27 Stocks That Have Given Triple-Digit Returns Since Last Republic Day
In the last 10 months, the optimism scene has not only taken the benchmark indices ahead of their previous record high levels seen in January 2020 but has made the market overvalued.
Amid the COVID-19 crisis and lockdown, the market has witnessed a downfall. In the first half of 2020, the benchmark indices fell about 40 percent each from their record high levels of January 2020.
The broader markets outperformed frontliners with the BSE Midcap index gaining over 17 percent and Smallcap rising 22.7 percent.
"Markets are barometers of the economy with a potential to discount the future. If this is true, the Indian economy is on a strong recovery path. If the recovery in growth and corporate earnings, currently underway in India, gathers momentum, the markets may further surprise on the upside," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He added, "But it is important to appreciate that the market is overvalued from the short-term perspective. At high levels, the market is vulnerable to a correction. Investors can utilize the current euphoria to get rid of low-grade stocks from the portfolio."
In one year period from last Republic Day, about 300 stocks out of the BSE500 index closed in the green, of which top 27 stocks have given triple-digit returns (100-800 percent) including Tanla Platforms, Adani Green Energy, Aarti Drugs, Laurus Labs, Birlasoft, IndiaMART InterMESH, Dixon Technologies, Tata Elxsi, Affle India, Navin Fluorine International, Tata Communications, Adani Enterprises, Persistent Systems, and JB Chemicals.
The next 50 stocks in the BSE500 index rallied in the range of 50-99 percent which included Bajaj Electricals, Aurobindo Pharma, L&T Infotech, Mindtree, Syngene International, Divis Laboratories, Cipla, Havells India, Wipro, JK Tyre, Escorts, Infosys, Dr. Reddy's Laboratories, Ipca Laboratories, HCL Technologies, Muthoot Finance, Tata Chemicals, and Tata Consultancy Services.
On the other side, Future Retail, Future Consumer, Raymond, Chalet Hotels, Punjab National Bank, Union Bank of India, Jagran Prakashan, Canara Bank, Indiabulls Housing Finance, Century Textiles, DCB Bank, Bandhan Bank, IndusInd Bank, RBL Bank, Coal India, IIFL Finance and Edelweiss Financial Services corrected 30-75 percent from last Republic Day.
"There has been a visible recovery in the domestic economy since COVID lows, which is also translating into strong business/ profitability performance from companies across the spectrum. The earnings growth momentum witnessed in September 2020 quarter accelerated further in the December 2020 quarter. The market is also seeing strong liquidity conditions," Harsha Upadhyaya, President & CIO - Equity at Kotak Mahindra Asset Management Company.
"While it is difficult to predict short term market movements, some choppiness at higher valuation levels cannot be ruled out. However, we continue to remain positive on the medium-to-long term outlook for domestic equities. The conditions seem favorable for the continuation of foreign flows into the country even this year," he added.