Macro-economic headwinds such as demonetisation, GST rollout, a volatile rupee and bumpy crude oil have failed to push bottom line figures of these companies into the negative.
Data shows 17 companies from the list have delivered over 1,000 per cent return in last five years, whereas 43 have surged between 500 and 1,000 per cent and 119 between 100 and 500 per cent. Stocks of 73 others have risen some 100 per cent since November 2012. Only six stocks have moved southward in this period.
Avanti Feeds tops the list. The stock has surged over 8,500 per cent to Rs 2,704 as of November 14, 2017, from Rs 30.90 on November 15, 2012.
If the industry grows at a stable pace and the company does not let its competitive edge to lose, there is no reason why one should not hold this stock, says Donald Francis, a well-known Bangalore-based value investor. Avanti has 43 per cent market share in the feeds business and aims to take this to 50-55 per cent in next two years.
“If the company continues to grow at 25-30 per cent compounded annually, which Avanti has been, the business may end up doubling in 2-3 years. But whether the stock doubles in the same period or not will depend on the consistency with which this company performs,” Francis told ETMarkets.com.
Caplin Point Lab is the second biggest gainer on the list, rising 4,235 per cent in last five years.
It was followed by Indo Count Industries (up 3,467 per cent), Indiabulls Ventures (up 2,572 per cent), Minda Industries (up 2,359 per cent) and KRBL (up 2,310 per cent).
Brokerage firm KR Choksey has an ‘accumulate’ rating on Minda Industries with a target price of Rs 1,117.
“We remain positive on Minda Industries because of its tieup with global brands, innovative product portfolio and large order inflow. Also, consolidation of the group business and inorganic growth put the company on a stronger footing. Besides, sustained improvement in business should lead to higher revenue and profitability going forward. The company’s ongoing restructuring process will lead to better financial strength and enable company to optimize resources resulting in elimination of overlapping activities,” the brokerage said.
CanFin Homes and Ceat delivered over 1,500 per cent returns during the same period, while La Opala RG, NBCC, Bajaj Finance, Ajanta Pharma, Finolex Cables, Eicher Motors, Vakrangee, Natco Pharma and KPR Mill advanced between 1,000 per cent and 1,400 per cent in the same period.
CanFin Homes recently reported another quarter of healthy financials with a 27 per cent YoY rise in net interest income and 20 basis points margin expansion to 3.64 per cent. Pre-provisioned profit and net profit grew 31 per cent and 36 per cent, respectively.
The company’s loan book grew 20.7 per cent to Rs 14,456 crore. Asset quality remained largely stable with gross and net NPAs at 0.40 per cent and 0.18 per cent, respectively, as of September 30, 2017. Centrum has an ‘outperform’ rating on the stock with a target price of Rs 527.
Edelweiss Securities is positive on Eicher Motors. It believes the domestic demand is reasonably high driven by shifting consumer preference from commuter segment to over 250cc motorcycle.
The launch of new 650cc bikes marks the beginning of a new chapter for RE as it will offer a strong product in the global mid-motorcycle market. Hence, successful launch is extremely critical for company. Edelweiss has a ‘buy’ rating on Eicher with a target price of Rs 34,945.
Brokerage Motilal Oswal has managed to give handsome return to investors too. The stock has risen 960 per cent to Rs 1,323.75 as of November 14, 2017 from Rs 124.85 on November 15, 2012.
Astral Poly, Symphony, Britannia Industries, Aarti Industries, Sundram Fasteners, OCL India and Cera Sanitaryware jumped between 795 per cent and 1,000 per cent during the same period.
In the past 20 quarters, all of these companies have managed to post profits in their balance sheet till September 30, 2017.
However, Coal India, GMDC, NMDC, MCX, IL&FS Transportation and Reliance Power have failed to give decent returns to investors during this period despite having posted profits quarter after quarter.