Synopsis: Small-cap stocks, Bharat Global, Elitecon, Magellanic Cloud, Cohance, Jindal Worldwide, and Reliance Infrastructure, have erased significant investor wealth over the past year, highlighting sharp volatility in the segment.
Small-cap stocks are known for high growth potential, but they also carry sharp downside risks. Over the past year, several small-cap companies have erased massive investor wealth, with some stocks crashing as much as 91%. These steep declines highlight the volatility in the segment and the importance of careful stock selection. Here’s a look at a few names that saw severe value erosion.
Bharat Global Developers Limited
Bharat Global Developers Limited is a diversified Indian trading and wholesale company incorporated in 1992. It sources, imports, and exports a wide range of products, including construction materials, textiles, agricultural goods, and gold.
With a market capitalization of Rs. 1,083.98 crore, the shares of Bharat Global Developers Limited closed at Rs. 107.05 per equity share, declining nearly 3.73 percent from its previous day’s close price of Rs. 111.20.
Bharat Global Developers Limited is currently trading at a discount of 90.8 percent from its 52-week high of Rs. 1,174.65. Over the past five years, the stock has provided returns of up to 562.85 percent.
Elitecon International Limited
Elitecon International Limited was founded in 1987 and makes and exports tobacco and fast-moving consumer goods (FMCG) products. It has a global footprint across Asia, Europe, and the Middle East and continues expanding its FMCG portfolio.
With a market capitalization of Rs. 10,422.22 crore, the shares of Elitecon International Limited closed at Rs. 65.20 per equity share, a decline of nearly 2.79 percent from its previous day’s close price of Rs. 67.07.
Elitecon International Limited is currently trading at a discount of 84.5 percent from its 52-week high of Rs. 422.65. Over the past five years, the stock has provided returns of upto 4,765.67 percent.
Magellanic Cloud Limited
Magellanic Cloud Limited was incorporated in 1981 and is based in Hyderabad. It provides digital transformation services, AI/IoT solutions, e-surveillance, software development, and drone-based services to clients worldwide.
With a market capitalization of Rs. 1,485.04 crore, the shares of Magellanic Cloud Limited closed at Rs. 25.21 per equity share, rising nearly 5 percent from its previous day’s close price of Rs. 24.01.
Magellanic Cloud Limited is currently trading at a discount of 76 percent from its 52-week high of Rs. 105.26. Over the past five years, the stock has provided returns of upto 639.30 percent.
Cohance Lifesciences Limited
Cohance Lifesciences Limited is a pharma CDMO platform offering integrated drug development, APIs, specialty chemicals, and advanced therapeutic services. It combines scientific expertise and manufacturing capabilities to serve global pharmaceutical innovators.
With a market capitalization of Rs. 13,655.73 crore, the shares of Cohance Lifesciences Limited closed at Rs. 356.95 per equity share, declining nearly 2.67 percent from its previous day’s close price of Rs. 366.75.
Cohance Lifesciences Limited is currently trading at a discount of 73 percent from its 52-week high of Rs. 1,328.20. Over the past five years, the stock has provided negative returns of upto 27.90 percent.
Reliance Infrastructure Limited
Reliance Infrastructure Limited is one of India’s largest infrastructure and energy firms, providing power generation, transmission, distribution, EPC services, and major infrastructure project execution across roads, metro, and defence sectors.
With a market capitalization of Rs. 5,150.80 crore, the shares of Reliance Infrastructure Limited closed trading at Rs. 126.05 per equity share, declining nearly 4.98 percent from its previous day’s close price of Rs. 132.65.
Reliance Infrastructure Limited is currently trading at a discount of 70 percent from its 52-week high of Rs. 425. Over the past five years, the stock has provided returns of upto 277.40 percent.
Jindal Worldwide Limited
Jindal Worldwide Limited was established in 1986 in Ahmedabad. The company manufactures textiles, including denim fabric, shirtings, and home textiles. It is among India’s largest denim producers with global clients and diversified production divisions.
With a market capitalization of Rs. 2,868.44 crore, the shares of Jindal Worldwide Limited closed at Rs. 28.61 per equity share, declining nearly 4.06 percent from its previous day’s close price of Rs. 29.82.
Jindal Worldwide Limited is currently trading at a discount of 66 percent from its 52-week high of Rs. 87.94. Over the past five years, the stock has provided returns of upto 126.70 percent.
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