- Date : 27/06/2022
- Read: 3 mins
Best performing stocks over the last 1 year
The recent volatility in the stock markets took most market participants by surprise. The US Federal Reserve has increased the policy rates in the last few months. The bond yields have jumped, and the stock prices have come down. India was not untouched because of the volatility in the USA. The Nifty50 has lost 15% from its peak in October 2021. The Nifty SmallCap 100 index has lost 30% from its peak. Nifty Midcap100 has also lost 20% from the peak.
Related: 4 Strategies For Handling Extreme Market Volatility
This means that the markets have faced a lot of volatility in the last few months. But what if we told you that there are some stocks which have outperformed this volatility and, in fact, made a significant amount in the last year. I am sure you will be surprised. Here is the last one-year return of these outperformers vis-à-vis the Nifty50 index.
Surprised by the outperformance! Let us discuss each stock:-
1) Tejas Networks- It is an optical, broadband and data networking products company. It was founded in 2000 and had headquarters in Bengaluru. The telecom equipment stocks have performed well in line with the PLI scheme introduced by the Department of Telecommunications (GOI). The scheme facilitates design-led manufacturing with incentives of Rs 4000 crores. In the last year, the stock has given returns of 151.7%.
2) Borosil Renewables- It is an Indian glassware company based in Mumbai. It was founded in 1962. The current chairman is Pradeep Kheruka. In a conversation with CNBC TV-18, the CEO has said that the demand is expected to quadruple in the next couple of years. The company is targeting the doubling of capacity by September this year. The stock has run on Dalal Street with a 145.3% return in the last year.
3) Gujarat Fluorochemicals- It is an industrial refrigerant manufacturer founded in 1987. It is one of the largest producers of chloromethane, refrigerants and polytetrafluoroethylene. The speciality chemicals business has had a dream run on the bourses. The companies in the sector are performing well because of the huge export opportunity created in the light of supply chain disruptions due to the pandemic.
4) Trident- The group is a global conglomerate spanning businesses in home textiles, paper and chemicals. It was founded in 1990. The company is witnessing huge growth, especially in the home textiles and paper segment. It has an annual revenue of Rs 6800 crores.
5) Chennai Petroleum- It is a subsidiary of the Indian Oil Corporation which is under the ownership of the Ministry of Petroleum and Natural Gas of the government of India. The company headquarters are in Chennai. The Singapore GRMs (Gross Refining margins) have increased to $25.2 a barrel. This has led to strong margins for the firm. The stock has been one of the best performers on the bourses.
Related: Diversify your equity portfolio by investing in stocks overseas
Conclusion
The volatility in the last few months was mainly due to the increase in policy rates globally. Also, the FIIs have exited the markets over the last few months. But despite the challenges, some stocks have been outperforming the markets because of the superior business cycle. You should consider adding these stocks to your portfolio.
Related: Warren Buffet Investment Tips - Invest Like the World’s Greatest Investor
The recent volatility in the stock markets took most market participants by surprise. The US Federal Reserve has increased the policy rates in the last few months. The bond yields have jumped, and the stock prices have come down. India was not untouched because of the volatility in the USA. The Nifty50 has lost 15% from its peak in October 2021. The Nifty SmallCap 100 index has lost 30% from its peak. Nifty Midcap100 has also lost 20% from the peak.
Related: 4 Strategies For Handling Extreme Market Volatility
This means that the markets have faced a lot of volatility in the last few months. But what if we told you that there are some stocks which have outperformed this volatility and, in fact, made a significant amount in the last year. I am sure you will be surprised. Here is the last one-year return of these outperformers vis-à-vis the Nifty50 index.
Surprised by the outperformance! Let us discuss each stock:-
1) Tejas Networks- It is an optical, broadband and data networking products company. It was founded in 2000 and had headquarters in Bengaluru. The telecom equipment stocks have performed well in line with the PLI scheme introduced by the Department of Telecommunications (GOI). The scheme facilitates design-led manufacturing with incentives of Rs 4000 crores. In the last year, the stock has given returns of 151.7%.
2) Borosil Renewables- It is an Indian glassware company based in Mumbai. It was founded in 1962. The current chairman is Pradeep Kheruka. In a conversation with CNBC TV-18, the CEO has said that the demand is expected to quadruple in the next couple of years. The company is targeting the doubling of capacity by September this year. The stock has run on Dalal Street with a 145.3% return in the last year.
3) Gujarat Fluorochemicals- It is an industrial refrigerant manufacturer founded in 1987. It is one of the largest producers of chloromethane, refrigerants and polytetrafluoroethylene. The speciality chemicals business has had a dream run on the bourses. The companies in the sector are performing well because of the huge export opportunity created in the light of supply chain disruptions due to the pandemic.
4) Trident- The group is a global conglomerate spanning businesses in home textiles, paper and chemicals. It was founded in 1990. The company is witnessing huge growth, especially in the home textiles and paper segment. It has an annual revenue of Rs 6800 crores.
5) Chennai Petroleum- It is a subsidiary of the Indian Oil Corporation which is under the ownership of the Ministry of Petroleum and Natural Gas of the government of India. The company headquarters are in Chennai. The Singapore GRMs (Gross Refining margins) have increased to $25.2 a barrel. This has led to strong margins for the firm. The stock has been one of the best performers on the bourses.
Related: Diversify your equity portfolio by investing in stocks overseas
Conclusion
The volatility in the last few months was mainly due to the increase in policy rates globally. Also, the FIIs have exited the markets over the last few months. But despite the challenges, some stocks have been outperforming the markets because of the superior business cycle. You should consider adding these stocks to your portfolio.
Related: Warren Buffet Investment Tips - Invest Like the World’s Greatest Investor
