Suzlon, JBM Auto, KPI Green among 15 multibagger stocks of FY24, zoom up to 210%

Bulls have been ruling the Dalal Street recently but a handful of stocks have delivered stellar returns to investors in the current financial year and have turned multibaggers. Some of these stocks are not majorly tracked or belong to lesser-known pockets, while analysts mostly see more steam left in others.

BSE Sensex has surged about 12 per cent since its close on March 31, 2023, while the broader markets have outperformed the headline peers. BSE midcap and smallcap indices have jumped about 22 per cent and 24 per cent during the ongoing financial year 2023-24 so far.

According to the market analysts, robust inflows from the overseas investors, strong quarterly earnings by India Inc, declining raw material prices, upbeat management commentary and receding fears of interest rate hikes, inflation and recession is supporting the market sentiments.

Major trigger has been the high inflow driven by foreign investors as India has the highest equity inflow amongst the emerging countries in June, said Anchal Kansal, Research Analyst at Green Portfolio PMS. "The result season has acted as cherry on the cake. We have seen companies take advantage of cooled down raw material prices and expanding operating margins."

Although corrections are anticipated in the market, long term trends in India’s growth ecosystem are positive. Robust guidance for the upcoming quarter in addition to Fed’s rate cut, later this year, would make bond yields unattractive, further increasing the flow of equities, she added.

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According to the data from Ace Equity, at least 15 companies have turned multibaggers, delivering a return of up to 210 per cent since their close on March 31, 2023, while other five gained between 95-100 per cent in the current financial year. This study does not include companies which were listed on or after April 1, 2023.

The list of multibaggers is topped by Aurionpro Solutions which has gained 211 per cent to Rs 956.95 on Friday. The stock settled at Rs 307.95 on March 31, 2023. It is followed by a Ddev Plastiks Industries which has surged 184 per cent to Rs 203.65 from Rs 71.80 between April 1 to July 7, 2023.

Patel Engineering (up 146 per cent), Jay Bharat Maruti (up 134 per cent) and Force Motors (up 126 per cent) are other key multibaggers for the current year. Majority of these stocks are smallcap counters.

Suzlon Energy has surged more than 123 per for the current financial year. Domestic brokerage firm ICICI Securities recently initiated its coverage on Suzlon Energy with a 'buy' rating with a target price of Rs 22 apiece.  "We believe Suzlon is best equipped to benefit from industry tailwinds. We expect a sharp uptick in earnings FY24E onwards," it said.

eMudhra and Bombay Dyeing have also gained 118 per cent and 111 per cent, respectively in the ongoing financial year so far.  JBM Auto, Datamatics Global Services, HPL Electric & Power, KPI Green Energy, V2 Retail, Genus Power Infrastructures and Tanla Platforms have also gained more than 100 per cent since April 1, 2023.

YES Securities was positive on eMudhra but its target price has already been hit, while Axis Securities has a buy call on Bombay Dyeing with a target price of Rs 155 and stop loss at Rs 109. "The stock strongly rebounded from its 20 and 200-daySMA; Daily weekly RSI is in positive terrain," it said.

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Titagarh Railsystems (99 per cent up), Repro India (96 per cent up), Jupiter Wagons (96 per cent up), Indian Hume Pipe Company (95 per cent up) and Mazagon Dock Shipbuilders (95 per cent up)  are also on the verge of becoming multibaggers. However, some of the stocks mentioned above have seen some profit booking in the last couple of sessions.

Antique initiated a buy rating on Titagarh Wagons with a target price of Rs 694. The brokerage firm sees the company as a jewel in the making. “The company has created a manufacturing set- up, which is difficult to replicate. It has the capacity to grow its turnover to over Rs 9000-10,000 cr over the next five years,” it said.

Jupiter Wagons is undervalued even from a price-earnings growth(PEG) standpoint and trades below 1 PEG on a 1-year forward basis. Even if we ignore the prospects of the global tender, the management expects the orderbook to stay above Rs 50 bn range – thus Jupiter wagons’ is a ;ow risk-reward bet, said Dalal & Broacha Stock Broking with a target price of Rs 209.

However, ICICI Securities maintained its 'sell' tag for Mazagon Dock Shipbuilders and pegs its value at Rs 600 apiece in its reports released in June 2023. "Its lack of order visibility offsets its near-term robust revenue estimate. As a result, we perceive unfavourable risk-reward," it said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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