Although the current market is characterized by uncertainty and volatility, it may be surprising to hear about stocks that have returned over 100% gains.
However, amidst these turbulent times, some stocks stand out, giving investors hope.
Despite the fact that the S&P BSE Sensex and the BSE 500 have not experienced significant declines or given any major returns in the past year, there are five stocks that have doubled investor wealth during this period.
Mazagon Dock Shipbuilders
Over the course of the last year, the shares of Mazagon Dock Shipbuilders Ltd.
have shown a consistent upward trend, with a remarkable surge of 156.24%.
Mazagon Dock Shipbuilders Ltd. is a state-owned company that specializes in the construction and repair of warships and submarines for the Indian Navy on behalf of the Ministry of Defence.
As the sole shipyard that produces both destroyers and conventional submarines, in addition to other vessels for commercial clients, it holds a unique position in the industry.
Over the period spanning from FY13 to FY22, the company has exhibited a Compound Annual Growth Rate (CAGR) of 10.5% in terms of revenue growth.
However, there has been a decline in operating margins which has resulted in a rise of only 3.6% and 3.9% in Ebitda and PAT, respectively.
At present, the stock is trading at a price-to-earnings ratio of 14.32, and has reached a 52-week high of Rs 936.85.
Moreover, the stock’s return on equity stands at an impressive 24.05%.
Varun Beverages
In the last one year, the shares of Varun Beverages Ltd. have risen by a substantial 110.53%.
The company is the second-largest franchisee of PepsiCo outside of the United States, and its products include a variety of carbonated soft drinks like Pepsi, Mountain Dew, Seven Up, and Mirinda.
Additionally, it manufactures non-carbonated beverages like Tropicana Slice and Tropicana Frutz, as well as bottled water such as Aquafina.
Varun Beverages Ltd. accounts for approximately 90% of PepsiCo’s beverage sales volume in India and has a presence in 27 states and seven union territories.
Moreover, the company is the exclusive bottler for PepsiCo in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.
In Q4 2022, the company reported impressive volume growth of 17.8%, which, along with a superior product mix, contributed to a 27.7% year-on-year increase in sales.
Furthermore, Ebitda grew by 48.1% year-on-year to reach Rs 307.5 crore, with margins at 13.9%.
As a result, PAT rose to Rs 81.5 crore, marking an increase of 2.5 times.
Currently, the shares of VBL are trading at a price-to-earnings ratio of 69.60 and have reached a 52-week high of Rs 1,432.05. Additionally, the return on equity stands at a commendable 23.02%.
Mahindra CIE Automotive
Over the past one year, Mahindra CIE Automotive Ltd. has delivered a remarkable return of 104.08%.
The company is part of the CIE Automotive Group, based in Spain, and is a supplier of automotive components with a diverse range of technologies and products.
In the year 2022, 36% of its consolidated sales came from Europe, while the remaining 64% came from India.
Forging constitutes approximately 59% of the company’s consolidated sales, with 78% of it coming from Europe.
In India, Mahindra CIE Automotive Ltd. derives 49%, 23%, 20%, and 8% of its sales from passenger vehicles, two-wheelers, tractors, and medium and heavy commercial vehicles, respectively.
Furthermore, in Europe, it now derives 75% of its sales from passenger vehicles.
MCI’s shares have reached a 52-week high of Rs 462.05, and currently, the stock is trading at a price-to-earnings ratio of 26.33.
Additionally, the company has delivered a return on equity of 11.45% to its shareholders.
UCO Bank
Over the past one year, UCO Bank Ltd.’s shares have experienced a significant surge of 103.84%.
As a state-run bank, UCO Bank was removed from the “prompt corrective action” regulatory system in August 2021.
In its first year after the removal, the bank made a profit of Rs 938 crore, indicating a positive trend in its financial performance.
Going forward, UCO Bank is targeting a profit of Rs 2,500 crore in fiscal 2024.
UCO Bank Ltd.’s shares have gained 103.84% in the past year, after the state-run bank exited the “prompt corrective action” regulatory system in August 2021.
In the third quarter of the current fiscal year, the bank’s net profit rose by 110% to Rs 652.97 crore, while the net interest income increased by 10.74% year-on-year to Rs 1,951.87 crore.
Additionally, the bank’s non-performing assets decreased to Rs 2,406.90 crore in Q3 FY23 from Rs 3,333.59 crore in the previous year.
The stock is currently trading at a market price of Rs 23.9 and has hit a 52-week high of 38.15.
It is trading at a price-to-earnings ratio of 17.94, and has delivered a return-on-equity of 6.54%. UCO Bank is now targeting a profit of Rs 2,500 crore in fiscal 2024.
Finolex Cables
Finolex Cables Ltd. has witnessed a surge of 102.92% in its share price over the past year.
The company holds a strong position as the market leader in electrical wires, backed by a solid balance sheet, a strong brand, a pan-India distribution network, and robust free cash flow generation.
However, the company’s performance over the past few years has been mixed.
According to brokerage firm Systematix, the company is expected to witness margin expansion, diversify into consumer-facing businesses, and achieve around 20% PAT CAGR, which has resulted in a significant re-rating of the stock price over the five years leading up to FY18.
The stock of Finolex Cables Ltd. saw a significant re-rating in the five years leading up to FY18, driven by margin expansion, diversification into consumer-facing businesses, and an expected PAT CAGR of around 20%, according to brokerage house Systematix.
However, the stock has since de-rated due to flat earnings in its core businesses, a lack of scale in FMEG, and lower return ratios from FY17 through FY21.
Systematix has identified sharp changes in copper prices and the continued losses of new businesses as the biggest risks for the company.
Currently, the stock is trading at a price-to-earnings ratio of 25.57, with a return-on-equity of 13.80%. It has hit a 52-week high of Rs 847.60.
