Microcap stocks defy market: 50 stocks rise over 200% amid selloff; analysts caution over poor earnings, bubble risk
Leading the list is RRP Semiconductor, a Maharashtra-based firm whose shares skyrocketed from Rs 50.6 to Rs 2,833, translating into a 5,500% jump in under 11 months, according to an ET report. The company's market capitalisation rose from Rs 68.9 crore to Rs 3,858.5 crore, despite posting only Rs 32 crore in revenue and Rs 8.5 crore in net profit for FY25.
Penny frenzy amid broader correction
The meteoric rise in these counters comes at a time when broader indices have seen a correction.
Since September 27, 2024, the Nifty Smallcap 250 and Nifty Midcap 150 indices are down 3% and 1.8%, respectively, while the Nifty Microcap 250 has fallen 4.8%.
Among other top gainers are Elitecon International, Sumeet Industries, Vega Jewellers, Midwest Gold, Kothari Industrial Corporation, Arunis Abode, and Rajasthan Tube Manufacturing, with returns ranging from 1,000% to 4,800%.
Top Performing Microcap & Penny Stocks Since Sept 27, 2024
(Figures in Rs crore)
Company
CMP (Rs)
Current MCap (Rs cr)
% Chg since Sept 27, '24
FY25 Revenue (Rs cr)
FY25 PAT (Rs cr)
RRP Semiconductor
2,833.0
3,858
5,500.9%
32.0
8.5
Elitecon International
144.7
23,130
4,723.0%
551.4
69.6
Sumeet Industries
125.5
66
2,977.0%
1,195.0
170.3
Vega Jewellers
145.2
138
2,868.3%
10.6
0.2
Midwest Gold
1,264.3
413
1,699.4%
1.1
-5.6
Kothari Industrial Corporation
418.2
3,920
1,443.7%
87.6
-16.2
Arunis Abode
464.2
139
1,229.9%
0.5
-0.2
Rajasthan Tube Mfg Co
42.5
192
1,059.1%
56.4
0.5
Stellant Securities (India)
367.9
27
757.0%
1.9
1.3
IMEC Services
149.6
28
719.5%
28.8
25.4
Source: ET report
However, ET reported that 12 of the 50 stocks had reported net losses in FY25, and 19 had revenues below Rs 10 crore—raising concerns over fundamental weakness despite massive market cap expansion.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Studio & 1 BHK at ACE Nest – Book with ₹5 Lacs Only!
Ace Noida
Book Now
Undo
'Mini-bubble' fears as
Sebi caution
still looms
Experts are warning retail investors to tread cautiously. 'One could say that it is a mini-bubble in a group of penny stocks, and one should be extremely careful not to get trapped with their core investment corpus in such stocks,' said Vikas Gupta, CEO, OmniScience Capital.
He noted that many traders are lured in by rumours of asset monetisation or future business potential, often unsupported by operational strength.
'Sebi had cautioned investors last year about price manipulation in SME and microcap counters, and those risks haven't gone away,' said Apurva Sheth, Head of Research, Samco Securities.
Sheth added that only 8 of the 50 stocks had a PE ratio between 0–50 and market cap-to-sales ratio below five—basic screens to assess a stock's fundamental viability. 'Most of the stocks from SME or microcap space have low corporate governance standards and no institutional ownership, thus investors would be better off staying away from them,' he said.
Gupta echoed the caution 'Yes, there can be exceptions, but are you expert enough to understand the exceptions? If not, stay away from such stocks.'
