Street turns to cos of small towns for next multi-baggers

Street turns to cos of small towns for next multi-baggers The quest for multi-baggers is prompting brokers to look beyond obvious circle of large-cap and mid-cap stocks. With most leading names either fairly valued or expensive, analysts are looking at lesser-known companies with businesses restricted to a particular place and are only tracked by local brokers of that place.

To name a few, Kolkata-based electric equipment manufacturer Stone India, Ahmedabad-based media company Sandesh, Surat-based Garden Silks, Kochi-based finance company Muthoot Capital, tea & coffee manufacturer Harrisons Malayalam and Mcleod Russel, Chennai-based First Leasing, Pune-based Walchandnagar Industries and Haryana-based Quality Dairy are among the long list of companies that are gaining favour with institutional investors, thanks to coverage by small brokers who reside in cities where these companies are situated.

“Some of these companies are only tracked locally; brokers meet the promoters of these companies informally and derive quality information from them. Bulk of the trading (in these shares) also come from investors who know the company well,” said Anil Bhattar, president-equity, KC Securities.