5 best small cap stocks - 2009

The year 2009 proved to be a very scintillating year for the equity markets, across the globe, particularly for markets like India, which are still emerging.

India`s benchmark 30-share index, the Bombay Stock Exchange (BSE) Sensex is been amongst the best performers across key world markets during the current year, gaining more than 75% so far.

The small cap companies performed outstandingly too. This is evident from the fact that BSE Small Cap index, witnessed a 2.2 times yearly rise, as on Dec. 24, 2009.

Let`s have a glimpse of 5 star performers among the Small cap stocks in 2009 which have managed to make a mark while many others have failed:

Ahluwalia Contracts India:

Ahluwalia Contracts India (ACIL), a New Delhi based civil engineering contracting firm is engaged in construction of malls, hospitals, educational institutes, commercial complexes, luxury hotels, corporate office complexes, and multistoried residential complexes.

Stock price of the company zoomed 516.61% to stand at Rs 180.05 a share as on Dec. 23, 2009 as against Rs 29.2 as on Dec. 31, 2008.

Its stock performance during the year can be mainly attributed to factors like, during the year the company bagged new projects and orders nearly worth Rs 15.28 billion. Also it reported 63.80% growth in its NPAT for September quarter 2009.

OCL Iron and Steel:

OCL Iron and Steel mainly engaged in manufacture and sale of steel billets and sponge iron. These products are used by producer/manufacturer of finished/semi finished goods. It manufactures power from waste heat available at the sponge iron plant and also from coal.

Stock price of the company jumped 515.47% to stand at Rs 27.45 a share as on Dec. 23, 2009 as against Rs 4.46 as on Dec. 31, 2008.

Jindal South West Holdings:

Jindal South West Holdings (JSWHL) is a non-banking financial company (NBFC) registered with Reserve Bank of India (RBI). Its main business activities involve investment in shares, stocks, or other securities in India or abroad. It also provides management consultancy services for customers in finance, organization, management, commencement or expansion etc.

Stock price of the company zoomed 499.90% to stand at Rs 1,807.5 a share as on Dec. 23, 2009 as against Rs 301.3 as on Dec. 31, 2008.

Jindal South West Holdings` net profit rose 31.2% in Sep Q2 `09 over Q2 September 2008.

Kiri Dyes and Chemicals :

Kiri Dyes and Chemicals is a manufacturer and supplier of high quality dyes and intermediates for the dyestuff industry.The company also has has a well established customer base in India and countries like Korea, Turkey, Taiwan, Bangladesh, USA, and Canada among other countries.

Stock price of the company zoomed 497.81% to stand at Rs 627.7 a share as on Dec. 23, 2009 as against Rs 105 as on Dec. 31, 2008.


During the year Kiri Dyes reported many developments like acquisition of DyStar Group and its selective assets through insolvency, incorporation of wholly owned subsidiary named Kiri International Hong Kong abroad also its net profit for Sep quarter jumped 72.32% as against same period in the prior year.


Ajmera Realty and Infra India:

The company is engaged in the manufacture of pre-coated steel strips/aluminium strips, which are cold-rolled and galvanised. The product-mix includes alkyd/polyester coated and PVC laminated cold-rolled and galvanised coils. The group also has strong presence in the fields of textiles, printing, information technology and entertainment.

Stock price of the company zoomed 473.24% to stand at Rs 215.25 a share as on Dec. 23, 2009 as against Rs 37.55 as on Dec. 31, 2008.

While 2009 was seen as year with a clear uptrend market, 2010 is expected to be a volatile year driven by event risks which will trigger the direction, but still keeping our fingers crossed we hope that `small still remains beautiful` in the coming year too.

via IRIS