Unitech, Waaree Renewables, Jai Balaji among 21 stocks that delivered over 750% returns in FY24

More than 1,000 stocks on the BSE have more than doubled investors’ wealth in the ongoing financial year until March 7. However, a couple of stocks have changed fortunes with superlative returns. With a surge of 3,769%, Archana Software is the top gainer on the list. Shares of the company jumped to Rs 139.30 on March 7, 2024, from Rs 3.60 on March 31, 2023. The return came at a time when broader markets outpaced the benchmark equity indices. The BSE MidCap and BSE SmallCap indices rallied 65% each during the same period. On the other hand, the 30-share Sensex pack gained 26 since March 31, 2023.

Jai Balaji Industries is next on the list, registering a gain of 2,547% in the ongoing financial year. Avance Technologies (up 2,371%), SG Mart (up 1,889%), and Prime Industries (up 1,809%) stood among other major gainers. For the nine months ended December 2023, Jai Balaji Industries reported a profit of Rs 606.59 crore against the Rs 70.91 crore profit posted by the company in the same period a year ago. SG Mart posted a profit of Rs 27.42 crore during April-December 2023 against a profit of just Rs 0.33 crore in the corresponding period last year. Net profit of Prime Industries and Avance Technologies stood at Rs 11.04 crore (up 1,381% YoY) and Rs 1.01 crore (up 113% YoY), respectively, for the nine months ended December 2023.

Sharing his views on the company’s growth prospects, Aditya Jajodia, Chairman, and Managing Director of Jai Balaji Industries, in the latest investor presentation, said that the firm faced tough challenges in the last 6-7 years, which have now been resolved with the commitment, hard work, faith, and resilience of the management, business associates, and stakeholders. He further said that Jai Balaji 2.0 aims to transition into a high-margin business, and the company plans to achieve the same by the lowest cost capex for capacity enhancement, economies of scale, operational efficiencies, and focusing on specialized products. Meanwhile, the company is now aiming to become debt-free in the near term.

Data further highlighted that Frontier Capital, Integrated Industries, Insolation Energy, Empower India, Rudra Ecovation, and Rajnish Retail also rallied over 1,000% in FY24 till date. In its annual report FY2022-23, Empower India said, “The company is likely to benefit from the emerging trends in digitalization and innovation in IT products. The company is well-positioned to take advantage of the market opportunity with its strong product portfolio, which endeavours to enable organizations to leverage innovations in various technologies, and the company has strategized new offerings pertaining to this.”

Innovative Ideals And Services (up 987%), Electrotherm (up 924%), Unitech (up 923%), Sudal Industries (up 918%), Cupid (up 878%), Thomas Scott (up 870%), Waaree Renewable Technologies (up 861%), Dhruva Capital Services (up 783%), RS Software (up 754%), Garg Furnace (up 753%) stood among other major gainers. The bottom line of Waaree Renewable Technologies grew 117% YoY to Rs 93.92 crore during April-December 2023.

Asked if it is time to stay cautious on broader markets, Neelesh Surana, Chief Investment Officer, Mirae Asset Investment Managers (India), said, “Businesses characterised by high cyclicality, asset heaviness, debt burdens, lack of cash flow, low ROEs, and sub-par management raise concerns about the quality of the rally in the broader segment.”

Vineet Arora, Managing Director, and Head of Asset Management at NAV Capital said, “Do thorough due diligence and don’t speculate while investing in small or micro caps. If you don’t have the stomach to take 30-40% drawdowns, stay away from this segment.”