ETMarkets analysed the performance of stocks in the June quarter, and has considered only those with a minimum market capitalization of Rs 500 crore.
At least of the 26 stocks have given multibagger returns at least once in the June quarter of the last three financial years.
These include names like BLS International, Chemcrux Enterprises, Chennai Petroleum Corp, De Nora India, Elecon Engineering, Gokul Agro Resources, Imagicaaworld Entertainment, Jupiter Wagons, Mangalore Refinery and Petrochemicals, Salasar Techno, Shree Renuka Sugars.
Even shares of the now-defunct Jet Airways gave investors multibagger returns in the June quarter of 2020.
Most of these companies have seen lower debt, improving book value per share, and zero promoter pledge, according to a SWOT analysis by Trendlyne. Besides, these companies have shown consistent growth in revenue and profits in the past few quarters, and have also seen an increase in the shareholding by FII/FPI or domestic institutions.
Meanwhile, in the June quarter of FY21 and FY22, the benchmark Sensex gained about 18% and 6%, respectively. However, in the same period of FY23, the 30-stock index slipped by 9%.
BLS International stock gained 122% in the June quarter of FY21, 40.4% in FY22, and 65.5% in FY23. In fact so far in the current quarter, the stock has net gained 5%.
The company, which provides passport, visa, and consular services for a varied range of countries, has seen consistent growth in revenue in the last four quarters. This has been driven by the strong demand for business as well as leisure travel post-reopening from COVID.
Another star performer is Apcotex Industries, as the stock has given more than 40% returns in the June quarter of the last three financial years. It has net gained about 3% so far in the current quarter.
The company is in the business of manufacturing emulsion polymers and has reported consistent growth in profits with very low debt.
Time Technoplast is another stock that has given more than 50% returns in the June quarter of the last three financial years. The positive trend continues as it has net gained 6% so far in the current quarter.
The company has seen consistent earnings growth with lower debt. Moreover, promoters have been quarter after quarter reducing their pledged stake.
From 8.18% in the June quarter of FY22, promoters’ pledged stake in the company was down to 5.41% in the March quarter of 2023, data on Trendlyne showed.
What should investors do?
The start of the current quarter has been bullish, as the Sensex has net gained close to 4% on the back of sustained buying by foreign institutional investors.
In fact, from being the worst-performing market at the start of 2023, India became one of the best-performing emerging markets in April.
Since April, FIIs have net bought Indian equities worth more than $2.5 billion.
“FPIs are likely to continue buying in India. The appreciation in rupee and good Q4 results will aid in increasing capital flows to India,” said V K Vijayakumar, chief investment strategist, Geojit Financial Services.
Apart from good earnings, another positive trigger is that after the RBI, the US Federal Reserve has given some indications of a pause in interest rate hikes.
In the backdrop of these factors, market analysts think that the bias for the market remains overall positive.
“If your asset allocation is adequate and you are invested, you should stay there. I think the market direction will remain in a range, but with an upward bias. It’s not likely to be an explosive run, but in one direction,” said independent market analyst Anand Tandon.
(Data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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