Biggest wealth creators of FY22: These stocks turned Rs 10,000 to up Rs 3 lakh

Bulls stayed in the driver seat on Dalal Street in FY22 despite volatility due to sustained selling by overseas investors, the war between Russia and Ukraine and rising inflation concerns, among others. As a result, the market capitalisation of BSE-listed firms jumped by nearly Rs 60 lakh crore to around Rs 263.91 lakh crore on March 30, 2022 from Rs 204.31 lakh crore on March 31, 2021.  

Following the bullish trend in the market, some 566 stocks from across the sectors soared more than 100 per cent on BSE since the start of the financial year 2022. We excluded penny stocks, some of which also delivered impressive gains too.

With a rally of 3,381.71 per cent, Cosmo Ferrites emerged as the top gainer in the list. Shares of the company climbed to Rs 609.30 on March 30,2022 from Rs 17.50 on March 31 last year. This means an investment of Rs 10,000 has now turned to Rs 3.48 lakh at present. Overall, the benchmark BSE Sensex gained 18.53 per cent during the same period, while broader indices including the BSE Midcap and Smallcap gained 19.11 per cent and 36.22 per cent, respectively.

Data further highlighted that players like Xpro India, Automotive Stamping and Assemblies, Alogquant Fintech, National Standard (India), Lloyds Metals and Energy and Tata Teleservices (Maharashtra) soared between 1,000 per cent and 1,850 per cent in FY22 till March 30.

While sharing his top themes for FY23, Rahul Shah, co-head of research, Equitymaster said, “From a value investing standpoint, I would prefer themes that have underperformed so far and where valuations are attractive from a risk-reward standpoint. So, from that perspective, auto and pharma is the space where the opportunities are visible. Good quality PSU stocks may also continue to do well.”

On the other hand, Gaurav Dua, head-capital market strategy, Sharekhan by BNP Paribas added that in an inflationary environment, the sector or stocks with relatively better pricing power and healthy balance sheet tends to outperform the markets.

“We expect IT services, pharma, real estate and certain commodity companies to give decent returns over the next one year. On the other hand, some of the interest rate-sensitive sectors like autos, banks, infra companies can underperform in the same period. Also, we expect sustain pressure in the broader markets,” Dua said.

In the broader space, other players like Kwality Pharmaceuticals, Radhika Jeweltech, Available Finance, Lotus Chocolate Company, Ritesh Properties, Nakoda Group of Industries, Gita Renewable Energy, Sadhana Nitro Chem, Parnax Lab, Veer Global Infraconstruction, Gorani Industries, Nandan Denim and Shivalik Bimetal Controls also surged between 500 per cent and 1,000 per cent in the financial year 2022.

For stock-specific investors, Sumit Pokharna, VP fundamental research, Kotak Securities is positive on Reliance Industries (RIL). “We are like BPCL because of the recent price hikes and it is also a potential divestment candidate. Infosys is our next top pick as it is the best bet to play India’s IT growth story with strong revenue visibility,” he said.

While sharing his advice with investors, Manish Jain, fund manager, Ambit Asset Management said, “We would like to believe that equities remain the most favoured investment destinations if the aim is to beat inflation comprehensively over the next few years. We would advise investors to not be afraid and buy on weaknesses from a 3-year perspective and there is a lot of money to be made. We would advise investors to pick up good and clean companies with a strong growth trajectory in the current correction. We would expect BFSI, discretionary consumption and IT to do well.”

Among the other major gainers, Waaree Renewable Technologies, Arihant Capital Markets, GRM Overseas, Khaitan Chemicals, Vishnu Chemicals, Yasho Industries, Darshan Orna, Lyka Labs, Dynamic Cables, Share India Securities, Globus Spirits, Sportking India and Punjab Alkalies & Chemicals also gained over 350 per cent during the past 12 months.

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