Up to 3,230% return! 59 stocks that turned multibaggers in FY23
Synopsis
Among other stocks, defence PSU stock Mazagon Dock Shipbuilders has rallied around 180% during the year amid government's increasing thrust on domestic manufacturing and defence spending.
K&R Rail Engineering has also given a mind-boggling return of over 1,900% in FY23. The list of top multibaggers also includes Rajnish Wellness, Knowledge Marine & Engineering Works, Hardwyn India, Shilchar Technologies, Mufin Green Finance, Axita Cotton,
Imagicaaworld Entertainment and Apar Industries.
"Most of them are penny stocks and so any trade is risky. Traders should follow a strict stop loss. Sometimes these stocks don't give opportunity to cut the trade at stop loss point," said Ravi Singhal, CEO, GCL Broking.
Stocks Recommendations
Among other stocks, defence PSU stock Mazagon Dock Shipbuilders has rallied around 180% during the year amid government's increasing thrust on domestic manufacturing and defence spending.
Nifty PSU Bank, Nifty FMCG, Nifty CPSE and Nifty Auto have been among the top performing sectors in the last one year while Nifty IT, Nifty Consumer Durables and Nifty Metal have been the top sectoral losers.
What should investors do?
Nifty's 12-month forward PE valuation has corrected to 17.3, largely in line with its 10-year average but below its 5-year average of 18.3.
With a low likelihood of any expansion in the valuation multiples, earnings delivery will remain key to driving market returns in FY24, says Kunal Vora, Head - India Equity Research, BNP Paribas India.
He is bullish on financials and IT services for FY24. "We find financial services’ valuation reasonable, considering improving credit growth and stronger & cleaner balance sheets. As for IT services, while the sector might face some near-term pressures on recessionary concerns, particularly in the US and Europe, we think it trades at a decent valuation post the c25% correction from its peak of January 2022 and has a strong medium- to long-term growth potential," Vora said.
Credit Suisse said it doesn't rule out some further correction given current global developments. "We remain cautious in the near term but would use any sharp corrections as a buying opportunity as we expect a good recovery in Indian equities in the second half of the year. Our view is premised on India’s improved corporate fundamentals, political stability, and positive medium-term economic growth outlook," it said.
The global brokerage has suggested investors to stay defensive in the current market environment and focus on sectors with high domestic exposure as the global outlook remains unfavorable.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)