Up to 725% return: These stocks defied gravity on D-Street since April

Bears have made a huge dent in investors’ portfolios so far in the ongoing financial year. However, as many as 46 stocks on Dalal Street managed to defy gravity to rally over 100 per cent since April 1. Overall, market sentiment remained dampened during the period due to sustained selling by foreign institutional investors and rising concern over inflation.


The benchmark BSE Sensex retreated over 10 per cent to 52,541 on June 15, 2022 from 58,569 on March 31, 2022. On the other hand, smallcap players like S&T Corporation and Abhinav Capital Services soared 725 per cent and 531 per cent during the same period.


Other players include Impex Ferro Tech (up 415 per cent), Madhuveer Com 18 Network (up 397 per cent), Gallops Enterprises (up 380 per cent), Zenith Steel Pipes (up 367 per cent) and Sadhna Broadcast (up 273 per cent) stood among other majors gainers in the list. Broader indices such as the BSE Midcap and BSE Smallcap declined 9 per cent and 11 per cent.


Commenting on midcaps and smallcaps, Prateek Agrawal, business head and CIO, ASK Investment Manages said, “An increase in the cost of money in various ways puts pressure on valuations as does lesser availability of money. Central banks around the world are tightening and some asset price correction is to be expected.”


“However, a lot is going in favour of the midcaps at this juncture. If we look at the investment themes such as broad basing of global supply chains, formalisation of the economy, offshoring, beneficiaries of the Production Linked Incentive Scheme (PLI) initiative by the government, and home improvement most of the beneficiaries are mid-cap companies. Make more indigenously, a higher focus on domestic manufacture of new-age defense equipment and diversification of global supply chains should be expected to see sustained stronger focus going forward and the current weakness in the market does provide a good opportunity to understand and evaluate these spaces better,” he added.


Data further highlighted that stocks like Mehta Housing Finance, Chennai Ferrous Industries, Indianivesh, Standard Industries, Shankar Lal Rampal Dye-Chem, Beekay Niryat, Cindrella Financial Services, Gujarat Cotex, Dhanlaxmi Fabrics, Sai Capital, Mid India Industries, Gorani Industries, Ramchandra Leasing & Finance, Trans Financial Resources, Chennai Petroleum Corporation, Titan Intech, NCC Blue Water Products and Sylph Technologies also surged between 150 per cent and 257 per cent during the same period.


Amid the ongoing correction in the equity market, brokerage firm Motilal Oswal Financial Services finds more value in largecaps than midcaps given the relative valuation equation. “We reiterate earnings delivery is crucial for markets to hold, in an adverse milieu of volatile and challenging macro,” it said.


Motilal Oswal Financial Services prefers Reliance Industries, Infosys, ICICI Bank, SBI, Bharti Airtel, Titan Company, Ultratech Cement, M&M, Hindalco, Godrej Consumer, and Apollo Hospitals in the largecap space. On the other hand, it is positive on Cholamandalam Investment and Finance Company, Macrotech Developers, Ashok Leyland, L&T Technology, Jubilant Foodworks, APL Apollo Tubes, GR Infraproject, Angel One, Sapphire Foods, VRL Logistics and Lemon Tree Hotel in the midcap and smallcap space.


Among the remaining stocks, Tree House Education & Accessories, Mangalore Refinery And Petrochemicals, Essar Securities, Quest Softech (India), Hemang Resources, Akashdeep Metal Industries, Mehta Integrated Finance, Growington Ventures India, Lesha Industries, IFL Enterprises, Rajnish Wellness, Hardwyn India, Lords Chloro Alkali, Veeram Securities, Quadrant Televentures, Hindustan Motors and CWD also rallied over 100 per cent since April 1.


In a company-specific development, a buzz about the comeback of the iconic Ambassador car with an all-new electric model has rejuvenated Hindustan Motors shares in the past few trading sessions. Shares of the company jumped to Rs 24.30 on June 15 from Rs 12.08 on March 31, 2022.


Also read: Sensex, Nifty rise post Fed rate hike; how long will the relief rally last?