AHMEDABAD: With sensex scaling lifetime high, equity investors are in for a happier Diwali. However, a few Gujarat-based companies have even outperformed the benchmark equity index to deliver handsome returns since last Diwali, which fell on October 27, 2019.
Despite the tough economic scenario, as many as eight Gujarati firms’ stocks have yielded returns in the range of 60% to 900% since October 27 last year.
Among Gujarat’s top listed companies, Adani Green Energy Limited (AGEL) and Deepak Nitrite Limited’s shares have jumped 895% and 128% respectively. Other high return yielding stocks are Adani Enterprises Limited (96%), Infibeam Avenues Ltd (83%), Alembic Pharmaceuticals Ltd (78%), Alembic Ltd (71%), Cadila Healthcare Ltd (69%) and Gujarat Gas Limited (67%).
Meanwhile, sensex has offered 11% return rising from 39,250.2 points on Diwali last year to 43,593.6 on November 11, 2020.
Pharma companies post strong growth amid pandemic
Adani Green has given an unprecedented return since last Diwali. Acquisition of solar energy assets, better than expected standalone results in last two quarters and receiving big solar project from SECI (Solar Energy Corporation of India) have fuelled the company’s stock, increasing the shareholders’ value manifold,” said Bhavik Patel, senior research analyst, Tradebulls, a Ahmedabad-based stock broking firm.
“Deepak Nitrite’s share has more than doubled from the Diwali festival last year on the back of its profit growing at CAGR of 63% in the last five and the company’s focus on debt reduction,” said Vanesh Panchal, director at Beeline Broking.
The Vanguard Group’s recent purchase of Deepak Nitrite shares in bulk has also helped turn investor sentiment positive in the company.
Stating that Adani Enterprises has planned capital expenditure of Rs 50,000 crore over the next five years with major focus on airports business, Bhavik Patel, added, “The company’s focus on airports, roads and coal is expected to be fruitful in the longterm. Hence, the company’s stock has outperformed its peers since last Diwali.”
With pandemic creating demand for Covid-19 related drugs and products and easing of USFDA compliance amid the pandemic has helped pharma firms such as Cadila Healthcare, Alembic Pharma and Alembic Ltd post strong growth, said stock analysts.