These 4 companies have given 2X return in the past year. Should you have them in your portfolio?

The earnings did much better than what Dalal Street expected.

These companies gave 2X return in the past year

Around 13 companies in the BSE500 had twice the profits and over 50% YoY sales growth as the September earnings for the quarter came out. The earnings did much better than what Dalal Street expected. 

Fine Organic Industries

Fine Organic Industries tops the list. It is a company dealing in specialty chemicals and saw its profit grow a whopping four times. Its profits grew to Rs. 202.73 cr in Q2, and sales increased by 110% YoY. It is India's largest in the oleochemical industry and is one of the top six worldwide. Saurabh Mukherjea holds this stock in his Little Champs portfolio after seeing it rally over 79% in just one year. 

Also ReadAdani Enterprises continues its rise in the stock market. Why though?

Adani Enterprises

Gautam Adani, the billionaire's prized entity, reported a 261 percent increase in the profit for this quarter and a 189 percent increase in its sales. The stock has risen by 136 percent in one year and hardly had any analysts' coverage. 

Deepak Fertilisers 

It reported a profit of over 195 percent in one year. It means the profit more than doubled at the same time. 

Infibeam Avenues 

Infibeam avenues reported a profit of 185% in Q2 but have lost around 26% value in the past year. 

Read: Comparing returns in the past year from market-related products

What to do? 

We expect stocks with solid earnings to outperform as Nifty and Sensex hover at their record highs. Motilal Oswal believes IT, consumer, auto, and BFSI stocks are a good bet. They recommend staying away from utilities, pharma, and energy. Oswal's top picks in the large-cap segment are: 

  • Macrotech Developers
  • Apollo Hospitals
  • IndusInd Bank
  • Coal India
  • UltraTech Cement 
  • Maruti Suzuki
  • Bharti Airtel
  • ICICI Bank
  • Infosys 
  • RIL

Kotak Institutional Equities stated that Tata Motors, Sun Pharma, ONGC, L&T, Britannia, Bajaj Auto, and Axis Bank outperformed significantly in Nifty50. 

However, the valuations are still a cause of concern as the indices stand at a 10% premium to their average in the long term and a little lower than one standard deviation.

Also Read:  Are mutual fund managers focusing on large-cap stocks? Why?

Kotak's Sanjeev Prasad said that the Indian market valuations are rich, and there is little value across the sectors. He believes that the non-financial growth stocks' valuations, whether mid-cap or large-cap, are trading higher and are extremely rich than what they were in 2019. Bond yields were similar then, and he believes our country's macroeconomic position has weakened. 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

Around 13 companies in the BSE500 had twice the profits and over 50% YoY sales growth as the September earnings for the quarter came out. The earnings did much better than what Dalal Street expected. 

Fine Organic Industries

Fine Organic Industries tops the list. It is a company dealing in specialty chemicals and saw its profit grow a whopping four times. Its profits grew to Rs. 202.73 cr in Q2, and sales increased by 110% YoY. It is India's largest in the oleochemical industry and is one of the top six worldwide. Saurabh Mukherjea holds this stock in his Little Champs portfolio after seeing it rally over 79% in just one year. 

Also ReadAdani Enterprises continues its rise in the stock market. Why though?

Adani Enterprises

Gautam Adani, the billionaire's prized entity, reported a 261 percent increase in the profit for this quarter and a 189 percent increase in its sales. The stock has risen by 136 percent in one year and hardly had any analysts' coverage. 

Deepak Fertilisers 

It reported a profit of over 195 percent in one year. It means the profit more than doubled at the same time. 

Infibeam Avenues 

Infibeam avenues reported a profit of 185% in Q2 but have lost around 26% value in the past year. 

Read: Comparing returns in the past year from market-related products

What to do? 

We expect stocks with solid earnings to outperform as Nifty and Sensex hover at their record highs. Motilal Oswal believes IT, consumer, auto, and BFSI stocks are a good bet. They recommend staying away from utilities, pharma, and energy. Oswal's top picks in the large-cap segment are: 

  • Macrotech Developers
  • Apollo Hospitals
  • IndusInd Bank
  • Coal India
  • UltraTech Cement 
  • Maruti Suzuki
  • Bharti Airtel
  • ICICI Bank
  • Infosys 
  • RIL

Kotak Institutional Equities stated that Tata Motors, Sun Pharma, ONGC, L&T, Britannia, Bajaj Auto, and Axis Bank outperformed significantly in Nifty50. 

However, the valuations are still a cause of concern as the indices stand at a 10% premium to their average in the long term and a little lower than one standard deviation.

Also Read:  Are mutual fund managers focusing on large-cap stocks? Why?

Kotak's Sanjeev Prasad said that the Indian market valuations are rich, and there is little value across the sectors. He believes that the non-financial growth stocks' valuations, whether mid-cap or large-cap, are trading higher and are extremely rich than what they were in 2019. Bond yields were similar then, and he believes our country's macroeconomic position has weakened. 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

Expert Article block example

NEWSLETTER

Related Article

Premium Articles