IRFC, Suzlon, Hudco, Jupiter Wagons among 20 stocks that rallied up to 400% in FY24

Financial year 2023-24 ended on a strong note for equity investors, where in benchmark indices- BSE Sensex and Nifty50- scaled about 30 per cent each. Broader markets outperformed the headline indices as the BSE midcap index rallied 65 per cent, while the BSE Smallcap index surged more than 62 per cent between April 2023 to March 2024.

However, the outperformance was better seen in the broader markets, where a number of stocks delivered multibagger returns to the investors. According to the data provided by Ace Equity index, 113 stocks more than doubled investors in the BSE500 index, while 330 stocks, or 66 per cent stocks outperformed the headline indices.

The analysis of the BSE500 index, which constitutes about 95 per cent of the market capitalization of the entire BSE, suggests that 20 stocks were able to triple investors wealth or better to say delivered up to 200 per cent returns to the investors. Not being a surprise, majority of these stocks belong to PSU or railway sectors.

Robust corporate earnings, particularly those companies in the Nifty 50 index, lead to increased market capitalisation. Besides, high capital investments by the government, strong domestic economic growth, and favourable monetary policy conditions were some of the key factors that positively drove the market in FY24, said Atul Parakh, CEO at Bigul, a discount broker.

"The surge in retail investments by way of monthly SIPs, coupled with higher participation of both foreign investors and mutual funds, also fuelled market growth," he said. "Faster domestic economic growth supported various sectors and industries in India."

The two largest reasons for the market rally were sentiment of the same government coming back to power signalling stability, which fuelled confidence leading to both retail and institutional participation, said Rahul Ghose, CEO, Hedged, a trading platform "Participation from mall and midcap participation and turn around in some names that have been in a bear market for years."

The list was topped by Indian Railway Finance Corporation (IRFC), which delivered a return of 441 per cent. The stock settled at Rs 142.4 on March 28, 2024, compared to its close at Rs 26.34 on March 29, 2023. Suzlon Energy was another multibagger which rallied to Rs 40.47 from Rs 7.95, delivering a return of more than 400 per cent.

Among other multibaggers, Housing & Urban Development Corporation (Hudco), Mangalore Refinery and Petrochemicals (MRPL), Jupiter Wagons, Ircon International and REC surged 310-330 per cent during the fiscal year 2023-24.

Brokerages see more upside in some of these counters. JM Financial has a buy rating on Suzlon Energy with a target price of Rs 54 per share. Among others, Systematix Institutional Equities has a buy rating on Jupiter Wagons with a target price of Rs 474, while CLSA pegs REC's value at Rs 560 apiece with similar rating.

Kalyan Jewellers India (up 290 per cent), Cochin Shipyard (up 280 per cent), Rail Vikas Nigam (up 280 per cent), SJVN (up 270 per cent), Tata Investment Corporation (up 255 per cent), Zomato (up 255 per cent) and Bharat Heavy Electricals (up 250 per cent) are some of other wealth creators for FY24.

Global brokerage firm Citi set a target price of Rs 480 apiece to Kalyan Jewellers, while Bernstien sees Zomato at Rs 200. Domestic brokerage ICICI Direct is bullish on Cochin Shipyard with a target price of Rs 1,055 and Antique Stock broking sees BHEL at Rs 300 per share. However, JM Financial has a 'sell' call on SJVN with a target price of Rs 72.

Sobha, NBCC (India), Swan Energy, Power Finance Corporation, Apar Industries and NLC India also surged 200-240 per cent between April 2023 to March 2024. HDFC Securities gave a target price of Rs 1717 on Sobha, while Prabhudas Lilladher has suggested to accumulate Apar Industries with a target price of Rs 6,890.

Market participants believe that crude oil prices, pace and magnitude of rate cuts by the central lenders, upcoming general elections in India and regulatory scrutiny could influence market dynamics and economic stability.

Parakh from Bigul is cautiously optimistic on the Indian stock market for FY25. "However, the incremental upside of many large-cap companies that have had a solid bullish run-up in FY24 appears to be somewhat unlikely. Investors must remain watchful of macroeconomic indicators, corporate earnings growth, and market valuations as key factors of market direction," he added.