Since last Diwali, these 14 obscure stocks have transformed Rs. 1 lakh into Rs. 1 crore. Do you own any of them?

Since last Diwali, these 14 obscure stocks have transformed Rs. 1 lakh into Rs. 1 crore. Do you own any of them?

29 Oct 2022

Since last Diwali, these 14 obscure stocks have transformed Rs. 1 lakh into Rs. 1 crore. Do you own any of them?

Despite the mediocre performance of the main equity indices since Diwali of last year, the addition of a few obscure stocks from the larger space has managed to bring some spark to investors' portfolios. Up to 14 smallcap stocks have increased by more than 1,000% since November 4, 2021, according to Ace Equity data. The Sensex and Nifty, on the other hand, have declined by around 3% over the same time period.

 

With a gain of 10,869, SEL Manufacturing was the highest earner on the list. Shares of the firm increased from Rs 6.37 on Diwali last year to Rs 698.70 on October 17, 2022. Accordingly, a Rs 1,000,000 investment placed in the stock a year ago would be worth more than Rs 1 crore right now. Kaiser Corporation did the same thing, increasing stockholders' wealth by 100 times during the same time frame.

 

The exceptional performance occurred despite the domestic equity market experiencing significant volatility as a result of the geopolitical crisis involving Russia and Ukraine, high commodity prices, the exodus of foreign institutional investors, global inflation, and the hawkish stance taken by major global central banks as a result (Fed and ECB). Up to October 17, 2022, foreign investors had sold shares totaling more than Rs 1.76 lakh crore.

 

Only a few other significant players have defied gravity: Wardwizard Foods and Beverages, Gorani Industries, KBS India, Kakatiya Textiles, and S&T Corporation.

Moving forward, market observers kept a bullish outlook on the domestic equity market, citing, among other things, good GST collections and healthy house sales figures.

 

However, tightening monetary conditions and capital outflows could act as roadblocks. Kotak Securities stated in a report, "We remain optimistic on India's growth prospects in the near term on the back of likely normalization of discretionary services spending, easing supply chain, weakening of international commodity prices, including crude, and supportive fiscal policies."

 

Stocks like SRF, Reliance Industries, Mahindra & Mahindra, Infosys, DLF, Cipla, Axis Bank, and Aegis Logistics are among those that the brokerage is positive on.

 

Note: The mention of any stocks in this article is only for informational reasons. Before taking any positions, investors and market participants should speak with their financial advisors.

 

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