7 smallcaps with double-digit returns in each of last three months turn multibaggers!

Topping the list was , which has given a staggering 94% returns in January, followed by 45% returns in February, and another 26% returns in March. This stellar run turned the stock a multibagger, giving 291% returns in the first quarter of the calendar year.

Listed stocks of the Waaree Group found increased investor interest after another group company Waaree Energies filed papers for an IPO worth more than Rs 1,300 crore via fresh issue.

is another interesting smallcap story, as this stock gave returns of 51% each in January and February, followed by 42% returns in March. As a result, the cumulative return for the quarter translated to 239%.

Little known BSE-listed stock rose to fame among the retail investor community. This stock has given 183% returns in three months ended March after 130% returns in 2023.

For another BSE-listed smallcap stock, Spright Agro, 2024 turned out to be a comeback year, as the stock gave 244% returns in just three months, after witnessing a steep 68% correction in 2023.

These multibagger stories do suggest that the retail faith in this universe is very much intact, but it also calls for some caution.

Ever since market regulator rang alarm bells on the rising froth in the smallcap and midcap segment, the euphoria in this space has come off to an extent, with many money managers advising clients to be extremely careful and invest in quality names with decent earnings growth prospects.

“Like every bull market, there are segments that have driven the strong performance, and, hence, there are pockets where there is froth built up..However, we do not expect a sharp correction, rather a combination of time correction as earnings catches up to valuations over the next couple of quarters, along with a shift towards pockets where valuations are still reasonable,” said Rishabh Goel of Tailwind Financial Services.

There are optimists too on the Street, and Varun Saboo of Anand Rathi Shares is one among them.

“We are extremely positive on the smallcap space. Markets are going to track earnings growth and that will keep coming. The economy is doing exceptionally well. We are very hopeful on this one,” Saboo said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)