Retail investors love lesser-known counters at Dalal street but a few of them have rewarded them with multibagger returns since last Valentines’ Day. A handful of BSE-listed companies have surged between 100 and 290 per cent in the last one year, where retail investors have increased their stake.
According to data from Ace Equity, as many as 10 companies have delivered multibagger returns in the last one year (from February 14, 2022 to February 13, 2023), where retail investors have increased up to 500 basis points (bps) in the last one year.
In this study, investors with a maximum investment of up to Rs 1 lakh in the particular company are considered as retailers. Shareholdings for the December 2022 quarter (Q3FY23) and December 2021 quarter (Q3FY22) are taken into account for the report, being the latest one for the given period.
The list is topped by Apar Industries which has surged about 286.81 per cent to Rs 2,315.45 on Monday since last year’s Valentine’s Day at Rs 598.60. Retail shareholding in the company has increased to 9.78 per cent in December 2022 quarter from 9.14 per cent in December 2021 quarter.
Apar’s focus towards value added products and exports business will drive strong topline and profitability in the long run, said Prabhudas Lilladher, who has maintained a buy rating on the stock with a revised target of Rs 2,260, which has already been hit.
It is followed by Rama Steel Tubes, which has surged 163 per cent to Rs 36.45 on Monday from Rs 13.84 on February 14, 2022. The company had recently announced a bonus in 4:1 ratio. Retail investors’ holding in the company increased 363 bps to 15.89 per cent as on December 31, 2022, which was 12.26 per cent on December 31, 2021.
TCPL Packaging (153 per cent up) Vadilal Industries, (148 per cent up) and Manaksia (120 per cent) also turned multibaggers in the last one year as retail investors increased their holding of the company between 37 and 137 basis points during the given period.
Sterling tools also jumped more than 115 per cent in the last one year and retailers holding in the company increased 1.29 per cent to 14.80 per cent in Q3FY23. Varun Beverages, bottler and distributor for Pepsico, saw an increase of only 6 bps in retail shareholding. The stock was up 111 per cent in the last one year.
Sterling Tools maintained a conservative capital structure with low gearing levels and comfortable coverage indicators, said HDFC Securities. It expects company’s Revenue, EBITDA and PAT to grow over FY22-FY25E, led by strong growth in EV business, share of specialized fasteners. It has initiated coverage with a target price of Rs 401 and Rs 425 in next 2-3 quarters.
Keynote Capitals has buy rating for Varun Beverages with a target price of Rs 1,461, whereas brokerage firm Sharekhan has re-initiated its coverage on the stock with a positive view of an upside potential of 25 per cent to Rs 1,633.
KPI Green Energy saw an increase of 491 bps in retail shareholding to 18.57 per cent as on December 31, 2022. The scrip gained 109 per cent since it’s close on February 14, 2022.
PSU stocks including Rail Vikas Nigam (RVNL) and Garden Reach Shipbuilders & Engineers (GRSE) were other multibaggers, which gained up to 105 per cent in the one year. Retail shareholding in these to state-owned companies increased up to 144 bps in the last 12 months.
In its report released a month ago, IIFL Securities had a target price of Rs 130 on RVNL, suggesting an upside of 88 per cent from its previous close. HDFC Securities also pegged the stock at Rs 86.5 by the end of 2023 in its report released in January 2023.
On January 11, ICICIDirect Research gave a ‘buy’ rating on the stock with a target price of Rs 630 on the GRSE, whereas ICICI Securities sees the stock at Rs 390 with a ‘sell’ call.
(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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