Successful investing needs patience, discipline and the ability to control emotions. If you have these qualities then chances are high that your high conviction bet could make you richer in the domestic equity market going ahead. At least 13 stocks on the BSE have already made investors crorepati on an investment of just Rs 1 lakh during the past 10 years. Analysts are still bullish on a couple of stocks despite the enormous rally in the past.
With a rally of 275 times, HCP Plastene Bulkpack (formerly known as Gopala Polyplast) emerged as the top gainer in the list. Shares of the company jumped to Rs 660.85 on November 8, 2021 from Rs 2.40 on November 8, 2011. The company is engaged in the business of production of plastic articles for packing of goods, such as plastic bags and sacks. It is also engaged in other activities relating to finishing textiles.
HLE Glascoat is next on the list. The scrip has soared 19,955 per cent to Rs 6,869 during the past 10 years. It was followed by NGL Fine-Chem (up 19,703 per cent), Paushak (up 19,454 per cent), Alkyl Amines (up 17,116 per cent) and Caplin Point Laboratories (up 17,041 per cent). Well-known equity investor Ashish Kacholia held 1,91,602 shares, or 1.42 per cent stake, of HCL Glascoat as of September 30.
Progressive Share Brokers is positive on Alkyl Amines with a price target of Rs 4,700. The company posted a 17.38 per cent fall in net profit at Rs 54.09 crore for the quarter ended September 30. However, its revenue from operations jumped 19.71 per cent year-on-year (YoY) to Rs 348.69 crore.
The brokerage said raw material price and freight costs had a strong impact on the quarter performance. Despite the hit on its operational efficiency, the company did perform on the topline. "Alkyl Amines has few small projects in hand which are due for commissioning in the next 6 months along with the Kurkumbh plant to be on stream towards 2022. This would generate benefit to the company," Progressive Share Brokers said in its report.
It is also bullish on Paushak Ltd, with a price target of Rs 15,000. The company is one of the few companies in India (as well as globally) engaged in development and manufacturing of phosgene-based specialty chemicals that require stringent standards and regulations to be followed. The company, a part of Alembic Group, was founded in 1972 and has experience of more than three decades in phosgene chemistry.
"The new projects are largely completed and are in pre-commissioning stage and the benefits of increased throughput from additional facilities are anticipated to be seen in the balance part of this financial year, while the full impact is expected to be seen in FY22-23. Capital work in progress (CWIP) is more or less equal or that of the current PPE (property, plant and equipment), which indicates, there is potential to double the turnover in the next 3-4 years or as and when these phases of development of the plant become live," Progressive Share Brokers said.
Deepak Nitrite, Tanla Platform, Tasty Bite Eatables, Indo Count Industries, Sylam Industries, Bajaj Finance and Astral have also rallied between 10,000 per cent and 14,200 per cent during the same period.
Commenting on Bajaj Finance, brokerage Prabhudas Lilladher said, "Premium valuations are here to stay as Bajaj Finance is now perceived as a profitable fintech lender." It believes that shares of the company could hit Rs 9,092 in the next 12 months.
Overall, the benchmark BSE Sensex has gained around 245 per cent to 60,545 in the past 10 years. On the other hand, broader indices BSE Midcap and Smallcap have gained 316 per cent and 319 per cent, respectively.
While sharing his stock picking strategy, market veteran Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers, told BusinessToday.in that investors should zero in on the companies that have clean accounting, rational capital allocation over the past ten years and dominant franchises with high entry barriers.
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