5 stocks that soared up to 11,500% in 5 years could make you crorepati
BSE benchmark Sensex surged 85 per cent in last five years remained, but several stocks outside the index jumped manifold.
The best was Indo Count IndustriesBSE -3.04 %, a smallcap stock that surged 11,419 per cent between 2012 and 2017, rising from a meagre Rs 1.57 on June 20, 2012 to Rs 180.85 on June 20, 2017.
An investment of Rs 1 lakh in the stock back in 2012 would have become Rs 1.15 crore today. Indo Count Industries manufactures textile products.
For the financial year ended March 31, 2017, the company reported an 8 per cent drop in net profit at Rs 232 crore against Rs 251.31 crore reported for the year-ago period. However, net sales increased 4 per cent on a year-on-year basis to Rs 2,152.82 crore.
“The next three years look quite positive with thkind of government and stable policies we have had. India is well positioned in the cotton space,” Indo Count Industries ED KK Lalpuria told ETNow in an interview last month.
The macro indicators in the consuming countries such as the US and Europe are growing at 4 per cent because of a rise in consumer base due to population growth and a change in lifestyle. The behaviour pattern is also changing, with people decorating their homes much better. “We have a big opportunity here as fafar as our sector is concerned,” he said.
CK Narayan, Founder, Chart Advise, says, “IndoCount Industries has actually gone through a bit of a correction over the past five to six sessions, and it looks set to revive. There are trend-revival signals are at Rs 180 and one can buy for targets of Rs 186-187 with a stop at Rs 176,” he said.
Shares of Avanti FeedsBSE -0.42 % have risen over 5,000 per cent in last five years. The scrip jumped from Rs 22.31 to Rs 1,316.65, as , as company witnessed steady growth in top line and bottom line.
It reported over 30 per cent YoY rise in net profit and net sales in FY17.
Among others, shares of 8K MilesBSE -1.12 %, Can Fin HomesBSE -3.28 % and Marksans PharmaBSE -0.84 % surged 4,153 per cent, 3,244 per cent and 2957 per cent between June 2012 and June 2017 on NSE.
8K Miles reported a whopping 163 per cent rise in bottom line at Rs 104.15 crore for the year ended March 31, 2017 against Rs 39 crore reported for last year. Can Fin Homes has seen a 50 per cent YoY rise in net profit in the same period.
On the other hand, Marksans Pharma posted 88 per cent YoY drop in net profit at Rs 9.52 crore from Rs 78.51 crore reported for the same period last year.
Housing finance is emerging as a clear winner in the past couple of years and that story should continue, says Rahul Shah, Associate VP for Equity Advisory GRP, Motilal Oswal FinancialBSE -4.26 % Service.
“I have been bullish on Can Fin Homes for quite some time, but the stock now looks a little expensive. But given the kind of growth, fabulous quarterly numbers and strong management guidance, the sector as a whole and the stock in particular are poised to deliver good returns,” Shah told ETNow in an interview.
Equirus Securities is bullish on Avanti Feeds and sees the stock at Rs 1,560 level by September 2018. “We have slightly increased our target multiple to 24 times (from 22 time , as the company should soon see a re-rating thanks to an RoE of 42 per cent, good net cash balance sheet and strong earnings growth visibility,” the brokerage said.
Besides these, 34 stocks from the BSE500 index have surged between 1,000 per cent and 2,500 per cent while 47 stocks have advanced between 500 per cent 1,000 per cent in these five years. They include Dalmia Bharat (up 2,456 per cent), La Opala RGBSE 2.23 % (up 2,331 per cent), KRBLBSE -0.46 % (up 2016 per cent) and KPR Mills (up 1,968 per cent).
MMTCBSE 0.18 % stood top loser in the index and eroded over 90 per cent of investor wealth during this period. It was followed by Videocon IndustriesBSE 4.94 % (down 88 per cent), JP Associates (down 79 per cent), UnitechBSE 4.15 % (down 76 per cent), Hindustan CopperBSE -1.57 % (down 74 per cent) and Jindal SteelBSE -1.31 % (down 71 per cent).
The BSE Sensex jumped from 16,896 on June 20, 2012 to 31,297 on June 20, 2017.