As the 2019 Lok Sabha elections enter their final lap, with polling for only one of the seven phases left, all eyes are now on the outcome, which will be known on May 23.
The equity market is volatile ahead of election results outcome, with the mid-and-small-cap indices down 9 per cent in past one month, while the broader S&P BSE500 index slipped 6 per cent and the benchmark S&P BSE Sensex down 5 per cent.
Thus far in CY19, the S&P BSE Sensex has risen 4 per cent, while the S&P BSE500 index has remained flat. However, there are 20 stocks from the S&P BSE 500 index which have outpaced the market by surging 61 per cent thus far in CY19. These stocks gave multi-bagger returns in the previous two election calendar years - 2009 and 2014.
Heidelberg Cement, Cera Sanitaryware, HSIL, Somany Ceramics, Blue Star, KRBL, Kalpataru Power Transmission and JK Lakshmi Cement are the among the 13 stocks that have gained over 10 per cent so far in CY19.
Interestingly, of these 20 stocks, three companies are each from cement and sanitaryware manufacturing sectors. The list includes stocks from the S&P BSE 500 index, which account for nearly 93 per cent of the total market capitalisation of listed companies on the BSE.
DCM Shriram, the top gainer in the list, rallied 61 per cent so far in CY19. The company reported a six-fold jump in the consolidated net profit at Rs 293 crore in March quarter of FY19. It had posted a profit of Rs 51 crore during the same quarter last year.
The management said the chemical business, which accounted 36 per cent of total revenue, continues to record strong performance with continuous volumes growth and steady margins.
SRF hit a new high of Rs 2,814 on Wednesday, May 15, and has surged 38 per cent in CY19. The company reported 54 per cent year-on-year (y-o-y) jump in consolidated net profit at Rs 191 crore in March quarter on the back of healthy revenue growth. The consolidated revenue grew 29 per cent to Rs 2,072 crore on y-o-y basis.
Bajaj Finance hit a new high of Rs 3,298 on Friday, up 6 per cent on the BSE, gaining 18 per cent thus far in CY19. The company recorded a strong 57 per cent year-on-year (Y-o-Y) growth in net profit at Rs 1,176 crore in March quarter. The company’s net interest income, or NII, grew 50 per cent at Rs 3,394 crore on YoY basis. Analysts, on an average, had expected profit of Rs 1,062 crore and NII of Rs 3,271 crore for the quarter.
Bajaj Finance's assets under management (AUM) rose 41 per cent to Rs 1.16 trillion, against analysts' expectations of 40 per cent over the previous year quarter.
In the previous election calendar year 2014, the stock rallied 121 per cent, while in 2009, it zoomed 408 per cent. Since January 2008, the share price of Bajaj Finance has skyrocketed 52,249 per cent from level of Rs 6.30, as compared to 288 per cent surge in the S&P BSE Sensex.
| Company | Election calendar year* | Price on BSE in Rs | ||||
| Name | 2009 | 2014 | 2019# | 31/12/2008 | 16/05/2019 | %chg |
| Bajaj Finance | 407.6 | 121.1 | 17.82 | 6.31 | 3111.80 | 49215 |
| Vinati Organics | 422.7 | 124.9 | 9.46 | 12.79 | 1804.95 | 14012 |
| Cera Sanitaryware | 173.0 | 153.7 | 21.01 | 32.90 | 2862.80 | 8602 |
| KRBL | 234.6 | 206.2 | 17.00 | 6.39 | 329.95 | 5064 |
| Shree Cement | 318.4 | 117.3 | 12.78 | 460.40 | 19412.85 | 4117 |
| Somany Ceramics | 165.9 | 165.0 | 12.22 | 9.06 | 366.95 | 3950 |
| SRF | 179.4 | 294.0 | 38.36 | 73.25 | 2765.15 | 3675 |
| KEI Inds. | 133.3 | 314.3 | 8.62 | 13.76 | 389.80 | 2733 |
| Honeywell Auto | 141.5 | 152.0 | 7.85 | 891.30 | 23710.15 | 2560 |
| Sonata Software | 164.0 | 209.4 | 9.45 | 16.10 | 332.50 | 1965 |
| JK Lakshmi Cem. | 302.0 | 413.3 | 15.65 | 17.50 | 340.60 | 1846 |
| DCM Shriram | 101.0 | 184.4 | 60.76 | 30.75 | 543.05 | 1666 |
| Greenply Inds. | 272.7 | 120.5 | 6.45 | 9.32 | 146.95 | 1477 |
| Guj Fluorochem | 106.6 | 223.0 | 5.30 | 63.10 | 946.35 | 1400 |
| Heidelberg Cement | 201.7 | 117.9 | 17.82 | 14.93 | 179.15 | 1100 |
| Greaves Cotton | 292.1 | 125.0 | 13.24 | 14.50 | 134.75 | 829 |
| HSIL | 168.8 | 233.3 | 10.22 | 29.50 | 257.75 | 774 |
| Kalpataru Power | 296.3 | 140.6 | 15.02 | 55.14 | 451.35 | 719 |
| Blue Star | 154.2 | 108.1 | 16.75 | 152.30 | 723.40 | 375 |
| NCC | 131.0 | 300.4 | 6.92 | 43.88 | 94.20 | 115 |
| S&P BSE Sensex | 81.03 | 29.89 | 3.67 | 9647.31 | 37393.00 | 288 |
| S&P BSE 500 | 90.23 | 36.96 | 0.38 | 3596.85 | 14596.00 | 306 |
| *Stock returns in election calendar years | ||||||
| #Returns till May 16, 2019 | ||||||
| Source : CapitalinePlus | ||||||