Sensex has leaped from 50k to 56k in only seven months. The market rally was boosted by recovery in macroeconomic numbers, consistent buying by retail investors, good earnings and increased pace of vaccination. On January 21, 2021, the index touched the 50K mark for the first time and it scaled a lifetime high of 56,118 yesterday.
According to data from Prime Database, the holding of retail investors – defined as those whose shareholding value is up to Rs 2 lakh – touched an all-time high of 7.18% in the June quarter. This was pegged at 6.96% in the quarter ended March 31, 2021.
In its journey, crossing the 10K mark took the most time (5,942 sessions) followed by 30K (1,820 sessions), 40K (1,042 sessions). The quickest was 40K-50K which was achieved in just 415 sessions. The index took the longest period of nearly 5,942 sessions to scale its first 10K mark since it started its journey in 1979.
In 2020, the index gained 15.75% despite falling to its multiyear low in March when coronavirus threat roiled the Indian equity market. The 30-share index closed at a record high of 47,751 on the last trading day of 2020.
Amid the ongoing market rally, a handful of companies have more than doubled investors' money so far in 2021. Happiest Minds Technologies, Raghav Productivity Enhancers, Balaji Amines, Tata Steel and Firstsource Solutions have been among the best performers that turned into multibaggers in 2021.
As Warren Buffett rightly said, "Price is what you pay. Value is what you get.”
Let us take a look at some of the top performers of 2021 so far!
Happiest Minds Technologies
The multibagger stock has surged from Rs 339.5 to Rs 1,432.5 mark so far in 2021 - yielding around 321.5% return in this period. Shares of the Bengaluru-based company ended 123% higher at Rs 371 against its issue price of Rs 166 on BSE on its listing day. On the last day of bidding on September 9, 2020, IPO of the IT services firm was subscribed 150.98 times.
With a market capitalisation Rs 21,038.20 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
The company reported a net profit of Rs 35.73 crore for the quarter ended June 2021 compared to a profit of Rs 50.18 crore in the year-ago period. Revenue from operations grew 38 per cent to Rs 244.61 crore in the June-ended quarter against Rs 177.02 crore a year ago.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.30 times. Institutional investors have decreased their stake by 4.2% over the previous quarter and collectively hold 10.25% of the company. Also, it noted that the valuation is very expensive right now.
Raghav Productivity Enhancer
Shares of Raghav Productivity Enhancers Limited have delivered more than 600 per cent return to its shareholders in the last 12 months and has risen 223.5 per cent since the beginning of this year.
Ace investor Rakesh Jhunjhunwala is all set to invest nearly Rs 31 crore in the mining and minerals company Raghav Productivity Enhancers Limited.
Raghav Productivity Enhancers Limited said it would issue 6,00,000 Unsecured Compulsory Convertible Debentures (CCD’s) for Rs 30.9 crore by way of a preferential allotment on a private placement basis to Rakesh Jhunjhunwala.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.34 times. Also, the technical trend has improved from Mildly Bullish on July 5, 2021, and the stock is technically in a Bullish range now and has generated 75 per cent return since then. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST, OBV and DOW. However, it noted that the valuation is very expensive right now.
The company reported a standalone profit of Rs 4.28 crore for the quarter ended June 2021. Profit in the year-ago period stood at Rs 0.58 crore. Revenue from operations zoomed 127 per cent to Rs 20.61 crore in the June-ended quarter against Rs 9.07 crore a year ago. Earnings per share has increased to Rs 3.94 in June 2021 from Rs 0.58 in June 2020.
Share of Balaji Amines has delivered 267.5% return in 2021 so far. The stock has delivered 323.85% return in the last one year and has zoomed 1051% in the last 5 years.
With a market capitalisation of over Rs 11,000 crore, the share of Balaji Amines stands higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.62 times. Also, along with generating 449.92% return in the last 1 year, the stock has outperformed BSE 500 in the last 3 years, 1 year, and 3 months.
The technical trend has improved from Mildly Bullish on July 20, 2021, and the stock is technically in a Bullish range now and has generated 21 per cent return since then. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST. However, it noted that the valuation is very expensive right now.
The company reported a net profit of Rs 90.38 crore for the quarter ended June 2021. Profit in the year-ago period stood at Rs 32.96 crore. Revenue from operations grew 16 per cent to Rs 450.68 crore in the June-ended quarter against Rs 222.91 crore a year ago. The EPS has increased to Rs 27.90 in June 2021 from Rs 10.17 in June 2020.
The Tata Group stock has gained 133% since the beginning of this year and has rallied 245% in the last 12 months.
"Sharp reduction in iron ore prices, is increasing the profitability of Chinese players in a weakening demand environment. Chinese production cuts may allow some support to the steel prices, but may not arrest its decline. With steel prices expected to creep down, Q1FY22 miss in deleveraging doesn’t augur well adversely impacting risk reward. We maintain HOLD on Tata Steel, noted ICICI Securities.
The company posted a consolidated net profit of Rs 9,768.34 crore for June quarter 2021-22. In the year-ago period, the company incurred a net loss of Rs 4,648.13 crore.
Koushik Chatterjee, Executive Director and Chief Financial Officer said: "Our consolidated financial performance for the quarter was exceptionally strong on the back of strong underlying business performance and buoyant market conditions. The company has achieved the highest ever quarterly consolidated EBITDA of Rs 16,185 crore."
The midcap stock has gained 100% on a year-to-date basis. With a market capitalisation of over Rs 14,000 crore, the share stands higher than 5 day, 50 day, 100 day and 200 day moving averages but lower than 20 day moving averages. It has gained 266% in the last 12 months and more than 350% in the last 5 years.
According to MarketsMojo, the company has a low Debt to EBITDA ratio of 1.18 which shows that the company has a strong ability to service debt. The technical trend has improved from Mildly Bullish on August 12, 2021. The stock is technically in a Bullish range now and multiple factors for the stock are Bullish like MACD, Bollinger Band, DOW, OBV and KST. Also, the company has high institutional holdings at 27.05%. Their stake has increased by 2.29% over the previous quarter.
"Firstsource Solutions Limited continues to witness tailwinds in Mortgage (added 4 clients in Q1) segment which are likely to drive the refinancing volumes in the near-term. The continued low interest rates and elimination of market adversity fee of 50bps by Federal Housing Finance Agency are likely to aid the mortgage business growth in ensuing growth," said Dolat Capital.
"We expect sequential growth of 1% in revenues, that should help it achieve its growth guidance band. Also we expect slight decline in OPM at 11.9%, as we expect some impact from discretionary cost normalisation," added the brokerage house.
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