275 stocks outperform markets in 2015

Even as the benchmark indices have recorded negative returns thus far in the current calendar year 2015, a clutch of stocks have bucked the trend and outperformed the markets.

An analysis of 746 companies from the BSE-500, mid-cap and small-cap indices show that 275 stocks have outperformed the benchmark indices by recording positive returns. Of these, 29 stocks gained over 50% and another 145 companies moved up between 10% and 50%.

By comparison, the S&P BSE Sensex and CNX Nifty have corrected 3% each thus far in calendar year (CY) 2015, while S&P BSE Small-cap index and S&P BSE Mid-cap indices have slipped 4% and 1.7% respectively till Tuesday.

Kitex Garments, Hitachi Home & Life Solutions, Eveready Industries, Aegis Logistics, BEML, Ricoh India, Chennai Petroleum Corporation, Dish TV, Titagarh Wagons and Welspun India are among few stocks that have surged more than 50% since December 2014.

A strong financial performance and foreign institutional investors (FIIs) interest in some of the counters have fuelled the rally in these stocks, analysts say.

Ricoh India, the largest gainer among these pack, has rallied 187% from Rs 294 to Rs 845 on the BSE so far in the current calendar year. The company had reported nearly three-fold jump in its standalone net profit at Rs 41.48 crore for the quarter ended March 2015 against Rs 14.23 crore in the year ago quarter.

Besides Chennai Petroleum Corporation Limited (CPCL) that rallied nearly 100%, Mangalore Refinery & Petrochemicals (MRPL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) from the refinery sector have rallied between 25% - 50%.

Explains G. Chokkalingam, founder & managing director, Equinomics Research & Advisory: "Some of these stocks have rallied as investors took a position based on the strong financial performance in the recently concluded quarter. Having said that, one cannot rule out an element of speculation in these some of these counters given the low floating stock."

Eveready Industries and BEML have soared 69% and 56%, respectively. Both companies posted over three-fold jump in their net profit during the recently concluded quarter. FIIs, too, have hiked their stake in Eveready by three percentage points to 10.47% and in BEML by 2.7 percentage points to 6.74% in the March 2015 quarter.

UPL, PI Industries, Bayer Crop Science from agrochemicals, SML ISUZU, Ashok Leyland and Eicher Motors from automobiles, Britannia Industries, Gillette India, Marico, Godrej Consumer Products and Emami from fast moving consumer goods (FMCG) and Mirza International and Relaxo Footwear from footwear sector have gained more than 15% each so far in the calendar year 2015.

OUTLOOK

Analysts remain optimistic on the road ahead for the automobile sector, especially the passenger car and the commercial vehicle segment.

Maruti Suzuki and Ashok Leyland are the top picks of R Sreesankar, head of institutional equities at Prabhudas Lilladher. "Our call of the headwinds in terms of rural consumption post the un seasonal rains could result in slowdown in demand for two wheelers in rural areas, affecting the off take of motorcycles," he says.

Sachin Bobade, an analyst tracking the FMCG sector at Karvy continues to remain cautious on the consumer space and believes that the monsoon would play vital role in overall sector performance. "In addition, ongoing concerns related to economy and rural growth would remain key challenges, going ahead," he says.