Karur Vysya Bank fell more than 40% so far in the year 2020, and Prozone Intu Properties fell by about 20%. On the other hand, Birlasoft rose 70% while Vaibhav Global rallied by about 90% in the same period.
The big bulls of D-Street are known for their liking of small & midcap themes. Despite the widening gap between the broader market and frontliners over the last two years, the who's who of D-Street have maintained their staunch belief in the small & midcap story.
Moneycontrol has collated a list of four stocks that are common in the portfolios of at least two big investors. We have taken reference from the portfolio of Rakesh Jhunjhunwala, Radhakishan Damani, Ashish Kacholia, Ashish Dhawan and Vijay Kedia.
Karur Vysya Bank has fallen more than 40 percent so far in 2020 and Prozone Intu Properties is down 20 percent. On the other hand, Birlasoft rose 70 percent this year, while Vaibhav Global rallied by about 90 percent in the same period.
Experts are of the view that the recovery in the broader market space is underway and there is a higher possibility that mid & smallcap stocks could outperform the largecaps in the near future.
“We believe that the broader market recovery is underway and expect an improved performance from midcaps. Our study of past market corrections indicate that midcaps outperform largecaps in the later stages of market recovery,” Elara Capital said in a report.
The brokerage further added that the weight distribution is more diverse in the midcap index relative to Nifty and is favourably disposed towards pharma, healthcare services, auto and industrials which they believe augurs well for its outperformance amid favorable price support and valuations, added the note.
Karur Vysya Bank which fell by about 40 percent and Birlasoft which rallied 70 percent so far in 2020 have reported strong earnings in the June quarter.
Last month Karur Vysya Bank (KVB) reported a healthy 45 percent jump in the net profit at Rs 105.50 crore in the first quarter of the current fiscal on fall in bad loans.
Asset quality improved, with gross non-performing assets (NPAs) falling to 8.34 percent of gross advances as on June 30, 2020, from 9.17 percent a year ago.
Birlasoft hit a fresh 52-week high in August after the company reported a nearly 35 percent rise in consolidated net profit for Q1 FY21. Birlasoft is a part of the $2 billion diversified C K Birla Group.
The company posted a profit of Rs 41.8 crore for April-June 2019, Birlasoft said in a regulatory filing. Revenue from operations grew 17.7 percent to Rs 914.6 crore in the period under review from Rs 777.2 crore in the year-ago period.
Vaibhav Global, which is a multi-national electronic retailer, wholesaler and manufacturer of fashion jewellery and lifestyle accessories, reported a healthy jump of 47 percent YoY in net profit for the June quarter to Rs 53 crore, compared to Rs 36 crore reported in the year-ago period.
Prozone Intu has been set up to create, develop and manage world-class regional shopping centres and associated mixed-use developments pan-India. Its partner Intu Properties Plc, UK owns and manage 12 of the top 20 UK Shopping Centre.
While the June quarter results are awaited, the March quarter results showed over 70 percent decline in the profit on a year-on-year basis.
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