Ever wondered about getting over 10 times return on Dalal Street in just 15 months? Data available with the exchange showed that at least 42 stocks on the BSE have rallied 1,000 per cent since March 2020 lows, when prime minister Narendra Modi announced a nationwide lockdown to curb the Covid-19 pandemic.
The benchmark BSE Sensex has gained 98% to 52,925 on June 25, 2021, against 26,674 on March 24 last year. On the other hand, broader indices BSE Midcap and BSE Smallcap have advanced over 128% and 182%, respectively, during the same period.
As much as 95% of stocks delivered a positive return to investors since March 2020. With a rally of 3,189%, Bihar Sponge Iron stood as the top gainer in the list. Shares of the company climbed to Rs 12.50 on June 21, 2021 from just Rs 0.38 on March 24 last year.
Before going ahead, here is a disclaimer that stocks mentioned in the article are for information purposes only. Penny stocks are highly risky in nature and do consult your financial advisors before taking any positions.
Other smallcap players including Saraswati Commercial (India) and Tanla Platforms have also gained over 2,000% during the same period. Mcleod Russel, GTL, Subex, Jaykay Enterprises, Tata Teleservices (Maharashtra), Proseed India, Godawari Power and Ispat, Intellect Design, Adani Total Gas and Reliance Power stood among other players in the list which have gained between 1,400%-2,000% during the same period.
Stocks that rallied over 10 times since March 2020
|Share price (Rs)|
|Bihar Sponge Iron Ltd.||12.50||0.38||3,189.47|
|Saraswati Commercial (India) Ltd.||2,927.55||116.90||2,404.32|
|GBL Industries Ltd.||4.33||0.19||2,178.95|
|Tanla Platforms Ltd.||843.15||38.80||2,073.07|
|Tata Teleservices (Maharashtra) Ltd.||39.25||1.90||1,965.79|
|Proseed India Ltd.||5.74||0.28||1,950.00|
|Mcleod Russel India Ltd.||33.45||2.02||1,555.94|
|Jaykay Enterprises Ltd.||36.95||2.31||1,499.57|
|Intellect Design Arena Ltd.||737.70||46.30||1,493.30|
|Godawari Power And Ispat Ltd.||1,326.40||84.45||1,470.63|
|Venus Remedies Ltd.||352.35||24.05||1,365.07|
|Smruthi Organics Ltd.||315.25||21.70||1,352.76|
|Adani Total Gas Ltd.||1,189.30||81.90||1,352.14|
|CG Power and Industrial Solutions Ltd.||78.45||5.50||1,326.36|
|Tips Industries Ltd.||1,257.35||89.60||1,303.29|
|Reliance Power Ltd.||15.24||1.09||1,298.17|
|Syncom Formulations (India) Ltd.||7.94||0.59||1,245.76|
|Dhanvarsha Finvest Ltd.||799.90||62.00||1,190.16|
|Goyal Associates Ltd.||6.25||0.49||1,175.51|
|Bharat Immunologicals & Biologicals Corporation Ltd.||74.65||5.90||1,165.25|
|AJR Infra and Tolling Ltd.||2.91||0.23||1,165.22|
|Saregama India Ltd.||2,840.70||225.05||1,162.25|
|PG Electroplast Ltd.||419.20||33.40||1,155.09|
|Danlaw Technologies India Ltd.||321.20||25.80||1,144.96|
|Garware Synthetics Ltd.||14.77||1.19||1,141.18|
|Maan Aluminium Ltd.||325.25||26.25||1,139.05|
|FCS Software Solutions Ltd.||2.35||0.19||1,136.84|
|Digispice Technologies Ltd.||44.75||3.68||1,116.03|
|Gujarat Petrosynthese Ltd.||74.40||6.18||1,103.88|
|Balaji Amines Ltd.||2,691.15||225.80||1,091.83|
|Parsvnath Developers Ltd.||15.77||1.33||1,085.71|
|Adani Enterprises Ltd.||1,519.45||129.35||1,074.68|
|ARC Finance Ltd.||4.81||0.41||1,073.17|
|Jaiprakash Associates Ltd.||13.42||1.18||1,037.29|
|Share India Securities Ltd.||451.05||40.40||1,016.46|
|Dynacons Systems & Solutions Ltd.||153.95||13.90||1,007.55|
|PMC Fincorp Ltd.||2.75||0.25||1,000.00|
In a scrip-specific update, cloud communications firm Tanla Platforms last month reported a consolidated net profit of Rs 102.54 crore for the quarter ended March 31, It had posted a consolidated net loss of Rs 89.12 crore in the same quarter last year. The company’s total income increased by 23.64 per cent during the reported quarter to Rs 650.09 crore as against Rs 525.77 crore in the corresponding quarter of 2019-20.
In another development, Reliance Power on June 13 approved a preferential issue of 59.5 crore equity shares and 73 crore warrants worth Rs 1,325 crore to its promoter firm Reliance Infrastructure.
Factors that fuelled the rally
Sustained inflows by foreign institutional investors (FIIs) coupled with liquidity measures taken by the Reserve Bank of India (RBI) and the government have aided the domestic equity market during the past five quarters.
Better than expected financial results in the December and March quarter coupled with robust participation by retail investors in the market further boosted the sentiment.
Analysts believe that the lower interest rate environment coupled with the pandemic which has resulted in people spending more time in their homes might have tilted individuals towards the stock market.
