In 45 trading sessions, investors get 41% returns from Gujarat Inc

AHMEDABAD: Gujarat Inc has helped investors rake in the moolah and how! As the market capitalization (m-cap) of top Gujarat corporations rose as high as 41% since April 1, investors earned handsome returns in merely 45 trading sessions.
According to BSE data, stocks of top corporates of Gujarat have performed well. Companies like Adani Enterprises, Adani Ports, Adani Green Energy, Zydus Lifesciences, Astral and Torrent Pharma posted a sizeable rise in m-cap since the start of the fiscal year 2023-24. Analysts believe these corporations have strong positioning. According to stock market analysts, Nifty has surged 7.11% whereas Sensex increased by 6.44% since April 1 to June 5.
During this period, Gujarat-based corporates outperformed the market indices. For instance, Astral Limited posted a 41% rise in its stock prices, and its m-cap crossed Rs 50,000 crore yet again.
Explaining the trend, Hitesh Somani, a city-based stock market analyst said, "Gujarat companies' stocks are trading strongly in the current bull run of the Indian equity markets. Companies from the state have performed well and the sharp rise in their stock prices reflects investor confidence in these entities."
On the other hand, Adani Group companies - Adani Enterprises and Adani Power - posted 39% and 35% growth respectively. Adani Group has recorded its highest ever EBITDA at group portfolio level (combined all group companies) of Rs 57,219 crore, achieving a 36% growth over the previous fiscal year.
Gunjan Choksi, director of a stock broking firm, said, "Gujarat corporates outperformed market indices since the beginning of the current fiscal year. For instance, Astral reported an impressive 41% rise in its stock price, thanks to an outstanding annual revenue growth of 17%, healthy pre-tax margin of 12%, good ROE of 16%, and a reasonable debt to equity ratio of 1%.
Similarly, Torrent Pharma saw a rise of 17% in its share prices, indicating its robust financial position with a handsome 11% annual revenue growth, significant pre-tax margins of 19%, and exceptional Return on Equity of 20%. Against this, Zydus Lifesciences' stock price rose by a modest 5%; however, the company's excellent financial position with its debt-free status, 12% annual revenue growth, and good pre-tax margin of 15% is encouraging for its investors."