5 Best Performing Smallcap Stocks that Rallied Over 200% in 2024

In calendar year 2024, the BSE small-cap index rose to a level that surprised many experts, and proved to be the most profitable for investors.

But narrative change quickly in the Indian stock market. As you would be aware, the mid and smallcap space is under the weather these days.

This fall is attributed to regulators' warnings on froth in smallcap and midcap space, and recent news on ED crackdown on some entities involved in manipulation in stock markets, especially smallcap space.

And then, there is this phenomenon of investors adjusting portfolios for tax loss harvesting in the month of March.

The recent market fluctuations has shined new light on the top performing small-cap stocks.

In today's article, we'll look at the top 5 performing smallcap stocks of 2024 so far and analyze what lies ahead.

#1 Waaree Renewable Technologies Ltd.

First on this list is Waaree Renewable Technologies Ltd.

The company is a well-known Indian business engaged in solar energy product manufacturing as well as its distribution.

They are also the providers of solar modules, inverters, mounting structures, and EPC (engineering, procurement, and construction) services for solar power plants.

In 2024 so far, Waaree's stock price has soared about 238%.

The surge is attributed to the company's increasing emphasis on renewable energy.

This has resulted in massive order book growth providing healthy revenue visibility for the future.

The company's expansion plans together with the strategic partnerships have contributed to rising investor confidence.

Recently, Waaree declared robust Q3FY24 figures, which showed a massive rise in revenue, EBITDA, and profit after tax.

Apart from that, they won additional contracts for solar plants and aim to grow their production capacity.

In the years to come, the company's commitment to innovation and building on the generated energy will probably be the main factors for its growth.

#2 RS Software (India) Ltd.

RS Software (India) Ltd. is a software and related services to the payments industry company, with a focus on electronic payment.

They are engaging with a global audience like Networks, Processors, Banks, Merchants, and Payment Service Providers.

Their services include development, maintenance, testing, and project management, with the client-server and web technologies being the core part of their activities.

In 2024 so far, shares of the company have demonstrated a huge growth of over 222%.

The recent rally is attributed to strong Q3FY24 results depicting both revenue (around 130% YoY growth) and net profit soaring which impressed investors greatly. The growth indicates positive demand for their software solutions from the market.

Also, the surge of digitalization in multiple sectors of India has therefore created a welcoming market for RS Software and its services.

RS Software just announced a new product hitting the market which resulted in increasing their client base and expanding their market share.

Moreover, they have ventured with strategic investments in research and development to evolve their products as well.

Indian IT sector's relentless expansion and multiplying online needs among industries are the keys to the long-run success of RS Software.

The firm's emphasis on innovation and broadening its customer base will be crucial factors that determine the future of the company.

#3 Madhusudan Securities Ltd.

Madhusudan Securities and Investment Pvt. Ltd., a small-cap Indian firm, is engaged in the financial and investment sector in the country. They provide equities, commodities, and derivatives for brokering.

Although Madhusudan Securities may not be a common name at every home, it has emerged to become the standout stock performer in the year 2024.

Even after the latest fall, shares of the company are up 170% in 2024 so far.

This impressive growth can be attributed to the increasing participation of retail investors in the Indian stock market which could be the cause of higher demand for firms like Madhusudan Securities.

The outstanding performance of the finance sector in 2024 could be one of the factors of Madhusudan Securities' ups and downs.

It is perceived that consistent attention from retail investors can keep the stock level going.

The strong earnings for companies like Madhusudan intertwines with the fact that India is still underpenetrated in terms of their share across wealth and credit products.

No wonder broking firms are increasing the penetration of cross-selling financial products to active customers. This move is expected to scale up distribution businesses even further.

#4 Precision Electronics Ltd.

Precision Electronics Ltd. is a micro-cap company in the Indian electronics components industry.

The company is a telecom infrastructure enabler with interest in infrastructure development, system integration, and manufacture and supply of high-end telecom equipment.

Precision Electronics, like the other stocks mentioned, has had a brisk start to 2024.

In 2024 so far, shares of the company have rallied 170%.

The growing demand for electronics in India, especially in sections like telecom and consumer durables, has created favorable conditions for Precision Electronics.

The continued development of the Indian electronics industry, especially that related to Precision Electronics' products, would impact positively on the company.

#5 Sizemasters Technology Ltd.

Sizemasters Technology Ltd., previously called Mewat Zinc Limited, is a heart and parlor miner and processor of zinc concentrate.

Sizemasters Technology Ltd. has achieved an impressive milestone, already rallying over 175% in 2024 so far.

Over the past year on the global zinc market, there has been a substantial increase which stems from disruptions in supply chains, alongside increased demand from infrastructure projects as well as mine closure concerns.

This has been a catalyst for zinc producers such as Sizemasters Technology Ltd, who have seen the direct impact.

The repositioning of the company from Mewat Zinc to Sizemasters Technology could have shifted the attention back to the original business and led to positive investments.

Expanding the operations by building new mines or processing plants would lead to a significant increase in output and also profit for the company.

The possibility of acquiring new zinc exploration projects or getting into strategic acquisitions could boost its long-term growth.

The strength in the international zinc market would also boost prospects.

In Conclusion

These small-cap stocks have indeed had a brisk start in 2024, but one must remember that small-cap investing is associated with higher risk.

Such firms in turn face greater risks of being hurt by disruptive changes in their segment, economic downturns, and periods of limited liquidity.

Before making investments in a small-cap stock, research the company, its industry, and the risk factors. The research should be thorough.

Evaluate the regulatory environment, the competition, and the state of the sector to make an educated investment decision.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here.