These well-known multibaggers are down over 50%; more pain ahead?

Some of the well-known multibaggers of the previous bull run are down in the dumps amid the ongoing correction in the domestic equity market. Data showed that at least 39 stocks, which rallied more than 500% since Covid lows, have eroded over 50% of investors’ wealth since October 2024.

Waaree Renewable Technologies, which advanced 87,244% from March 2020 to September 2024, retreated 70% in less than five months till February 18, 2025. Shares of NGL Fine-Chem, Rajoo Engineers and Kirti Industries declined 71%, 70% and 69%, respectively, from October 1, 2024-February 18, 2025. Shares of Rajoo Engineers delivered more than 11,500% return to investors during March 2020 and September 2024.

The benchmark equity index BSE Sensex tanked 10% since October 1, 2024. On the other hand, broader indices such as the BSE Midcap and BSE Smallcap declined 19% and 22%, respectively, during the same period. Market watchers believe that unabated selling by foreign institutional investors, lower-than-expected Q3 results, falling rupee and US tariff fears dented sentiment on Dalal Street.

According to Emkay Global Financial Services, Q2FY25 earnings season was disappointing, with single-digit PAT growth for the Nifty and BSE500. This triggered another round of downgrades, though less severe than in Oct-24.

“We expect the market to stay under pressure through this quarter, but to recover from Q1FY26 as earnings stabilise and global stresses ease. We see the Nifty in a buy zone at 22,500, with discretionary, healthcare, and telecom our key overweight sectors,” Emkay Global Financial Services said in a report.

After rallying more than 1,000% from Covid lows, shares of Adani Green Energy also declined 58% to Rs 898.20 on February 18, 2025, from Rs 1,903.10 on September 2024. ADC India Communications, Sadhana Nitro Chem, Marsons, Sterling and Wilson Renewable Energy, Universus Photo Imagings, Digjam and Noida Toll Bridge Company also slipped more than 55% since October 2024.

Coming back to other major losers, Swelect Energy Systems, Automobile Corporation of Goa, Hercules Hoists, Peninsula Land, Duncan Engineering, Jai Corp, RS Software (India), De Nora India, Saraswati Commercial (India), Bajaj Hindusthan Sugar, Electrosteel Castings, Voltamp Transformers and Palred Technologies also eroded more than 50% of wealth during October 1, 2024, and February 18, 2025.
 

Sharing his view on the market outlook, Ajit Mishra, SVP, Research, Religare Broking said, “The bias is likely to remain negative until we see some decisive sign of reversal and reclaim 23,400 level. On the downside, we are eyeing 22,700-22,800 zone as immediate support and its break would prompt further decline.” Mishra is positive on Reliance Industries, Dalmia Bharat and Bajaj Finance.