High Volatile Stocks For Jan 2025 Based on Beta

Investing in high-volatility stocks can be an interesting prospect for those seeking higher returns in a shorter time frame. Volatile stocks tend to experience significant price fluctuations, providing opportunities for substantial gains. However, this also comes with the risk of significant losses. An understanding of factors contributing to volatility, such as market sentiment, company performance, and external economic factors, is important for making informed decisions.

One important metric to measure volatility in stocks is Beta. In investment terms, Beta indicates how much a stock’s price fluctuates with the overall market. In this blog, we will explore highly volatile stocks in January 2025 based on beta.

What is Beta?

In simpler terms, Beta acts as a gauge for a stock’s volatility as compared to the overall market. A Beta value of more than 1 indicates that the stock is more volatile than the market, while a Beta value of less than 1 suggests the stock is less volatile. A Beta of 0.5 means the stock is half as volatile as the market. A Beta of 1 indicates that the stock’s price moves in line with the market.

High Volatile Stocks For Jan 2025 – Based on Beta

Note: The stocks mentioned above have been selected from the Nifty 500 universe and sorted based on beta value as of January 6, 2024.

Overview of 5 High Volatile Stocks

Sterling & Wilson Renewable Energy Ltd

Sterling and Wilson Solar Ltd is one of the leading end-to-end solar engineering, procurement and construction (EPC) solutions providers globally and is also engaged in the operation and maintenance (O&M) of solar power projects. As of September 2024, the company’s unexecuted order value stood at ~₹10,549 crore as compared to ~₹8,084 crore as of Mar 2024.

Key Metrics:

• Return on Equity (ROE): -56.7%

• Return on Capital Employed (ROCE): 3.77%

Sammaan Capital Ltd

Sammaan Capital Ltd, formerly known as Indiabulls Housing Finance Ltd is registered with the National Housing Bank (NHB) and is engaged in the business of providing home loans and loans against property. During 1H FY25, the cash collections from the legacy book were at the highest level of ₹ 5,053 crore with ₹3,104 crore collected in Q2FY25. In addition, the company’s GNPA was at its lowest in 22 quarters.

Key Metrics:

• ROE: 6.56%
• ROCE: 10.1%

Poonawalla Fincorp Limited

Poonawalla Fincorp Limited is engaged in providing consumer and MSME financing, as well as General Insurance Services. During Q2 FY25, the company reported consistent growth in AUM despite moderation in STPL due to credit recalibration. In addition, it recorded the right balance of secured to unsecured mix at 51:49 with the secured mix improving by 225 bps QoQ.

Key Metrics:

• ROE: 14%

• ROCE: 10.8%

IndusInd Bank Limited

IndusInd Bank Limited is a commercial bank under the Banking Regulation Act 1949, which provides a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations. As of September 2024, the Provision Coverage Ratio stood at 70% and total loan-related provisions at 110% of GNPA.

Key Metrics:

• ROE: 15.2%
• ROCE: 7.93%

Adani Total Gas Ltd (ATGL)

Adani Total Gas Limited is engaged in the City Gas Distribution (CGD). During Q2 FY25, the company recorded an increase in CNG stations to 577 by adding 18 new stations and expanded PNG home connections to 8.93 lakh, by adding 34,468 new households.

Key Metrics:

• ROE: 20.5%
• ROCE: 21.2%

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.