Three stocks in the BSE Smallcap index have more than doubled investor wealth in 2020, a year which has seen major selloffs due to the coronavirus pandemic.

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Opto Circuits, IOL Chemicals and GMM Pfaudler have surged over 100 percent on a year-to-date basis. In comparison, the BSE Smallcap index has fallen over 17 percent in the same time period.

However, April and May have witnessed some recovery from the selloff.

The S&P BSE Smallcap index has recovered 23 percent from its 52-week low of 8,622 touched on March 24, 2020. In comparison, the benchmark the S&P BSE Sensex and the S&P BSE Midcap index have gained 19.8 percent from their respective 52-week low levels hit on the same day.

Given the run-up seen since March, analysts are now advising looking at good quality stocks with robust balance sheets, strong cash flow and dedicated management.

According to a recent report by JM Financial, "Post COVID, market movements have led to renewed interest and focus on pharma stocks. Technical factors like low weights, investor apathy, and under ownership have contributed to the sharp outperformance of the sector. However, for the current rally to be real and the stocks to sustain recent gains, earnings have to turn supportive for the sector."

Opto Circuits is a vertically integrated multinational medical technology Group that specializes in primary, acute and critical care products for the global markets. The stock of the firm has risen 144 percent in 2020. It is a penny stock and has gained from around Rs 2 to Rs 7 in 2020.

IOL Chemicals is one of the leading APIs/ bulk drug companies and is a significant player in the specialty chemical space with world-class facilities. It has a wide presence across major therapeutic categories like pain management, anti-convulsants, anti-diabetes, anti-cholesterol and anti-platelets. The stock added 119 percent in 2020 from Rs 174 per share to Rs 282.

GMM Pfaudler is a leading supplier of critical process equipment and systems to the global chemical and pharmaceutical industries. The company was up 106 percent from Rs 1,870 per share to Rs 3,850.

Among other gainers on the BSE Smallcap index, Alkyl Amines, India Cements, Spencer's Retail, Aarti Drugs, Astec Life, JB Chemicals and Pharma, Indostar Capital, Suzlon Energy, Escorts, and Adani Green were some of the other stocks that surged over 50 percent each in 2020.