As Sensex romps past 51,000-mark, here are stocks that gave bountiful returns on Rs 1 lakh investment

Broader markets gave several opportunities for investors to reap gains as sustained inflows by foreign institutional investors coupled with liquidity measures taken by the government and RBI propelled market sentiments.

A growth-oriented Budget presented by the FM Nirmala Sitharaman on February 1 further aided the domestic equity market.

As a result, benchmark equity index BSE Sensex soared 100% to its all-time high of 51,472 on February 8 from its 52-week low of 25,638 on March 24, 2020. With a rally of 5,455%, shares of Raj Oil Mills emerged as the top gainer. The scrip soared to Rs 201.10 on February 5 from its 52-week low of Rs 3.63 on October 7 last year.

The rise in share price shows that an investment of Rs 1 lakh in the company in October last year is now over Rs 55 lakh.

There are also 27 other stocks which turned Rs 1 lakh to over Rs 10 lakh from their respective 52-year low levels. The list includes Ruchi Soya, Anjani Foods, Orchid Pharma, ARC Finance, Modern Insulators, Tanla Platforms, RRIL, Bharat Immunomicals, Zenith Health, Digispice Technologies, Makers Laboratories, Stampede Capital (DVR) and Vivanza Biosciences. Shares of the companies jumped between 1,200%-2,600% from their year’s low levels.

In a company specific update, Cloud communication technology firm Tanla Platforms on February 6 posted multi-fold jump in consolidated net profit to Rs 93.5 crore for the quarter ended December 31, 2020.

The company had posted a profit of Rs 68 lakh in the same quarter a year ago when it had factored in depreciation of Rs 37.67 crore with new pesky call regulations coming in place.

Commenting on the mid and smallcap space, Edelweiss Broking in a report said: “We believe most froth has built in large caps, with valuations pointing to depressed returns and consolidation. More steam is left in the broader market-especially mid and small caps, where we recommend increasing of stakes. We believe that a possible consolidation or correction in the next few months should be utilised to add to smallcap and midcap stocks.”

The brokerage is bullish on GNA Axles, Kolte Patil, DLF, HDFC Life Insurance, Credit Access Grameen, PI Industries, Navin Fluorine and Metropolis Healthcare.

In the largecap space, energy-to-telecom behemoth Reliance Industries and IT majors Tata Consultancy Services and Infosys have gained up to 150% from their respective 52-year lows.

For stock-specific investors, SMC Global Securities is positive on Bharat Electronics and Oberoi Realty with a target price of Rs 165 and Rs 574, respectively.