look news india
Mumbai: Small and medium companies (SME) stocks have performed well in the market so far this year (2024). According to data from Chhabhai Equity, the shares of some companies have risen by more than 700 per cent. Of the 192 SME stocks listed on the National Stock Exchange, shares of about 57% (109) companies have registered significant gains during the period so far.
Of these, the shares of 65 companies have increased by 10 to 99 percent, while the share prices of 25 companies have more than doubled. In comparison, the Nifty 50 index has gained only 10 percent during the same period.
Due to the rise in the stock market, the shares of many small and medium-sized companies (SMEs) have seen a surge, but experts are advising caution on the rise. Due to the good market environment, many SME shares have risen. According to them, the stock may be risky at the current height.
Some SME companies may have low float in their shares, which may lead to a rise in their prices. But, investors need to be cautious. If the P/E ratio of a company's stock is 50 times, then investors should see if the company has been generating profits at a rate of 30% consistently for the last three years. If not, then such SMEs should exit the stock.
Also, no GG unit should be a subsidiary of another industrial unit or be owned or controlled by another industrial unit. Companies in the small and medium enterprises (SME) sector manufacture products in a wide range of industries including food products, beverages, tobacco products, cotton textiles, wool, silk, synthetic products, jute and jute products, wood products, furniture and fixtures, paper products, printing publications and allied industries.
Trident Techlabs topped the SME stock returns table with a gain of 771 per cent, followed by Nabhan Industries (with a gain of 667 per cent).
