Smallcap stocks that are trading at a discount of up to 43% to keep an eye on

Small-cap stocks have a market capitalization of less than Rs 16,800 crore. Small-cap companies have the potential for rapid development, making them appealing investments, even if their stocks may be volatile and represent more risks to investors. 

Here are three Small-cap stocks trading at a discount of up to 43% from their 52-week high 

Mahindra Logistics Ltd 

Mahindra Logistics Ltd offers comprehensive logistics and transportation services. The company provides Supply Chain knowledge to a wide range of industrial verticals, including automotive, engineering, and many more. 

The company shares are down by 27 percent from the 52-week high price of Rs 567. 

The company belongs to the small-cap category with a market capitalization of Rs 2,979 crore. Shares were trading at Rs 413.60 a share on Wednesday, up 1.26 percent from the previous close price. 

The company’s revenue increased 8 percent yearly, from Rs 1,199 crore in Q1FY23 to Rs 1,293 crore in Q1FY24. Net profit has declined from Rs 13 crore to a loss of Rs 8 crore. 

Mahindra Logistics’ network services account for the biggest chunk of revenue from its freight forwarding business. This segment saw a significant slowdown in Q3,2022, due to global slowdowns and capacity overhangs, which resulted in significant pricing adjustments with ocean prices for both export and import. 

After steadily rising to record highs during the second half of 2020, freight rates began to dip following the Russia-Ukraine crisis, as concerns about the economic consequences began to damper consumer sentiments. In the quarter, Mahindra Logistics was unable to make up for this pricing change, resulting in lower earnings. 

This decrease in freight costs was accompanied by a decrease in demand between the United States and Europe, resulting in fewer sailings. So in March 2023, the share touched a 52-week low price of Rs 349.70.

Delta Corp Ltd 

Delta Corp primarily operates in the Gaming, Hospitality, and online skill gaming segments. 

The company belongs to the small-cap category with a market capitalization of Rs 4,787 crore. Shares were trading at Rs 178.80 a share on Wednesday, up 0.25 percent from the previous close price. 

The company shares are down by 31 percent from the 52-week high price of Rs 259.95. 

The company’s revenue increased 9 percent yearly, from Rs 250 crore in Q1FY23 to Rs 272 crore in Q1FY24. Net profit has increased by 17 percent from Rs 57 crore to Rs 67 crore. 

Delta Corp and its subsidiaries own and operate five casinos in the Indian states of Goa and Sikkim. Delta Corp has also ventured into the fast-growing online gaming market with the acquisition of Gaussian Networks, which owns the online poker site ‘Adda52.com’. 

Delta Corp’s stock fell when the GST Council voted to apply a 28 percent tax on the total amount paid by customers. This move especially targeted the company’s skill-based real money gaming sector, which accounted for 5.2 percent of overall revenue in FY23. 

Balaji Amines Ltd 

Balaji Amines Ltd. specialises in the production of methylamines, ethylamines, specialty chemical derivatives, and pharmaceutical excipients. 

The company belongs to the small-cap category with a market capitalization of Rs 7,112 crore. Shares were trading at Rs 2,195 a share on Wednesday, up 1.09 percent from the previous close price. 

The company’s shares are down 43 percent from their 52-week high of Rs 3,844. 

The company’s revenue declined by 31 percent yearly, from Rs 670 crore in Q1FY23 to Rs 463 crore in Q1FY24. Net profit has decreased by 55 percent from Rs 148 crore to Rs 67 crore.

The company’s Chief Financial Officer (CFO), Hemanth Reddy Gaddam, on 20 May 2023. Following the resignation, the company stock fell more than 15 percent, and the company reported Weak Q4 Results for 2022-23. 

The company reported a 19.4 percent year-on-year growth in sales for the September 2022 quarter, to Rs 6.3 billion from Rs 5.2 billion the previous year, which was below analyst expectations. This was due to underperformance by the standalone business, which reported 3.6 percent YoY in revenue to Rs 4.5 bn. 

Written by Omkar Chitnis

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