38 stocks turn multibaggers since last Holi; at least 32 double investor wealth

Equity markets have outperformed global peers for most part of the last year since Holi, but have turned wobbly this year, weighed down by rising interest rates and weak global sentiments. With the "festival of colours" just a day away, it is worth looking at how equities have performed during this period. Benchmark indices have given low single digit returns since the last Holi with both Sensex and Nifty rising 3.3% and 1.7%, respectively.

However, during the same period, at least 38 stocks have turned multibaggers, with at least 32 of them doubling investors' wealth, according to an analysis of stocks with market capitalisation of over Rs 1,000 crore. The multibaggers have come from a variety of sectors ranging from IT to banking to realty.

From the financials pack, four stocks have given multibagger returns to investors with Karnataka Bank surging as much as 153%, followed by UCO Bank, whose shares have risen 135%. Meanwhile, Karur Vysya Bank and South Indian Bank have risen 117% and 111%, respectively.

Among the multibagger pack, Knowledge Marine & Engineering Works was the top gainer as its shares rose by a massive 559%, while Axita Cotton was a distant second with 277% gain.

Shares of Mazagon Dock Shipbuilders, a public sector defence company, have surged about 187% since the last Holi. Other notable names, where investors have enjoyed bumper returns include, Ujjivan Financial Services (145%), Varun Beverages (115%), Kirloskar Ferrous Industries (101%), among others.

Interestingly, only four multibaggers --- Mazagon Dock Shipbuilders, UCO Bank, Mahindra CIE Automotive, Varun Beverages and Lloyds Metals & Energy came from the BSE 500 and the rest were from outside the pack.


Coming to the worst performing pack, at least 20 stocks, which include some notable names like Piramal Enterprises, Gland Pharma, TV18 Broadcast, have delivered negative returns of over 50%.



Four sectors S&P BSE Capital Goods, S&P BSE Auto, S&P BSE FMCG and S&P BSE Bankex have gained in double digits since India last celebrated Holi, while 11 of them including oil and gas, realty, metal among others were in red.

What should investors do?

Equity markets are likely to be volatile in the near term as investors weigh sentiments around the rate hike trajectory. The strong probability of El Nino, leading to a potentially warmer summer this time around, will likely be a key factor in deciding market direction.

As the summer theme gains ground, Axis Securities says related products such as AC, refrigerators, soft drinks, beverages may see volume uptick, while there could also be a surge in power demand in the forthcoming quarter.

Macro will continue to drive near-term fundamentals and key near-term monitorables in this regard would be the direction of oil, bond yields, the dollar index, China’s re-opening, and the trends in commodity prices, it said, adding that value stocks would likely outperform in the first half of current year.

Its top picks include ICICI Bank, Tech Mahindra, Maruti Suzuki, SBI ITC, among others in the large cap space, Federal Bank, Varun Beverages, Ashok Leyland, Praj Industries, CCL Products, PNC Infratech in the broader markets.

Meanwhile, Jefferies said the underperformance of Indian equity markets compared to emerging markets and Asian peers (excluding Japan) is likely behind. It is overweight on financials, industrials, consumer staples and property, while staying underweight on IT, pharma and energy sectors.

Prabhudas Lilladher, on the other hand, recommended accumulating fundamentally strong companies in uncertain times, saying rural demand has failed to pick up due to high inflation.

"However, strong Rabi crop, declining inflation and likely increase in rural spending ahead of 2024 elections will likely lead to demand revival. El Nino remains a key risk," it said. The brokerage is overweight on auto, banks, IT services, capital Goods and healthcare, and is underweight on metals, cement, consumer, oil and gas and NBFCs.

Owing to high valuations, Nuvama Institutional Equities is cautious on market outlook, while staying overweight on sectors with margin tailwinds like FMCG, pharma, cement, domestic auto, IT, telecom and internet.

(With inputs from Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)