In 2023, the Indian markets weathered a stormy ride, grappling with global headwinds such as higher US bond yields and the Hindenburg report on Adani. The specter of a Middle East war added to the uncertainty. Despite these hurdles, the Sensex soared past 70,000, and the Nifty crossed an impressive 21,000, showcasing the resilience and strength of the Indian markets, which defied expectations to reach record highs.
On a year-to-date basis, while Sensex reached the 71,900 mark, Nifty was inches away from reaching the 21,600 level mark. However, the smallcap and midcap indices remained the crown jewels in the investor's portfolio on Dalal Street. Nifty 100, on the other hand, has given a year-to-date return of around 17 per cent. Here is a list of the top 5 performers (data has been extracted based on the Nifty 100 index as of December 15) of the Dalal Street-
1. Trent
Tata Group's retail arm, Trent, experienced a remarkable upswing in its share price of more than 122 per cent. The financial strength was evident as Trent Ltd. reported a consolidated net profit of Rs 234.73 crore for the September quarter of FY24, showcasing a robust increase from the previous fiscal year.
Despite a somewhat subdued rural demand initially, the overall domestic demand stayed resilient, buoyed by festive fervor. However, the looming specter of inflation, while significant, has managed to stay below the RBI's upper limit.
"Trent Limited, a leading Indian retailer, is rapidly growing, fueled by Zudio, which contributes 40 per cent to total revenues. Planning to add around 290 stores between Zudio and Westside in FY2024-25, Trent Limited showcases a robust expansion strategy. With consistent revenue and margin growth, the company looks fundamentally strong for the medium to long term," said Swapnil Shah, Director-Research, StoxBox.
2. Hindustan Aeronautics Ltd.
A multibagger PSU, this defense company's share has achieved a robust triple-digit return of 117 per cent. Despite a minor uptick in quarterly profits, the company's order book exceeded Rs. 80,000 crores, offering a clear outlook on revenue visibility.
The upswing in the company's stock value can also be attributed to the acquisition approval granted by the Defence Acquisition Council (DAC).
The approval greenlights the company's upcoming acquisition in military aviation, focusing on Light Combat Helicopters (LCH) and Light Combat Aircraft (LCA) segments. This move enhanced the company's defense sector standing which eventually contributed to heightened investor confidence.
"HAL has proven its technological capabilities by developing Tejas, AMCA, etc, and it has recently signed an MoU to supply light & medium utility helicopters to Argentina’s military, and has advanced leads with Philippines and Egypt. Therefore, we see strong future growth prospects for HAL," said Dinesh Gupta - Fund Manager, Torus Oro PMS.
3. Zomato
Perhaps the most talked-about stock on Dalal Street and a standout among new-age investments, Zomato has garnered widespread attention for delivering double-digit profits this year. Remarkably, it stands out as the sole new-age stock to not only meet its listing price but also yield multibagger returns, boasting an impressive 105 per cent increase year-to-date.
Adding to its financial flavor, Zomato's revenue from operations demonstrated robust growth, marking a 71 per cent year-on-year surge to reach Rs 2,848 crore.
Analysts believe that the stock's upward performance can be attributed to factors like increased gold subscriptions, platform fees, improving ad revenues, and positive consolidated figures. In Q2FY24, Gold membership-GOV's contribution to total GOV surged from 19 per cent in FY23 to 40 per cent. This is evident in the spike of 'Gold' memberships, rising from 1.8 million in FY23 to 3.8 million in Q2FY24. The introduction of platform fees is set to enhance overall profitability in the future.
4. TVS Motors Company
The company is on the verge of becoming a multibagger, with its shares surging by approximately 88 per cent driven by robust demand both in domestic and export markets. Despite a minor rise in consolidated profits as compared to last year, TVS experienced an overall sales increase in its EV segment, iCube, which stood out with strong growth.
"The sale of the first 100,000 units of the electric brand took a little over three years while the run-up to 200,000 units was achieved in just 10 months. Despite foreign markets being ridden with macroeconomic headwinds, the company's exports also registered a revival in sales," Swapnil Shah said.
5. Tata Motors
Tata Motors zoomed ahead with an 85 per cent YTD surge on the NSE, fueled by India's record-breaking auto sales in September 2023, boosted by festive demand. The company also accelerated to a Q2 comeback, shifting gears from a Rs 945 crore loss last year to a roaring Rs 3,764 crore net profit.
Analysts attribute Tata Motors' success to the favorable trend of softened commodity prices and a surge in demand for its luxury arm, Jaguar Land Rover. However, the most surprising development was perhaps the unprecedented surge in vehicle sales recorded in November, reaching an all-time high in India, as reported by data from the Federation of Automobile Dealers Associations (FADA).
Shah says, "Tata Motors' shares surged in 2023, buoyed by optimism surrounding its luxury arm, Jaguar Land Rover (JLR). As India's leading electric vehicle manufacturer, Tata has seized an early advantage in the PV market with a focus on stylish SUVs. Robust growth is anticipated in the commercial vehicle segment, projecting a 7 per cent rise in FY24 and 11 per cent in FY25."
