An evaluation of the high-performing stocks that were consistent gainers showed that atleast eight stocks within the BSE universe gained 20% in each of the four quarters of calendar year 2023 and turned multibaggers, data by Ace Equity showed.
For analysis purposes, the evaluation was done on stocks with a market capitalization of over Rs 2,000 crore.
Shilchar Technologies
This smallcap stock was a star performer in 2023, as it has given more than 50% returns in three of the four quarters of the year. Thanks to this strong upmove, the stock has given multibagger returns of 437%.
Newgen Software
This smallcap stock was another rockstar, giving more than 50% returns in two of the last four quarters of 2023. The strong run-up saw the IT services firm give more than 300% returns in just one year.
Marksans Pharma
The smallcap pharmaceutical stock has given more than 20% returns consistently in the last four quarters, and gave 180% returns in just one year. In the last four quarters, foreign institutional investors have held their stake in the 14-15% range, while mutual funds increased holding for two quarters in a row.
RateGain Travel Technologies
Hospitality and travel-related stocks gave handsome returns to investors due to the strong rebound in discretionary spending, and RateGain Travel was one among them. RateGain Travel shares have given more than 20% returns for four quarters. FIIs increased their stake in the company significantly in the December quarter, taking their holding over 10%.
Will the trend continue?
Equities is not a one-way road. So there will be ups and downs, but during such volatile times, looking for quality stocks is a better way to have consistent returns.
Several smallcap stocks have entered into the overbought zone after the stellar run in 2023. Therefore, selling is overdue in many of the counters, according to market experts.
According to Vinay Paharia of PGIM India MF, midcaps and smallcap stocks are expensive.
“Weak midcaps and smallcaps are in a bubble zone and caution is advised. Whereas, strong midcaps and smallcaps present an opportunity for long term investors,” he said.
Abhinandan Tulsian of Tulsian PMS recommends investors to keep churning their portfolio by booking profits rather than just sitting on the same stock for many years.
“Markets and environment are very dynamic and buy and forget may not work, if you are looking for outperformance,” he said.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
