Looking for a multibagger? These stocks rallied over 1,000% in just 12 months

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At times luck plays a crucial role rather than investor’s analytical skills to get multibagger return on Dalal Street in a very short period of time. If not all, at least those who have received over 1,000% return in just one year, will agree to it.

Over 2000% rally

Data shows that at least a dozen of stocks have multiplied investors wealth by over 10 times since June last year. With a rally of 2,038%, smallcap firm Anjani Foods emerged as the top gainer in the list. The scrip has jumped to Rs 355.35 on June 14, 2021 from Rs 16.62 on the same day last year. On the other hand, the benchmark BSE Sensex has gained 55% during the same period.

Anjani Foods is one of the bakery food-on-the-go retailers and bakery product distributors in Andhra Pradesh. Promoters held a 75% stake in the company as of March 31.

GRM Overseas emerged is the next gainer in the list. Shares of the company have soared 1,468% to Rs 2,665.55 during the past one year. It was followed by Garware Synthetics (up 1365%), Shri Bajrang Alliance (up 1298%), Goyal Associates (up 1,231%) and CG Power (up 1,228%).

Bihar Sponge Iron, Waaree Renewable Technologies, Tanla Platforms, Jaykay Enterprises, Adani Total Gas and Prismx Global Ventures have also advanced between 1,000% to 1,200%. Following the recent rally in Adani Total Gas, brokerage ICICI Securities believes that shares of the company have a high probability of migrating from mid to large-cap category.

What’s next?

The second Covid wave has now started to recede. There is greater visibility on vaccine supply now as compared with the previous two months. “The expeditious containment of active Covid-19 cases and accelerated pace of vaccinations would boost and provide confidence in economic growth recovery in FY22E,” said Motilal Oswal Financial Services.

As states ease restrictions gradually in June 2021, the brokerage expects the demand environment to get better. However, after the recent run-up, the Nifty now trades at rich valuations of 17.9 times FY23 EPS. Thus, any misses in the FY22E earnings delivery may act as a dampener.

However, domestic brokerage firm ICICI Securities believes that the benchmark NSE Nifty index can hit 17,250-mark by June 2022 on likely improvement in profit and the capex cycle.

Motilal Oswal Financial Services prefers stocks like ICICI Bank, SBI, UltraTech Cement, Divi’s Labs, Hindalco, SBI Cards, Infosys, HCL Tech, M&M, Hindustan Unilever and Titan in the largecap space. On the other hand, it prefers players like Gujarat Gas, Orient Electric, Varun Beverages, SAIL, Larsen and Toubro Technology, Gland Pharma, Endurance, Emami, and Federal Bank in the midcap space.