When it gives, the Indian stock market does so with both hands.
Data shows over 150 companies in the Nifty500 index more than doubled investor wealth in last three years January 2015. Among them, three – Minda Industries, Indiabulls Ventures and Rain Industries – swelled investor wealth up to 1,000 per cent, which means an investment of just Rs 10,000 made on January 2, 2015 would have become over Rs 1 lakh on January 3, 2018.
Auto component maker Minda Industries topped the chart with a gain of 1,010 per cent, as the stock jumped to Rs 1,257 as of January 3, 2018 from Rs 113 on January 2, 2015. NSE benchmark Nifty advanced 24 per cent to 10,443 from 8,395 during the same period.
Minda has plans to participate in the electric vehicles space. “We will play a very active role in the electric vehicle and electric vehicle components segments when the time comes. Already, we have separate teams working on various components within the organisation. They are in touch with various OEMs for collaboration. As and when the time comes for production and joint development, we will be fully geared to grab those opportunities,” Sudhir Jain, Group CFO, Minda Industries, told ETNow in an earlier chat.
Brokerage IIFL says Minda Industries, through its new products, is expected to see significant increase in content per vehicle supplied.
“We see a strong 20 per cent revenue CAGR during FY17-20E. During the same period, OPM can expand by 20 basis points, translating into a PAT CAGR of 36 per cent. In spite of capex and investments to acquire group holdings, the debt-to-equity (D/E) ratio of the company is likely to be comfortable. RoE and RoCE would be more than 25 per cent in the near term,” the brokerage said.
Next in line was Indiabulls Ventures. Investors received 973 per cent returns on the stock since January 2015, as it soared to Rs 259.65 from Rs 24.20. The company acts as a sharebroker of the National Stock Exchange and BSE, besides offering depository and related services.
With a 922 per cent rally, Rain Industries – a favourite of value investors Mohnish Pabrai and Dolly Khanna – managed to bag third place on the list. The scrip surged to Rs 438 as of January 3, 2018 from Rs 42 on January 2, 2015.
Khanna held 2.04 per cent stake in the company as of September 30, 2017, while Pabrai’s The Pabrai Investment Fund II and Pabrai Investment Fund 3 held 3.79 per cent and 4.83 per cent, respectively.
Brokerage Motilal Oswal has a ‘buy’ rating on Rain Industries with a target price of Rs 492.
Among others, shares of Avanti Feeds, Caplin Point Lab, Dalmia Bharat, Vakrangee, Aegis Logistics, Navin Fluoro, APL Apollo, Escorts and Sterlite Technologies surged between 500 per cent and 700 per cent in last three years.
On the other hand, Videocon Industries, Religare Enterprises, IOB, Oriental Bank, UCO Bank, Adani Enterprises and Just Dial proved major wealth destroyers, retreating over 50 per cent in the same period. #KhabarLive