Shares of 20 wealth-creating firms yielded 5-29 times returns since CY13 end.
In a year when foreign inflows into Indian equities were at the lowest level since 2011 and the Sensex has had a poor show in four years, 20 BSE-listed companies — having market value of at least Rs 1,000 crore — have bucked the trend by yielding at least two-fold returns in each of the last two years.
The companies include Welspun India, KRBL, Sequent Scientific, Indo Count Ind, Force Motors, Ricoh India, Can Fin Homes, Gayatri Projects, and JMT Auto, among others. Shares of these firms have yielded returns in the range of 5-29 times since the end of CY13, Bloomberg data showed.
One-third of these 20 multi-bagger stocks belong to the BSE 500 universe, with four — KRBL, Can Fin Homes, Gayatri Project and Aegis Logistics — having touched their all-time highs this quarter.
In contrast, the Sensex has fallen 6.2% so far this calendar year after rising 30% last year. Even foreign portfolio investments have dissipated through the year with net inflows now at $2.7 billion after inflows peaked at $8.56 billion in April. Overseas funds have invested more than $16 billion in each of the last three years, Bloomberg data showed.
Data showed that a majority of these wealth-creating stocks belonged to textiles, pharmaceuticals, and automobile sectors. Auto companies dominate the list with 40% presence, companies from construction and software also featured in the list, data showed.
Force Motors, whose shares rose nearly three times last year, further doubled in value in 2015. The stock touched record high in October this year.
Indo Count Industries tops the list as its shares grew 29 times in the last two years, driven by strong business growth in the last three quarters. The company’s market capitalisation has increased to R4,327 crore from R135.19 crore as on quarter ending December 2013.
Experts said that favourable government policies and low cost have made some domestic textile companies more competitive in the export market, which further benefitted these textile companies due to a weak rupee.
JMT Auto as well as Gayatri Projects’ shares have grown four-fold each. “Road project awards have gathered momentum in FY16, with $5.7 billion of contracts awarded by NHAI till September 2015.