Data available with depository National Securities and Depository showed that overseas investors have poured more than Rs 2.10 lakh crore in the domestic equity market since March 24, 2020. Meanwhile, the BSE Sensex scaled its fresh all-time high of above 53,000-mark amid hopes that Covid-19 cases have peaked out and unlocking will lead to economic activity recovering sharply due to pent-up demand.
Performance of Nifty stocks
More than 50% of stocks in the Nifty pack doubled over 100% since March 24. Shares of auto major Tata Motors rallied the most 394% to Rs 340. It was followed by JSW Steel (up 368%), Tata Steel (up 328%), Hindalco Industries (up 323%), Grasim Industries (up 276%) and IndusInd Bank (up 224%).
Of late, Nifty companies together posted profit growth of over 110% in the latest quarter ended March 31 on 21% growth in sales.
Top Nifty gainers
|Share price (Rs)|
|Tata Motors Ltd.||339.55||68.60||394.97|
|JSW Steel Ltd.||689.50||147.35||367.93|
|Tata Steel Ltd.||1,165.00||271.75||328.70|
|Hindalco Industries Ltd.||375.95||88.80||323.37|
|Grasim Industries Ltd.||1,507.00||400.40||276.37|
|IndusInd Bank Ltd.||1,012.70||312.35||224.22|
|Adani Ports and Special Economic Zone Ltd.||712.30||232.50||206.37|
|Tata Consumer Products Ltd.||757.75||249.40||203.83|
|Mahindra & Mahindra Ltd.||794.10||269.25||194.93|
|Bajaj Finserv Ltd.||12,488.75||4,496.30||177.76|
|Axis Bank Ltd.||761.35||303.15||151.15|
|Bajaj Finance Ltd.||6,074.65||2,485.80||144.37|
|State Bank Of India||428.75||183.35||133.84|
|Ultratech Cement Ltd.||6,922.15||3,011.95||129.82|
|HCL Technologies Ltd.||995.50||441.95||125.25|
|Reliance Industries Ltd.||2,104.30||934.21||125.25|
|Divi’s Laboratories Ltd.||4,250.90||1,919.85||121.42|
|ICICI Bank Ltd.||648.65||296.60||118.70|
|Bajaj Auto Ltd.||4,196.05||1,933.55||117.01|
|Tech Mahindra Ltd.||1,089.25||504.00||116.12|
|Titan Company Ltd.||1,755.45||816.25||115.06|
|Larsen & Toubro Ltd.||1,522.90||708.30||115.01|
|Sun Pharmaceutical Industries Ltd.||672.20||335.05||100.63|
Stocks to buy?
Angel Broking is bullish on a couple of stocks from across the sectors amid the ongoing rally on Dalal Street. For instance, we like Jindal Steel and Power (JSPL) from the metal space with a target price of Rs 550.
The company is one of India’s largest iron and steel companies with an installed capacity of 8.6 million tonnes at the end of FY2021. The global steel cycle has turned around due to the normalisation of demand in developed economies due to the reopening of the economies. This has led to a significant increase in demand for steel which in turn has led to record high international steel prices.
JSPL has also posted a very strong set of numbers for Q4FY21 due to firm domestic prices and availability of low cost iron ore from Sarda mines. The company has also been deleveraging its balance sheet with net debt expected to come down to around Rs 12,600 crore by FY2022 which should lead to a rerating in the stock.
We also prefer players like Ashok Leyland (target price: Rs 145), Carborundum Universal (TP: Rs 660), Crompton Greaves (TP: Rs 480), Escorts (TP: Rs 1,573), Federal Bank (TP: Rs 110), GNA Axles (TP: Rs 550), IDFC First Bank (TP: Rs 77), Shriram City Union (TP: Rs 2,100) and Apollo Hospitals (TP: Rs 3,700).
A handful of stocks eroded investors’ wealth amid the ongoing bull run. Little-known stock Panth Infinity slipped 84% since March last year. It was followed by Jump Networks (down 79%), Ozone World (down 77%), Svaraj Trading and Agencies (down 74%) and BC Power Controls (down 73%).
Stocks that fell over 50%
|Share price (Rs)|
|Panth Infinity Ltd.||9.71||61.65||-84.25|
|Jump Networks Ltd.||10.14||47.80||-78.79|
|Ozone World Ltd.||17.95||78.95||-77.26|
|Svaraj Trading & Agencies Ltd.||4.08||15.85||-74.26|
|B.C. Power Controls Ltd.||3.87||14.55||-73.40|
|Suncare Traders Ltd.||0.71||2.55||-72.16|
|Otco International Ltd.||4.20||14.60||-71.23|
|Sagar Productions Ltd.||2.57||8.46||-69.62|
|VMV Holidays Ltd.||8.81||27.25||-67.67|
|Mitshi India Ltd.||16.20||46.05||-64.82|
|Vikas Proppant & Granite Ltd.||2.61||7.28||-64.15|
|Darjeeling Ropeway Co Ltd.||4.46||12.10||-63.14|
|Artemis Electricals Ltd.||50.75||131.40||-61.38|
|Yes Bank Ltd.||13.67||35.05||-61.00|
|Bhakti Gems & Jewellery Ltd.||24.45||61.40||-60.18|
|Hi-Tech Winding Systems Ltd.||5.07||12.55||-59.60|
|Shree Nidhi Trading Co Ltd.||1.66||3.65||-54.52|
|Regency Fincorp Ltd.||13.06||27.65||-52.77|
|Radix Industries (India) Ltd.||34.55||70.15||-50.75|
|Future Lifestyle Fashions Ltd.||75.10||151.55||-50.45|