multibagger stocks: Somersault action! 631 stocks give multibagger returns since Covid, 34 part of Nifty50

Exactly 3 years ago, the Nifty50 had plunged 10% and dropped to 7,500-odd level as the government’s decision to impose a lockdown to curb the spread of Covid-19 pandemic smashed the bulls on Dalal Street.

But 3 years later, the 50-stock index has managed to give handsome returns to the bulls and so have several stocks.

Since March 24, 2020, when Nifty 50 tested its 4-year low of 7511 points, the index has risen 2.3 times and is now trading around 17,000-odd levels.

An analysis of stock performance since Covid showed that a whopping 631 stocks have given more than multibagger returns in 3 years.

For analysis purposes, ETMarkets considered companies with a minimum market capitalization of Rs 1,000 crore.

Of these 631 stocks, 34 stocks belong to the benchmark Nifty 50 index. These include names like Reliance Industries, Adani Enterprises, Adani Ports and SEZ, State Bank of India, ITC, Bajaj Auto, Infosys, Tata Motors, Bajaj Finserv, Larsen & Toubro, Titan Co, HDFC Bank, and many others.

In the midcap space, the list found names such as Vodafone Idea, India Cements, Godrej Consumer Products, Glenmark Pharmaceuticals, Havells India, M&M Financial Services, Ambuja Cements, PNB Housing Finance, L&T Technology Services, IRCTC, LTIMindtree, Vedanta, Tata Power. These stocks have risen over 100-500% since March 2020.

Similarly, there are a plethora of stocks in the smallcap segment which have given up to a staggering 7788% returns over the last three years.

About 61 smallcap stocks have given more than 1000% returns, and these include names like KPIT Technologies, PTC Industries, Titagarh Wagons, Globus Spirits, Olectra Greentech, Jindal Stainless, Shree Renuka Sugars, Poonawalla Fincorp, Tanla Platforms, Tejas Networks, Tata Teleservices (Maharashtra), and CG Power and Industrial Solutions.

What should investors do?

While several stocks have given handsome returns on a 3-year basis, the market momentum has lost steam over the last 6 months due to several headwinds such as global rate hikes, inflation risks, banking crisis, and geopolitical tensions.

However, given that the outlook for India remains bright, market experts recommend investing in quality stocks and those companies which are domestic growth-oriented.

“This is India’s decade and we will see our investments in India yield rich returns. Anyone not invested in Indian equities is likely to miss out big time,” said Ram Kalyan Medury, founder and CEO of Jama Wealth.

Medury believes that sectors that glue into the Indian consumption and manufacturing trend are likely to do well.

Given that Nifty 50 valuations have seen a decent correction over the last 6 months, Vivek Goel of Tailwind Financial Services finds banking and financials very attractive and they are his top picks.

“Relative to pre-covid valuations, banking stocks are still trading at reasonable levels along with a sound asset quality,” Goel said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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