According to ET, 35 stocks have given multibagger gains of over 500% in 2 years.
These are stocks of businesses that are growing fast and those which have managed to pare debt.
Some of the stocks which have given massive multibagger gains include Goldstone Infratech, Dwarikesh Sugar and Goa Carbon. These stocks have soared over 1,000 per cent between October 2015 and this October.
An investment of Rs 1 lakh in these stocks would have grown into Rs 10 lakh between October 2015 and now.
Other stocks like Himadri Speciality Chemical, HEG and Indiabulls Ventures, whose shares climbed 951 per cent, 946 per cent and 943 per cent, respectively, during this period.
Penny stocks which gave multibagger gains
Several penny stocks like SORIL Holdings, Maan Aluminium, Jindal Worldwide, Thirumalai Chemicals, Uttam Sugar Mills, Mawana Sugar, Beardsell and Antartica, gave gains between 800 per cent and 900 per cent in last two years.
The benchmark Sensex gave a return of 25 per cent to 33,213 on October 31, 2017 from 26,656 on October 30, 2015. At present, both Nifty and Sensex are trading at their lifetime high levels.
Dwarikesh Sugar Industries, more multibagger potential
Sugar firm Dwarikesh Sugar Industries is a star performer this year. It reported over 88 per cent year-on-year profit growth at Rs 59.27 crore in June quarter (September quarter numbers still awaited), which helped it pare debt from Rs 300 crore at the end of March, 2016 to Rs 76 crore.
It plans to become debt-free soon.
The company expects sales to rise in excess of 15 per cent during the 2017-18 crop year, as production is likely to jump to a record high in Uttar Pradesh.
Manaksia Industries, Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), V2 Retail and Tata Metaliks
Among other gainers that have soared in excess of 700 per cent are Manaksia Industries, Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), V2 Retail and Tata Metaliks.
Auto ancillary player Minda Industries has also managed to get a place among the top gainers of last two years, rising 688 per cent to Rs 820 as of October 31, 2017 from Rs 104 on October 30, 2015.
Stocks like Phillips Carbon, Maithan Alloys, Jayant Agro, Future Market Networks, Rain Industries, Sanwaria Consumer and Venky’s India have risen over 600 per cent in this period.
Sectors like auto, auto ancillary as well as proxy plays on the agricultural sector such as farm mechanisation equipment and cropcare sectors can throw up big gainers over the next three years, Nitasha Shankar, Senior Vice President and Head of Research, YES Securities, said.
Shankar says other interesting themes include housing (indirect plays like building material), as well as consumer durables and retail.
These are interesting segments given the low penetration levels and the higher growth expected due to changing consumption patterns, she said.
500% gain from HEG and Graphite India
A couple of midcap and smallcap stocks have also managed to soar over 500 per cent in last two years. They include Graphite India, Vardhman Special Steels, Shiva Texyarn, Manaksia Steels, Allsec Technologies, Star Paper Mills, IG Petrochemicals, Ramky Infra, Cineline India and Bhansali Engineering.
The buoyant performance of HEG and Graphite India has been driven by a significant change in outlook for the global graphite electrode segment over the past few months, which has brightened the prospects of the sector.
Vinod Nair, Head of Research at Geojit Financial Services, says the infrastructure, defence and chemical sectors are likely to throw up big gainers.
Strong re-rating of chemicals stocks
In recent times, the chemicals sector witnessed significant re-rating led by softer commodity prices and strong earnings growth. “This trend should continue as domestic speciality chemical manufacturers are still in investment mode to create new products through good R&D with an eye on substituting imports and capturing a share of global markets.
Higher sourcing from global chemicals manufacturers by domestic manufacturers due to higher regulatory compliance requirement in China and the Make in India campaign are is going to support this trend, said Nair.