At least 46 stocks on the BSE 500 have soared 100-340 per cent in 2021, whereas Sensex has delivered 20.2 per cent return during the period. About 310 stocks on the BSE 500 have outperformed the BSE’s barometer during the period.
Speciality chemical player Balaji Amines has rallied over 337 per cent between January 1 and August 31. The scrip has soared to Rs 4,046.4 from Rs 925.45 during the period.
The market is expecting good festive demand as well as strong earnings in the coming quarters, and this is visible in the current rally and in the valuations, said Ajay Pasari, Equity Advisor at InCred Equities. “However, one should not overlook the risks of investing in equities at expensive valuations.”
A market debutant last year,
, has gained 315 per cent to Rs 1,428.7 during the initial eight months of the calendar year. The scrip has delivered over 760 per cent return over its issue price of Rs 166.
Achin Goel, Portfolio Manager, Bonanza Portfolio, said the broader markets might not give investors magnanimous returns, but quality stocks in the small and midcap segments still have a huge potential to deliver multifold returns.
JSW Energy, Adani Total Gas, , Adani Enterprises and Gujarat Fluorochemicals have rallied 200-300 per cent during the period under review.
Despite a sharp fall of up to 35 per cent a few weeks back, the Adani Group stocks have been able to hold their ground.
Alkyl Amines Chemicals, Max Healthcare Institute, HFCL, Tata Elxsi, Deepak Fertilisers and Petrochemicals Corporation and eClerx Services have also jumped over 150 per cent after January 1, 2021.
Earnings growth is likely to remain good over the next few years, said Pasari of InCred, suggesting to focus on the companies with growth visibility over the next 2-3 years.
“There are good wealth creation opportunities for investors in a growing economy. After a prolonged rally seen in the last 16-17 months, the return expectations for investors must be curtailed down to some extent,” he added.
Lux Industries, KPIT Technologies, Redington (India), Tata Steel,
, Linde India, IEX, Mindtree, Balrampur Chini Mills Sonata Software, , CAMS, National Aluminium, Trident, MGL, Tata Coffee, Apollo Hospitals Enterprises and Jindal Stainless are some stocks which have turned multibagger this year.
However, not all the stocks have been able to reward investors. Half a dozen counters have almost halved investors’ wealth, thanks to leverage, asset quality issues and negative cash flows.
Seventy-three stocks on the BSE 500 have delivered negative returns in 2021, of which over three dozen have fallen over 10 per cent. Ujjivan Small Finance Bank, Bliss GVS Pharma, Ujjivan Financial, Future Retail, Vakrangee and Vodafone Idea are some notable wealth destroyers that have tanked between 40 and 50 per cent during the period.