During the journey, as many as 15 NSE stocks have delivered returns of more than 10 times, rallying as much as 2,200 per cent since March 23, 2020.
According to market experts, inflows from domestic and foreign institutions, superb participation from retail investors, all-time low interest rates, a liquidity gush and the government’s push to restore normalcy created a long-running rally in the markets.
G Chokkalingam, founder & MD, Equinomics Research & Advisory, said it all started with bargain buying and a strong recovery trend. “The ample liquidity flow and a sharp rise in the number of new investors have taken the markets to new highs,” he added.
Speciality chemical player Balaji Amines, which topped the gainers’ table, has zoomed 2,193 per cent during the period. The scrip soared to Rs 4,946.45 on September 15, 2021, from Rs 215.75 on March 23, 2021. This is followed by IT company Tanla Platform and brewery maker Globus Spirits, which soared 2,030 per cent and 1,912 per cent, respectively, during the period under review.
Yogesh Mehta, founder, Yield Maximisers, said the second wave of Covid-19 did not impact the market as much as the first one. There was no panic selling in the market. “Record low interest rates, strong buying from foreign and domestic institutions, the government’s push on schemes like Atmanirbhar Bharat also boosted investors’ confidence in the Indian economy,” he said.
Saregama India, Subex, Mastek and Adani Total Gas are the other players to have delivered over 15 times’ returns. All four counters have surged 1,475-1,800 per cent. Godawari Power and Ispat, Brightcom Group, Intellect Design Arena, Tejas Networks, Reliance Power, Adani Enterprises, Goldiam International and Hikal, among others, have rallied over 1,000 per cent during the period.
About 100 NSE stocks have delivered over 500 per cent returns from the pandemic lows when investors rapidly lapped up stocks at dirt cheap prices. As many as 625 stocks have doubled their value in this period.
The study does not include companies listed after March 23, 2020. Route Mobile, Ami Organics, Happiest Minds, Angel Broking, Laxmi Organics and Zomato are some of the recently listed multibagger counters.
However, not everything has been hunky-dory on Dalal Street. Ten shares have delivered negative returns during the period under review, despite the sharp bull run in the broader markets. These stocks were trading below their price on March 23, 2020, eroding as much as 70 per cent of investors’ wealth.
“Investors shall keep management quality, valuation comfort, working capital and business potential as priority before taking any investment call,” Chokkalingam said.
The veteran said the mass consumption business will take a bit more time to recover. “Investors should avoid super-rich valuations in these businesses,” he said.
The list includes Future Lifestyle Fashions (69 per cent down), Future Retail (55 per cent down), Omaxe (53 per cent down), GE Power India (34 per cent down), Ujjivan Small Finance Bank (20 per cent down) and Chalet Hotels (11 per cent down).
Mehta of Yield Maximisers said such non-performers would not do any good to investors. “Investors should move to better counters, those that come with a strong outlook on the company’s performance in the long term,” he added.