Trading activity in the NSE SME Market picked up on Monday, with Infinium Pharmachem Ltd and Madhusudan Masala Ltd standing out as notable gainers. Both counters witnessed renewed investor interest and rising volumes, drawing attention to lesser-known, low-coverage stocks that often move sharply when momentum builds.
Infinium Pharmachem: niche pharma chemicals play
Infinium Pharmachem, incorporated in 2003 and listed on the NSE SME Emerge platform, manufactures and exports iodine-based pharmaceutical intermediates and active pharmaceutical ingredients (APIs). The company caters to both domestic and global clients, with its products finding use in healthcare, industrial, and specialty chemical segments.
- The stock traded around ₹256 during the session, marking healthy intraday gains.
- Market capitalization stands at nearly ₹399 crore, positioning Infinium among mid-tier SME chemical plays.
- Financial metrics suggest a P/E ratio of ~49 (TTM) and a book value near ₹70 per share, reflecting premium valuations for a niche sector player.
Investor interest in Infinium is seen as part of a broader trend where small-cap chemical names attract attention on hopes of sustained export demand and import substitution themes in India.
Madhusudan Masala: FMCG story from Gujarat
Madhusudan Masala, based in Rajkot, Gujarat, operates in the spices and condiments business. Though relatively low in analyst coverage, the company has built a strong retail presence in western India under the “Madhusudan” brand.
- The counter saw brisk activity on Monday, marking one of its stronger sessions since listing.
- Market participants highlighted that festive season demand themes may be aiding sentiment around smaller FMCG players.
- While valuations remain modest compared to listed spice majors, the growth potential in regional markets is keeping investor interest alive.
Why SME stocks are in focus
- Low coverage = high sensitivity
SME stocks like Infinium and Madhusudan Masala often lack analyst coverage, which makes them highly reactive to shifts in trading flows. - Liquidity effect
With relatively thin order books, even modest institutional or HNI buying can lead to sharp price spikes. - Alpha hunting
Traders rotate into SMEs when benchmarks remain range-bound, seeking higher short-term returns.
By the Numbers
| Company | Sector | Market Cap | Notable Point |
|---|---|---|---|
| Infinium Pharmachem | Pharma / Chemicals | ~₹399 crore | Iodine-based intermediates; global exports |
| Madhusudan Masala | FMCG / Spices | Small-cap SME | Regional spice brand; festive demand theme |
Risks & investor caution
- Volatility: SME stocks can swing widely intraday due to thin liquidity.
- Information asymmetry: Limited public disclosures make it harder for retail investors to assess fundamentals.
- Speculative flows: Sharp gains are often flow-driven rather than fundamentally anchored.
Outlook
The day’s momentum in Infinium and Madhusudan Masala reflects renewed appetite for SME counters. Whether this marks the beginning of a broader SME rally or remains isolated to select names will depend on follow-through volumes and fresh corporate disclosures.
For now, these low-coverage names remain high-beta plays that can deliver sharp moves — both ways — and will be watched closely in coming sessions.
