Mazagon, Varun Beverages among top wealth creators in FY23
2 min read . Updated: 30 Mar 2023, 09:57 PM IST
PremiumReturns generated by the five top companies are at 107-173% over the year even as the Nifty 500 declined by around 4% in FY23
MUMBAI : Defence -focused Mazagon Dock Shipbuilders, Varun Beverages, Karur Vysya Bank, UCO Bank and Finolex Cables have generated outsized returns for investors in the current financial year, making them Nifty 500’s star performers for the year.
Returns generated by the five companies are at 107-173% over the year even as the Nifty 500 declined by around 4% in FY23. Nifty 500 represents the top 500 companies based on their full market capitalization from the eligible universe.
The five worst-performing stocks which eroded investor wealth from 60-90% include adtech firm Brightcom Group, Tata Teleservices Maharashtra, cloud communications specialist Tanla Platforms, Gland Pharma and data-driven tech firm Dhani Services.
Analysts expect the top five gainers to continue to outperform in the new fiscal and are particularly bullish on VBL, Mazdock and Finolex.
“Varun Beverages is holding well and continuing its strength with outperformance to the entire FMCG sector," said Chandan Taparia, vice president (technical and derivatives research) at Motilal Oswal Financial Services.
“It remained resilient at the time of market decline which clearly indicates about its relative strength. One can continue to be positive for further 13-15% move in the counter after the recent consolidation."
“FinCab is making higher top—higher bottom on a weekly scale and continuing its winning streak even after market volatility. The stock geared up in the last two months from ₹535 to 847 and any small decline could again start the next leg of rally towards ₹950-1,000 zones."
With defence being a main theme, shipbuilder Mazagon Dock could head toward the ₹750 zone if it manages to hold the ₹580 support. Rajesh Palviya, VP, derivatives and tech research at Axis Securities, said Varun Beverages and Finolex would continue to “outperform" as they are “domestically driven."
“While all these companies will continue to do well, Varun and Finolex will boom thanks to stress on infra and housing and as hotter than usual summer raises the thirst for carbonated soft drinks," he said. He, however, added that Nifty 500 could see a 3-4% further downtick, given selling pressure by FPIs amid margin pressure on companies in a rising rate cycle.
“We are seeing 75% of Nifty 500 companies trading below their 200 day moving averages. I expect value buying to commence if the index dips another 3-4% from the current level," he added.On the worst performers , Palviya said that monthly charts showed no sign of reversal of the trend , which continues to remain down.
Capital line data shows that mutual fund holdings in Karur Vysya Bank increased by 4.56% QoQ in December 2022. Similarly, FPI holdings in Varun Beverages also increased by 1.41% QoQ in the same month.