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6 Quality Stocks That Gave Investors Up To 135% Returns In A Year

Olga Robert

Direct equity investment is often favoured for its potential to provide exceptional returns, sometimes even doubling investors' wealth in a short period.

The secret lies in identifying the right stock that could help grow your money. Here are 6 such Indian stocks that rose 48 to 135 percent in value in a span of one year.

1. HDFC AMC

Company Share price on 6 Feb 2019 Closing price on 5 Feb 2020 Increase in value per share % increase
HDFC AMC Rs 1,348.8 Rs 3,189.80 Rs 1,841 136.49%

HDFC Asset Management Company is the investment manager of HDFC Mutual Fund and has a diversified asset class mix across equity and fixed income.

It reported a 45 percent increase in profit after tax for the December-ended quarter at Rs 352.5 crore. More importantly, the fund house's AUM (assets under management) grew 12 percent on a year-on-year basis to Rs 3.7 trillion as on 31 December 2019.

Corporate tax rate cuts also aided the increase in its net profit.

However, HDFC AMC's market share on closing AUM basis declined to about 13.9 percent in December quarter when compared to 14.9 percent in September.

In terms of stock valuation, experts feel that the shares are pricey when price/earnings ratio is considered and is thus exposed to the risk of losing its shine if there is a slowdown in AUM growth due to volatility in the markets.

2. Dixon Tech

Company Share price on 6 Feb 2019 Closing price on 5 Feb 2020 Increase in value per share % increase
Dixon Tech Rs 2,214.65 Rs 4,655.95 Rs 2,441.3 110.23%

Experts say the future is bright for the design-focused and solutions company. It manufactures products in consumer durables, lighting and mobile phone segment. Its association with popular brands like Samsung and Xiaomi has factored in its growth.

Dixon Technologies' share price is projected to surge past Rs 5,000 in the next 12 months.

For the December quarter, its net sales increased by 31 percent from the previous year and the company has shown good results especially in consumer electronics, lighting, and mobile businesses.

The recent revision in custom duty on Printed Circuit Board (PCB) assembly from 10 percent to 20 percent in the Union Budget may also benefit Dixon Technologies.

3. Berger Paints

Company Share price on 6 Feb 2019 Closing price on 5 Feb 2020 Increase in value per share % increase
Berger Paints Rs 310.65 Rs 588.65 Rs 278 89.49%

On 5 February, the company reported a 36.54 percent increase in consolidated net profit to Rs 181.85 crore in the December-ended quarter. The stock has been in a strong position as far as valuations go. Based on Bloomberg data, its shares trade 66 times the estimated earnings for FY 2021.

After the Q3 results, analysts from Emkay Global Financial Services Ltd in a note said, "With sales growth being similar to that of Asian Paints and most consumer peers, Berger's valuation premium of 20 percent (56 times FY22 estimated earnings per share) appears unjustified."

It further added that the strong earnings were driven by lower input prices and tax rate cut, which are expected to normalise in FY21.

4. Manappuram Finance

Company Share price on 6 Feb 2019 Closing price on 5 Feb 2020 Increase in value per share % increase
Mannapuram Finance Rs 96.9 Rs 168.75 Rs 71.85 74.15%

The Kerala-based NBFC, known for its gold loans, has witnessed healthy growth across all business segments. Having a stronghold in South India, it holds the potential to into the North Indian market.

Manappuram Finance recently reported 63 percent growth in consolidated net profit for December-ended quarter at Rs 397.84 crore against Rs 244.09 crore a year ago.

Narnolia Financial Advisors turned bullish on Manappuram Finance post Q3 results and estimates its PAT (Profit After Tax) for FY21 to grow by 8 percent. It raised the price target on the stock to Rs 213.

5. Info Edge (India)

Company Share price on 6 Feb 2019 Closing price on 5 Feb 2020 Increase in value per share % increase
Info Edge Rs 1,738 Rs 2,987.3 Rs 1,249.3 71.88%

The IT services company has a portfolio of brands across different domains that primarily provide online classified services. Its popular brands include naukri.com, 99acres.com, jeevansathi.com and shiksha.com.

The company has been an aggressive investor across multiple verticals-jobs, real estate, matrimony, food delivery (it owns a stake in Zomato).

At the start of this month, the company also acquired a stake in AR Rahman founded firm-Qyuki Digital Media.

In January, Info Edge set up its maiden venture capital fund, Info Edge Venture Fund (IEVF), making it the latest Indian listed company to set up its own investment vehicle, joining the likes of domestic technology giants Infosys and Wipro.

6. Avenue Supermarts

Company Share price on 6 Feb 2019 Closing price on 5 Feb 2020 Increase in value % increase
Avenue Supermarts Rs 1,512.65 Rs 2,248.9 Rs 736.25 48.67%

The owner and operator of the DMart supermarket chain recently entered the Top 20 club of overall market cap, surpassing Wipro and HDFC Life after it touched another new all-time high. In fact, in 2020 alone, Avenue Supermarts has overtaken 5 companies, including ONGC, Indian Oil and NTPC, in market cap.

The company reported a 53.3 percent year-on-year increase in standalone profit at Rs 394 crore for the December quarter when compared to Rs 257 crore.

Post the results, analysts at JP Morgan said in a note, "We like the company's execution capabilities, single format focus, sensible approach towards operating stores which offer healthy profit/return metrics, prudent store expansion strategy and strong focus on customer satisfaction. It has been able to attract new customers profitably (without having any loyalty programme) with its low price positioning, sharper product assortment and efficient execution. Despite its capital-intensive strategy of ownership (vs renting), its asset turns are similar to those of its peers."

2 Recently Listed Stocks That Have Doubled Investor Wealth

There are two stocks worth mentioning, that have doubled their investors' money since listing in less than 6 months.

1. IRCTC

IRCTC has risen 107.29 percent in value to Rs 1508.55 on 5 February 2020 from its listing price of Rs 727.75 on 14 October 2019.

2. Affle India

This mobile marketing company has repeatedly been on the list of recommendations for stock investment. Shares of Affle India rose by 109.87 percent to Rs 1769.30 on 5 February from Rs 843.05 on 9 August 2019 (its listing day).

Note: The data is as of 5 February 2020 on NSE. Equity investments are subject to market and sector-specific risks and may not replicate results seen in the past year.

Disclaimer
The article is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.

About the author
Olga Robert has been covering equity markets and personal finance for over two years.

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