Suzlon Energy, Texmaco Rail, KPI Green: 434 midcap, smallcap shares delivered over 50% return in 2023!

Midcap and smallcap stocks are ending Calendar 2023 on a high note, with at least 192 stocks doubling investor wealth and a total 434 delivering over 50 per cent return. That is out of 1,064 constituents of BSE Midcap and BSE Smallcap indices. The rally has been broad-based, thanks to a 40-44 per cent rise in the mid and smallcap indices. Risk-reward favours largecap stocks but, if history is to go by, second rung stocks may perform in tandem with the market this year, said analysts.

Shares of Jai Balaji Industries Ltd leaped 1,286 per cent this year to Rs 757 level on December 22 from Rs 54.60 crore on December 31, 2022. Aurionpro Solutions Ltd soared 534 per cent to Rs 2,170.70 from Rs 342.65 level. Inox Wind Energy Ltd (up 439 per cent), Lloyds Enterprises Ltd (up 437 per cent), Titagarh Railsystems Ltd (up 339 per cent), Avantel Ltd (up 348 per cent), Ashapura Minechem Ltd (334 per cent), HBL Power Systems Ltd (319 per cent), Inox Wind Ltd (310 per cent) and Jindal SAW (up 310 per cent) remained some of top multibaggers stocks for 2023.

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A total of 14 other stocks delivered 250-300 per cent returns. They included Zen Technologies Ltd, Magellanic Cloud Ltd, Transformers & Rectifiers (India) Ltd, Newgen Software Technologies Ltd, GE T&D India Ltd, Apollo Micro Systems Ltd, Balu Forge Industries Ltd, Nucleus Software Exports Ltd, Authum Investment & Infrastructure Ltd, Anand Rathi Wealth Ltd and Kaynes Technology India Ltd.

Other stocks in the list included Patel Engineering Ltd, Waaree Renewable Technologies Ltd, Jupiter Wagons Ltd and Suzlon Energy Ltd.

"Risk-reward ratios favour large-caps over mid & small-caps currently, and PSUs still have potential for outperformance, in our view. We remain constructive on banks, select NBFCs, real estate, and pharma. Investors with a long-term horizon can start accumulating chemicals and IT stocks on dips," said Jitendra Gohil, Chief Investment Strategist, Kotak Alternate Asset Managers.

REC Ltd, Power Finance Corporation Ltd, Chennai Petroleum Corporation Ltd, TARC Ltd, Man Industries (India) Ltd, Pearl Global Industries Ltd, Sandur Manganese & Iron Ores Ltd and Apar Industries Ltd delivered 200-250 per cent returns.

Prakash Industries Ltd, Banco Products (India) Ltd, KPI Green Energy Ltd, Neuland Laboratories Ltd, WPIL Ltd, Texmaco Rail & Engineering Ltd, The Anup Engineering Ltd and Indian Railway Finance Corporation Ltd were other stocks gaining 200-250 per cent for the year.

ICICIdirect said fourth year of the decade has always been positive with double digit return, as per decadal cycle. It expects midcaps stocks to perform in tandem with the benchmark going ahead.

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