Data analysis shows that there are at least 5 other stocks that have given eye-popping returns of at least 1,000% — Kesar India, SG Mart, Jai Balaji Industries, Insolation Energy and Waaree Renewable Technologies.
Some of the other large multibaggers include Panorama Studios International (834%), Cupid (736%), Unitech (538%), Aurionpro Solutions (476%), KPI Green Energy (405%) and IRFC (402%), according to ACE Equit
Within largecaps, top gainers include Bharat Heavy Electricals (206%), REC (270%), Power Finance Corporation (191%), Trent (194%), Zomato (217%) and Adani Green Energy (199%).
Also read | Smallcap stocks give up to 2,000% return in FY24 but brace for a bumpy ride
Experts suggest that investors must use any steep market corrections as buying opportunities, given the long-term structural growth opportunities. Domestic economy-linked sectors are on top of the buying list.
“The most common pushback on India is its premium valuation. We believe the premium valuation is justified by cyclical and structural tailwinds, and further supported by political stability. Additionally, valuations get support from falling equity risk premium as interest rates fall. Given this backdrop, we believe India’s high valuation is sustainable,” UBS Securities said.
The brokerage, which expects Nifty to reach 25,200 by March 2025, likes autos, industrials, utilities, real estate, consumer durables and healthcare sectors that have high domestic exposure.
Analysts at HSBC Securities are also of the opinion that a deep sell-off in midcap from current levels seems unlikely and investors will likely use these opportunities to buy into midcaps. The foreign brokerage’s top midcap ideas are Nykaa, Equitas, Titagarh, Prestige Estates, Phoenix Mills, Ipca Labs, Voltas, and Kalyan.
Anand Rathi expects earnings growth of Nifty 50, Nifty Largecap 100, Nifty Midcap 150 and Nifty Smallcap 250 during 2024-25 and 2025-26 to be robust — in all cases above 11%.
“Even if we assume fair PE multiples of the respective indices would be significantly lower than the average forward PE multiples during similar phases of business cycles in the past, we do not observe any major froth in the Indian equity markets currently. On the contrary, Nifty Smallcap 250 seems to be trading significantly below the fair valuation,” said Sweta Jain of Anand Rathi.
As far as earnings are concerned, the brokerage expects largecaps to deliver slightly better than average earnings growth in 2024-25. The smallcap index is likely to deliver the best earnings growth in 2025-26 while midcap earnings growth expectation is below its long-term average, it said.
