Thanks to this rally, at least 41 stocks turned multibaggers in over three months, data analysed by ETMarkets showed.
For analysis purpose, companies with a market capitalisation of minimum Rs 500 crore was considered.
In the June quarter, benchmark Nifty 50 gained more than 10%, as foreign portfolio investors (FPIs) net invested a whopping $13 billion, the highest-ever inflows in the quarter in history.
Some of the prominent stocks that have given multibagger returns include Tanla Platforms, Suzlon Energy, Texmaco Railsystems, JBM Auto, Jindal Saw, Mazagon Dock Shipbuilders, Inox Wind Energy, Force Motors, and Aurionpro Solutions.
Automobile and ancillary stocks were at the forefront of the gainers’ list as investors lapped them up in anticipation of a strong FY24 amid the robust demand for passenger and commercial vehicles.
Force Motors has given about 122% returns since April and is one of the best performing auto stock in the smallcap space. Electric vehicle maker Olectra Greentech is another prominent gainer, giving more than 120% returns since April.
Among auto ancillary makers, JBM Auto stock has doubled in value in over three months, and those of Jai Bharat Maruti have soared more than 127%.
Mazagon Dock Shipbuilders has been one of the top favorites of Dalal Street investors. Shares of the public sector major have given a whopping 159% returns since April.
The stock was recently on headlines as the Defence Procurement Board cleared the deck for the acquisition of three additional Scorpene Submarines being built by the company.
Besides, the board has also cleared the acquisition of Rafale M fighter jets. These developments have propelled shares in the defence sector.
Meanwhile, wind turbine maker Suzlon Energy stock also grabbed a lot of investor interest, giving a strong 122% returns in over three months.
The company’s debt deleveraging exercise has significantly improved the outlook and the growing opportunities for wind energy further improved prospects for the wind turbine maker.
Recently, brokerage ICICI Securities initiated coverage on the stock with a “buy” rating and a price target of Rs 22.
In the month of June, the stock was among the list of top additions in the smallcap segment of mutual funds.
What should investors do?
Even after such a sharp run-up, technical analysts see room for more upside in some of the stocks, but have not completely ruled out bouts of profit booking.
Looking at the price structure of Suzlon Energy, V.L.A. Ambala of Stock Market Today said, “Let the Horse ride and allow it to get even more wild.”
In other words, Ambala believes the stock has a lot more potential and can reach Rs 20-50 or even more, in the short-term to medium-term.
Rohan Shah of Religare Broking remains bullish on Mazagon Dock stock and believes the upward momentum to continue towards Rs 1,865 levels.
Olectra Greentech is another stock that analysts remain positive on but do believe it has entered into an overbought zone.
“One should expect a pullback in it in the case of a price breakdown towards the weekly support level of Rs 1,200. I would say be a part of this bullish momentum and keep trailing at Rs 1,180,” Ambala said, and has set 1,500-1,600 as medium-term targets for the scrip.
(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 Economic Times)