Overnight Digest: These small caps will be in focus on Wednesday
De Nora India, KDDL Limited, Sirca Paints India, Mirza International, Mukta Arts and TCI Express made a fresh 52-week high today.
On Wednesday, headline equity indices Nifty 50 and Sensex ended in the green territory with gains of ~1.08 per cent each. Nifty Bank index climbed 1.88 per cent to end at 36,364.90. BSE Small-cap index relatively under performed broader markets by gaining only 0.27 per cent.
The following small-cap stocks are likely to be in focus on Thursday:
Sapphire Foods – The company has recently announced the opening of its 500th store, KFC Dindigul, Tamil Nadu. As restrictions have eased, the company has witnessed a healthy recovery in dine-in sales while their delivery sales have continued to accelerate. This has resulted in robust SSSG (same store sales growth) in the months of October and November 2021 over the corresponding period in both FY21 and FY20 (pre-covid period). The company expects to double our store count in next 3-4 years.
To quote, Sanjay Purohit, Group CEO Sapphire Foods from a filing with the exchange, “Allied with our increased pace of store expansion (13 Stores in Q1’FY22, 32 stores in Q2’FY22 and estimated 60 stores in Q3’FY22), system sales growth in Oct’21 & Nov’21 combined is 40 per cent plus over FY 20 (pre covid period). With our increasing scale and focus on cost efficiencies we expect the company to turn PAT positive in Q3’FY22, barring any new covid related disruptions.”
Wardwizard Innovations and Mobility – The company has announced that its electric two-wheelers brand ‘Joy e-bike’ have recorded its highest-ever monthly sales in November 2021. Driven by the festive cheer and rebound in the business activities, the company sold 3,290 units of electric scooters and motorcycles, marking the growth of 1,190 per cent compared to November 2020, where sales stood at 255 units. The company has further observed good traction especially for its low-speed models in both urban and semi-urban cities.
52-week High Stocks – De Nora India, KDDL Limited, Sirca Paints India, Mirza International, Mukta Arts and TCI Express made a fresh 52-week high today. These small-cap stocks will likely be in focus on Thursday, December 2, 2021.