STOCKS THAT DE­FIED DEMO

Financial Chronicle - - FRONT PAGE - FC BUREAU

As the po­lit­i­cal slugfest over the shock an­nounce­ment of de­mon­esti­sa­tion two years ago rages on, not many stock in­vestors are ru­ing their de­ci­sion to keep the faith in eq­ui­ties even though the bolt from the blue event had shaken In­dia Inc in many ways. An anal­y­sis shows over 40 stocks have given more than 100 per cent re­turn to stock in­vestors since the note ban in 2016.

As the po­lit­i­cal slugfest over the shock an­nounce­ment of de­mon­esti­sa­tion two years ago rages on, not many stock in­vestors are ru­ing their de­ci­sion to keep the faith in eq­ui­ties even though the bolt from the blue event had shaken In­dia Inc in many ways.

An anal­y­sis shows over 40 stocks have given more than 100 per cent re­turn to stock in­vestors since the Novem­ber 8, 2016 event. Some of these stocks are con­sid­ered di­rect ben­e­fi­cia­ries of de­mon­eti­sa­tion, though most are not.

Sur­pris­ingly, in­dus­trial man­u­fac­tur­ing com­pa­nies have won hands down in re­ward­ing stock in­vestors, though the econ­omy was up against macro chal­lenges dur­ing the last two years.

Three stocks, namely HEG, In­di­a­b­ulls Ven­tures and Graphite In­dia ral­lied more than 1,000 per cent dur­ing the two years, though their grav­ity-de­fy­ing jive had not much to do with de­mon­eti­sa­tion. HEG and Graphite In­dia have been rid­ing a global short­age in graphite elec­trodes while In­di­a­b­ulls Ven­tures has started mov­ing up af­ter it en­tered con­sumer lend­ing.

Such out­per­for­mance from a se­lect set of stocks come in the back­drop of a 27 per cent rise in the Sen­sex dur­ing the two years. As a re­sult, the mar­ket cap­i­tal­i­sa­tion of BSElisted stocks jumped by more than Rs 30 lakh crore to Rs 141.67 lakh crore from Rs 109.6 lakh crore.

Ac­cord­ing to Luc­know-based bro­ker­age Ace Eq­uity, some 44 stocks have more than dou­bled in­vestors wealth dur­ing the last two years.

Apart from the three men­tioned above, the stocks in the BSE 500 In­dex that have more than dou­bled in­vestor wealth VMart Re­tail, Venky’s In­dia, Phillips Car­bon­black. Rain In­dus­tries, Adani Trans­mis­sion, Ster­lite Tech­nolo­gies, Fu­ture Re­tail, VIP In­dus­tries, Hi­madri Spe­cialty Chem­i­cals, among oth­ers.

In the BSE Small-cap In­dex as many as 60 stocks have more than dou­bled in­vestors’ wealth, in­clud­ing Balkr­ishna In­dus­tries, Ba­jaj Elec­tri­cals, Ju­bi­lant FoodWorks, Bata In­dia, Vaib­hav Global, Shakti Pumps, NIIT Tech­nolo­gies, Radico Khai­tan and Usha Martin. In the BSE Mid-cap In­dex, four stocks-Biocon, JSW Steel, Jin­dal Steel & Power and Adani En­ter­prises-have more than dou­bled in­vestors wealth. Sur­pris­ingly, out of the 44 com­pa­nies that have re­warded in­vestors hand­somely in the last two years, nearly half are hard-core man­u­fac­tur­ing com­pa­nies and eight six are tech­nol­ogy com­pa­nies. Eight in the list are con­sumer re­tail com­pa­nies, in­clud­ing con­sumer goods man­u­fac­tures. The list has only two fi­nan­cial ser­vices com­pa­nies.

In­dus­trial man­u­fac­tur­ing com­pa­nies have won hands down in re­ward­ing stock in­vestors

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