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
4 minutes ago
- India.com
Delhi Court Issues Notice To Robert Vadra In Money Laundering Case Filed By ED
Delhi's Rouse Avenue Court on Saturday issued a notice to Robert Vadra, husband of Congress leader Priyanka Gandhi Vadra, in connection with a money laundering complaint filed by the Enforcement Directorate (ED). The development comes after the Enforcement Directorate (ED) filed a new chargesheet on August 28. As part of the investigation, the ED has attached 43 immovable properties valued at Rs 37.64 crore, allegedly connected to Robert Vadra and his associated entities. Prosecution complaints have been filed against him and 10 others. The charge sheet, which pertains to an alleged illegal land deal in Shikohpur village, Gurugram, accuses Vadra and his company M/s Sky Light Hospitality Pvt. Ltd. of purchasing 3.53 acres of land through fraudulent means. The ED has already attached 43 properties allegedly linked to Vadra and his firm, worth a total of Rs 37.64 crore, as part of the ongoing investigation. The case dates back to a 2008 FIR filed by Gurugram Police, which alleged that Vadra's company purchased land from M/s Onkareshwar Properties Pvt. Ltd. for Rs 7.5 crore using a false declaration. Just a few years later, in September 2012, Sky Light Hospitality sold the same land to real estate giant DLF Ltd. for Rs 58 crore, raising serious questions about the nature and legality of the transaction. The controversy deepened when Ashok Khemka, then Director General of Land Consolidation and Land Records and Inspector-General of Registration in Haryana, cancelled the land mutation, declaring the transaction violative of state regulations. His actions at the time sparked a political firestorm and led to a prolonged legal and administrative scrutiny of land dealings involving political figures. Earlier on July 18, 2025, the Rouse Avenue Court had taken note of the ED's charge sheet and listed the matter for hearing. Presiding Special Judge Sushant Changotra had directed the court record keeper to verify all accompanying documents and provide a detailed report. The Enforcement Directorate is likely to press for further legal action in the hearing, potentially including the summoning of Vadra for questioning based on the charge sheet's findings. Opposition parties have accused the government of using investigative agencies for political purposes, while the ED maintains it is pursuing the case based on documentary evidence and financial trails.
Hans India
4 minutes ago
- Hans India
Collector rates to go up in Haryana, Congress slams govt
Chandigarh: The revised collector rates are set to be implemented in Haryana from next month for property registration, with opposition Congress claiming it will send land prices sky high. The revised rates, which have been uploaded as draft proposals on websites of various districts for public objections which can be filed by July 31, vary across the state and even within specific localities depending on various factors. Collector rate is a minimum value at which the property can be registered in the government records and the registration fee and stamp duty to be paid while buying a property is based on these rates. At several places, the revised rates, which are set to come into effect from August 1, are likely to align with the prevailing market values of properties at different places. A 77 per cent increase has been proposed for residential land which is located two acres off the National Highway in Gurugram village, from earlier 25,300 per square yards to Rs 45,000 per square yard. In Gurugram's Carterpuri, the hike proposed in residential property is 25 per cent while in DLF Colony Old, it has been proposed to be increased by 19 per cent. In Rohtak district, the collector rates have been proposed to be increased by five to 25 per cent in different parts and in Panchkula, for several residential sectors, a substantial increase has been proposed. A hike in collector rates for industrial zones at several places has also been proposed. The previous hike in collector rates was made in December. Congress leader and former chief minister Bhupinder Singh Hooda demanded 'withdrawal of the increase in the collector rate' and said that the decision will send the land rates sky high. Asked about his demand on sidelines of an event here by media persons, Chief Minister Nayab Singh Saini said that during Congress' time too, collector rates were increased.
Hans India
4 minutes ago
- Hans India
₹90 cr high-tech dairy plant nears completion in TN's Namakkal; set to revolutionise milk processing
Chennai: A Rs 90-crore high-technology dairy processing plant in Namakkal is nearing completion, with 80 per cent of construction work already finished, signalling a major leap forward for the region's dairy sector. Backed by the National Dairy Development Board (NDDB), the project is expected to begin trial operations in November 2025 and commence full-scale production by January 2026. Once operational, the plant will have the capacity to process 2 lakh litres of milk per day, making it one of the largest and most advanced dairy facilities in Tamil Nadu. The fully automated unit will handle every stage of milk processing — from chilling and pasteurisation to packaging and dispatch — ensuring efficiency and quality throughout the supply chain. Officials overseeing the project have confirmed that in addition to the civil construction nearing completion, 90 per cent of the machinery has already been procured, with 40 per cent installed on-site. Departments have been directed to expedite the remaining work to meet the timeline for trial and full operations. The plant is expected to directly benefit more than 15,000 dairy farmers in the district by streamlining milk procurement and ensuring timely payments. With faster handling and reduced spoilage, farmers will gain both in income and efficiency. The facility is also anticipated to create indirect employment for about 1,000 people in associated sectors like transportation, packaging, maintenance, and quality control. For consumers, the plant promises a more reliable supply of Aavin milk and dairy products. Around 4 lakh people in Namakkal and neighbouring areas are expected to benefit from reduced delivery delays and fewer shortages, especially during high-demand periods such as festivals. Authorities say the Namakkal plant is set to become a model for modern dairy infrastructure in Tamil Nadu. By combining cutting-edge technology with a focus on farmer welfare, the project aims to strengthen the state's milk supply chain while boosting rural livelihoods and employment.
