These 140 stocks turned multibaggers since last Independence Day

© Kshitij Anand
These 140 stocks turned multibaggers since last Independence Day

The market put up a strong show since the last Independence Day 2020 with the benchmark indices hitting fresh record high levels despite intermittent consolidation and correction. In fact, that consolidation and correction made the market healthier as the BSE Sensex surged 46.36 percent in the last one year.

The northward journey can be attributed to the economic growth recovery, consistency in GST collection of over Rs 1 lakh crore every month, robust earnings growth, gradual easing in restrictions by the states in India amid stability over Covid infections count, increasing pace of vaccination across the country, ample liquidity availability etc.

Investors’ wealth increased by Rs 88.83 lakh crore in the last year, as the BSE market capitalisation increased to Rs 240.23 lakh crore on August 13, 2021, from Rs 151.39 lakh crore on August 14, 2020.

The BSE Midcap index gained 60 percent and Smallcap index shot up 90 percent in the same period, as all the sectors contributed to this rally with Metal being the leader at 142 percent. Auto, Bank, Capital Goods, Healthcare, IT, Power and Realty indices gained 32-93 percent.

The momentum was so strong that 140 stocks of BSE500 have given multibagger returns since the last Independence Day. Of that, top 10 stocks – Adani Enterprises, Adani Total Gas, Tanla Platforms, Balaji Amines, HFCL, KPIT Technologies, JSW Energy, Tata Elxsi, IIFL Finance, and Adani Transmission – registered 305-632 percent rally during the same period.

Among others, Firstsource Solutions, Graphite India, APL Apollo Tubes, Jindal Stainless, Tata Steel, SAIL, Persistent Systems, HEG, Lux Industries, Tata Chemicals, PNB Housing Finance, Welspun India, JSW Steel, JK Paper, Vedanta, Dixon Technologies, Sobha, Mindtree, Adani Green Energy, IndiaMART InterMESH, Just Dial, Tata Motors, Hindalco Industries, NALCO, Apollo Hospitals Enterprises, Gujarat Gas, DLF, Adani Power, Indiabulls Real Estate, Bajaj Electricals, Wipro, State Bank of India, Polycab India, Ashok Leyland, Dr Lal PathLabs, Havells India, Jubilant Foodworks, Adani Ports, and IndusInd Bank rallied 100-284 percent.

“Indian markets have hit record highs and a lot of stocks have awarded investors with multi-fold returns in the last 12 months. Stocks across segments have turned out to be multibaggers. Not just the secondary markets, but we have seen a huge amount of traction in the primary market as well in recent times. This signifies that a lot of foreign investors are interested to place their bets on the Indian economy considering its growth prospects,” Gaurav Garg, Head of Research at CapitalVia Global Research told Moneycontrol.

Going forward, he expects growth stocks to eventually turn out to be multibaggers in the long run.

“With gradual opening of economy and increasing demand, we expect the focus to shift to largecaps. Investors should now be careful in choosing sectors and stocks before placing bets,” he said.

Financials and infra stocks hold the potential to lead the race with increasing government focus on spending and cheaper availability of credit, he believes.

Overall, more than 90 percent of BSE 500 stocks closed the year in green and the rest ended in red including Future Retail, GE Power India, Future Consumer, Vodafone Idea, Ujjivan Small Finance Bank, Alembic Pharmaceuticals, Petronet LNG, Hindustan Aeronautics, Bharat Dynamics, Aurobindo Pharma, Mishra Dhatu Nigam and Ujjivan Financial Services which corrected 10-52 percent in last one year.

Foreign institutional investors provided healthy support to the market as they have net bought Rs 1,35,282.16 crore of shares since last Independence Day. However, in the same period, domestic institutional investors used the opportunity intermittently to book profits, selling Rs 90,039.49 crore worth of shares.

Considering the market at record high levels and running ahead of fundamentals, experts advised investors to focus on stocks than on market levels, to build strong portfolio that can give healthy returns in coming years as earnings and economic growth is expected to be strong with increasing vaccination and low interest rate environment.

“I believe investors would need to learn to differentiate today, rather than look at how the markets behave. Investors positioning their portfolio towards growth will continue to see returns accrue to their portfolio. It would be wise for investors to price in increased volatility in the portfolio today,” Naveen Chandramohan, Founder & Fund Manager of ITUS Capital told Moneycontrol.

“The Q1FY22 earnings that have come out have been robust. There have been pockets of pain in auto, pharma (predominantly from pricing pressure in the US), however on the bright side, manufacturing, IT and domestic pharma companies continue to show robust growth,” he said.

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