Up to 2,600% rally: These stocks turned multibagger since last Union Budget; do you own any?

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Benchmark equity indices BSE Sensex and NSE Nifty advanced nearly 18% since the last Union Budget 2020 despite uncertainties in the form of Covid-19 pandemic. Going with market analysts, robust inflows by overseas investors and liquidity measures taken by the government and central banks aided the domestic equity market during the past one year.

On the other hand, more than 250 stocks on the BSE climbed more than 100% since February 1 last year. With a rally of 2,656%, Ruchi Soya Industries emerged as the top gainer in the list. The scrip traded at Rs 592.55 on January 28 against Rs 21.50 on the budget day last year.

In a company-specific update, Ruchi Soya hogged the limelight after it was acquired by a Baba Ramdev’s Patanjali Ayurveda-led consortium last year via an insolvency resolution process. Promoters held 98.90% stake in the company as of December 31.

Zenith Healthcare (up 1,000%), RRIL (up 974%), Praveg Communications (India), Tanla Platforms (up 785%) and Biofil Chemicals (up 737%) stood among other major gainers on the BSE.

Digispice Technologies, Tata Teleservices (Maharashtra), Venus Remedies, Makers Laboratories, Standard Batteries, Esaar (India), Svam Software, Usha Martin Education and Transglobe Foods also soared over 500% in the last one year.

The 30-share BSE Sensex gained 7,138 points to 46,874 on January 28 from 39,735 on February 1. Meanwhile, the index hit a 52-week high and low of 50,184 on January 21 and 25,638 on March 24, respectively. Likewise, the 50-share Nifty added 2,155 points to 13,817.

The BSE Midcap also gained 20% to 18,208, while the Smallcap index jumped 26% to 18,033 during the same period.

Other players in the list including Bharat Immunologicals, Adani Green, Race Eco Chain, GTL, MBL Infra, Sintex Industries, Dhanvarsha Finvest, Urja Global, SR Industries, Subex, Goenka Diamond & Jewels, Aarti Drugs and FCS Software also rallied between 350%-500%.

In the largecap space, pharma major Cipla advanced nearly 90 per cent to Rs 841.90 since the Union Budget 2020. Wipro, Divi’s Labs, Infosys, Tata Motors, HCL Technologies, Dr Reddy’s Labs and JSW Steel also advanced over 50%. On the other hand, IndusInd Bank, Coal India, NTPC and Indian Oil Corporation slipped 33%, 26%, 16% and 15%, respectively.

Market analyst Yogesh Mehta, founder, Yield Maximers believes that FMCG major ITC can hit the level of Rs 260 in the next one year. The scrip was at Rs 206 on January 28. Mehta is also bullish on Avenue Supermarts and Hero MotoCorp with a price target of Rs 3,400 and Rs 4,000, respectively.

On the other hand, Geojit Financial Services is positive on Healthcare Global Enterprises, Mold-Tek Packaging and Infosys.