Out of the above 19 stocks, six of them – Jupiter Wagons, Suzlon Energy, Taylormade Renewables, Centum Electronics, Integra Engineering India and Sat Industries – have given multibagger returns in FY24, shows data collated from ACE Equity.
The remaining 13 stocks which have delivered at least 25% returns in the December quarter for the last three years are Hindustan Construction Company, Lancer Container Lines, Ramky Infrastructure, Vimta Labs, Kirloskar Electric Company, Orient Green Power, Gravita India, Bharat Bijlee, Mufin Green Finance, RACL Geartech, Aptech, Gokul Agro Resources and Kabra Extrusiontechnik.
Let’s take a look at the 6 multibagger stocks:
Jupiter Wagons
The rail stock has already rallied over 300% in FY24 on the back of rising demand for wagons from the Indian Railways. In the last three December quarters, the stock has a track record of giving at least 25% return each time.
The Kolkata-based manufacturer of railway wagons, passenger coaches, wagon components and castings has planned a Rs 700 QIP to ramp up wagon manufacturing capacity, invest in new foundry plant at Jabalpur wagon facility, expand existing foundry plant at Kolkata wagon facility, and backward integration of wagon business.
“JWL will be the beneficiary of much-needed capital expenditure by the railways in procuring wagons. The company’s leading position in domestic wagon manufacturing along with its focus on growing its railway brakes and light commercial electric vehicles business will give a decent medium to long-term growth prospects (expect a 113% PAT CAGR over FY2023-FY2025E) to JWL,” Sharekhan said.
Suzlon Energy
On the back of a turnaround in the company’s fortunes led by debt reduction, a strong order book, and a return to profitability, shares of Suzlon Energy have delivered over 200% return so far in FY24. Its return profile in the last three December quarters has been impeccable at 125%, 60% and 33%.
Mutual fund data shows that Suzlon was among the top smallcap pick last month. Buyers included ICICI Prudential MF and HDFC MF.
A reverse-valuation analysis by Kotak Equities suggests that Suzlon will need to deliver 5-8 GW of annual wind turbine capacity to justify its current stock price. The government has set a target of adding 8 GW of wind capacity annually until FY2030 to meet its renewable targets.
Taylormade Renewables
The microcap stock with a market value of just about Rs 650 crore has had a stellar run not only in FY24 but also in all December quarters. in Q3 of FY21, it gave 118% return while in Q3 of FY22 the stock gained 68%. In the December quarter of FY23 also, the stock again doubled investor wealth.
Centum Electronics
Centum is one of the leading players in the industry with presence in Aerospace, Defence, Space, Transportations, Healthcare, etc. with 72% of their revenue generated from exports to Europe, UK, North America, etc with global customers like Thales, Rafael, Alstom, GE, ABB, etc.
“They have experienced significant increase in order book and are focusing on further improving on margins by increasing operational efficiency. They have observed robust growth in new multinational customers from emerging sectors like clean energy, electric vehicles, and hydrogen fuel cells,” said Arvind Kothari, smallcase manager & Founder, Niveshaay.
Integra Engineering India
Integra Engineering is another microcap with a market value less than Rs 1,000 crore which has impressed with 39%, 36% and 48% quarterly returns in the last three years.
Sat Industries
The diversified business group is engaged in various business activities such as manufacturing, education, leasing, finance, etc. The company’s subsidiary Aeroflex Industries, which has ace investor Ashish Kacholia as one of the investors, had listed on stock exchanges two weeks ago at a premium of 83% against the issue price.
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