- Date : 08/02/2022
- Read: 5 mins
Wondering what 2021 had in store for stocks? Here's a list of the best stocks with the best returns.
Investing in the stock market presents an opportunity to earn potentially higher returns on your investment than some of the best bank FDs. Stock market investments allow you to compound your money over time and accrue wealth for various life goals. If you invest in the stocks of a stable company and hold them for a considerable period of time, you could make a fortune for yourself from the highest dividend paying stocks.
Though the equity market has been facing a tough time over the last couple of weeks – not just in India but across the world – the markets did not upset long-term investors this year. The benchmark index Sensex delivered 20.76% gains in the previous year, which is far more than what was seen in most other Asian markets such as China, Japan, Hong Kong, etc. Meanwhile, some Indian stocks rewarded investors with impressive returns of nearly 400% this year!
Wondering which were the highest dividend paying stocks in India? Check out the top stocks of the year that yielded the highest returns in 2021 so that you can rejig and hone your investment strategies. These are a combination of midcap and large cap stocks.
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1. Trident Group
This company offered the best returns in 2021 (a whopping 395%) and is one of the top performing stocks. Based in Ludhiana, Trident is one of the largest players in India’s textile space. With two major segments – textile and paper – the company’s combined net profit grew by 121% in the September quarter to Rs 234 crore. The government’s approval of the production-linked incentive (PLI) scheme with incentives worth Rs 10,683 crore for the industry further bolstered textile manufacturing and exports.
2. Adani Transmission
This holding company specialises in power distribution and power generation. It plans to set up 20,000 km of transmission lines by 2022. It owns, manages and maintains over 18,500 circuit km of transmission lines with a total transformation capacity of over 38,600 MVA (megavolt amperes). This high-growth company is on Nifty 100 with 322% one-year return and a market capitalisation of Rs. 2,00,0435. Its share price was Rs.1772 per share as of 27 December 2021.
3. Poonawala Fincorp
This Pune-based non-banking financial company (NBFC) is run by Adar Poonawala, also the CEO of Serum Institute of India (the company behind the Covishield vaccine). Its shares surged by 431% in 2021. It reported a 150% increase in its consolidated net profit at Rs 95.5 crore in the September quarter on reduction in credit and interest costs. The company is planning to raise its assets under management (AUM) to Rs 45,000 crore by 2025, which is almost three times the current level of Rs 15,275 crore.
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4. Gujarat Fluorochemicals
Of late, electric vehicles (EVs) have become increasingly popular. Accordingly, the demand for their batteries has gone up. This chemical manufacturing company is now foraying into new-age businesses such as chemicals for EV batteries, hydrogen fuel cells, solar panels, and more. It announced a capital expenditure of Rs 2,500 crore for battery inputs in the next three financial years. What’s more, its profits have soared by 162% to Rs 207.15 crore as of September 2021. Its stock value rallied from ₹577 to ₹2,478 earning investors a returns of 329%!
5. Angel One
Previously known as Angel Broking, this company is one of the leading broking firms in India. Its shares have been performing well, as more and more people are interested in investing in stocks with each passing day. The company’s client base jumped by 146% in November 2021, and it reported an 80% jump in its consolidated profit. It recorded 843% gain in the past one-year rising from ₹164.75 to ₹1390.
6. Indian Energy Exchange
IEX is a premier energy exchange provider in the country. The growth in economic activity has spurred demand for electricity in recent times. The company reported strong earnings in the second quarter and also announced bonus shares in the ratio 2:1. Its stock value recorded 185.89% gain in the past one-year rising from ₹153.32 to ₹235.80.
7. Happiest Minds
Shares of Happiest Minds Technologies have given stellar returns to investors rising 285% in 1 year. This stock has outperformed BSE Sensex by over 250 percent and has been witnessing higher investor participation. This IT firm’s stock clocked an 11% growth in revenue for the year ending. By the second quarter its revenue grew to Rs 274 crore while its profit grew by 30%.
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8. KPIT Technologies
The company’s stock climbed 88% in the last two months after it raised the revenue growth outlook for FY22 from 18% to 20%. The robust demand environment and the strong order inflow contributed to its increased gains. It also reported a net 140% jump in its profit to Rs 65 crore for the September quarter.
9. JSW Energy
This company is engaged in various areas of power such as electricity generation, trading, and transmission. It is one of the top private power-producing companies in the country. Its stock traded at Rs 66.80 when the year began and it has given 355% returns to rise to Rs 304 this year.
10. Rattan India Enterprises
This mid-cap stock from one of the most futuristic companies surged in demand thanks to the growth in electric bikes and the push provided by the government towards EV adoption. This, along with the current demand for EVs, has worked in favour of the company’s stock. It recorded 600% gain in the past one-year rising from ₹6.80 to ₹47.6.
Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.