Suzlon Energy shares top 2023 BSE500 gainers, up 300%; 5 Adani stocks among worst performers

Shares of Suzlon Energy Ltd, which would be added to the BSE100 list next month, topped the gainers at BSE500 in 2023 so far, as the stock climbed 298 per cent year-to-date. While the largecap space largely delivered muted returns, at least 29 midcap and smallcap stocks from the BSE500 pack delivered multibagger returns in the ongoing calendar. One of every five index constituents delivered more than 50 per cent return; every second stock made investors richer by 20 per cent, data compiled from corporate database AceEquity suggests.

On the other hand, five Adani group stocks namely Adani Total Gas Ltd, Adani Energy Solutions Ltd, Adani Wilmar Ltd, Adani Green Energy Ltd and Adani Enterprises Ltd are among worst 10 BSE500 performers year-to-date, data showed.

In the case of Suzlon Energy, the stock surged 298 per cent to Rs 42.27 on Friday from Rs 10.61 level at the end of December 2022. The Suzlon Energy stock has recently been added to MSCI Global Standard index. Suzlon Energy shares are also in news after the renewable energy solutions provider said its S144, a 3 MW series of wind turbines saw listing from the Ministry of New and Renewable Energy (MNRE). Analysts are positive on Suzlon Energy shares as they noted that 62 per cent the current order book of 1,613MW is for 3 MW turbines, the supply of which would start in the March quarter.

Shares of Apar Industries Ltd are up 223 per cent for the year. In an October note, Prabhudas Lilladher said export of cables to US and European markets may witness volume sluggishness in the near term owing inventory de-stocking of excess inventories by distributors amid normalising supply chain.

"That said, the medium-to-long term outlook continues to remain strong for overall exports. Cables business likely to continue with its growth momentum, driven by strong growth in elastomeric cables, which is up 40 per cent-plus in H1FY24 and focus is on expanding B2C segment by enhancing distribution and geographical reach," PL said.

"We believe Apar's focus towards value added products and strong traction in exports business will continue to drive strong top line & profitability in the long run," it said.

REC Ltd and Power Finance Corporation Ltd soared 91 per cent and 180 per cent, respectively. IRCON International has climbed 180 per cent while ITI and Kalyan Jewellers India Ltd have advanced 151 per cent each this year.

Zensar Technologies Ltd, Rail Vikas Nigam Ltd, Sonata Software Ltd, Indian Railway Finance Corporation Ltd (IRCTC), Lloyds Metals & Energy Ltd, JBM Auto Ltd, Welspun Corp Ltd, Aurobindo Pharma Ltd, Angel One Ltd, SJVN Ltd and Jyothy Labs Ltd are among stocks that gained 120-145 per cent during the same period.

The second quarter results of BSE500 were healthy, thanks to strong earnings reported by companies in the energy sector.

"The impressive headline earnings (BSE 500 PAT: up 41 per cent YoY) are distorted by 171 per cent growth from Energy, with a large swing from oil PSUs. Adjusted for this, non-financials delivered 58 per cent YoY growth, while financials saw PAT growth at 21poer cent. Much of the profit growth was driven by margin improvement, as top line for Non-financials was tepid, at (0.6 per cent). One idiosyncratic feature was that the delayed festival season hurt top line growth for consumer companies," Emkay Global said.

The brokerage said BSE500 cash flows continued to strengthen. At an aggregate level, operating cash flow grew 135 per cent YoY while free cash grew 78 per cent YoY.

"The OCF/Ebitda ratio has bounced from the abysmal 38% in 1HFY23 to 88 per cent (FY23: 77 per cent), probably implying that the worst of working-capital pressures are now over. The improvement was across the board – Energy, Industrials, Consumer Discretionary, Healthcare, and Utilities all delivered better outcomes. Our read-through is that the volatility in input prices was probably the cause of stress in 1HFY23 and cash flows are now normalising," Emkay said.

Other multibaggers for the year included KPIT Technologies Ltd,CE Info Systems Ltd, Cyient Ltd, Welspun Living Ltd, Jindal Stainless Ltd, Mangalore Refinery And Petrochemicals Ltd, Birlasoft Ltd, Zomato Ltd, Polycab India Ltd and Cochin Shipyard Ltd.

Meanwhile, Adani Total Gas shares have fallen 85 per cent year-to-date and is the worst BSE500 performer for 2023 so far. It is followed by Adani Energy Solutions (down 71 per cent), Adani Wilmar (down 52 per cent) and Adani Green Energy (down 51 per cent). Adani Enterprises Ltd tanked 43 per cent during the same period.

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