Outfoxing the bears: These stocks can give good returns

In the midst of the sharp selloff in Indian equities in recent months, a few stocks managed to withstand the bear onslaught. Stocks such as Sharda Cropchem, Bharat Dynamics, VRL Logistics, Hindustan Aeronautics, Cholamandalam Investment, Ratnamani Metals, and Welspun Corp, among two dozen stocks, have returned between 15% and 80% so far in 2022, outperforming most broad market indices.

Since January, the Nifty fell more than 9% amid the global meltdown in equities triggered by tightening monetary policy by central banks, rising commodity prices and growing concerns over recession in the US.

The Nifty Mid-cap index declined nearly 13% in 2022, while the Nifty Small-cap fell 25%. Earnings estimates by analysts saw net downgrades in June, marking the seventh consecutive month when next year’s estimates have been cut.

This is expected to put pressure on stock prices. Among the two-dozen outperformers so far in 2022, about 15 stocks are expected to give returns between 15% and 30% in a year, according to Bloomberg consensus estimates. ET has compiled a list of such stocks, which are tracked by more than five analysts.