Sensex@record high: Here are stocks that turned multibaggers since last high

NEW DELHI: Since the peak of 62,245 touched on October 19 last year, Indian equity index Sensex has hardly given any return in more than a year but 10 stocks have turned multibaggers in between the two peaks.

With a return of 238% PSU defence stock Mazagon Dock Shipbuilders tops the list of best performing stocks within the BSE500 pack, shows data from ACE Equity.

The list is dominated by three Adani stocks - Adani Total Gas (164.55%), Adani Power (160.42%) and Adani Enterprises (149.85%).

Bharat Dynamics and Rail Vikas Nigam Ltd (RVNL) are the two other PSU stocks that have more than doubled during the period.

Others on the multibagger list include Elgi Equipments, Bharat Dynamics, RHI Magnesita India, CG Power and Industrial Solutions and KPIT Technologies.

On the other hand, at least 13 stocks have eroded wealth of over 50% since the last market high. Bhopal-based construction company Dilip Buildcon has been the worst performer with a loss of over 66%. Zomato, Gland Pharma, Shilpa Medicare, Zensar Technologies, Mastek, Quess Corp and Vaibhav Global have been other top wealth eroders during the period.



What should investors do?
Many analysts are cautious about high valuations amid looming demand slowdown but say there are enough stock picking opportunities in the broader market as several pockets have not participated in the rally.

The current leg of the rally is driven by heavyweights like HDFC Bank, ICICI Bank, HDFC, Infosys, TCS, HCL Tech and RIL. "But the market is unlikely to surge from the record highs since the valuation headwind will act as a restraint," said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Domestic brokerage firm Nuvama Institutional Equities has an overweight stance on FMCG, auto, telecom, internet and pharma stocks and underweight on industrials, commodities, real estate and durables.

Global brokerage Goldman Sachs, which expects Nifty to reach 20,500 by the end of 2023, is bullish on banks, insurers, industrials and cement.

Over FY22-24, Nifty earnings are seen growing at 14.9% CAGR, domestic brokerage ICICI Securities said. "Keeping the same PE multiple, we now value Nifty at 20,000 i.e. 21x PE on FY24E EPS of Rs 950. On forward earnings front, BFSI space witnessed healthy earnings upgrade (led by corporate banks) while marginal upgrades were witnessed in the FMCG, IT & oil & gas space,” it said.

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