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D-Street churned out least number of multibaggers in a decade in FY19; but that’s good news for FY20

Some analysts are already forecasting more big compounders on D-Street in 2019-20.

, ETMarkets.com|
Mar 26, 2019, 12.17 PM IST
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An aerial view shows some 46 stocks rallied over 100 per cent during the FY2018-19 (till March 15) on BSE against 207 stocks last year.
Dalal Street has turned slower in creating multibaggers this financial year. Despite 15 per cent rally in BSE Sensex, the financial year is ending with least number of stocks giving extraordinary returns in 10 years.

Going by historical data, the poor show this financial year could be harbinger of a good harvest next year. Some analysts are already forecasting more big compounders on D-Street in 2019-20.

In 2008-09, Dalal Street disappointing with less than 50 multibaggers. But there were as many as 1,333 stocks giving between 100 per cent and 5,000 per cent return the very next year.

An aerial view shows some 46 stocks rallied over 100 per cent during the FY2018-19 (till March 15) on BSE against 207 stocks last year.

Among them were shares of Coastal Corporation, Tiaan Ayurvedic, Vikas Proppant & Granite, Sadhana Nitro Chem, Shriram Asset Management Company and Birla Cable, which soared over 100 per cent in the financial year ending this March 31.

“Without any extraordinary optimism, Nifty can rally 2,000 points whereas hundreds of midcaps and smallcaps can grow 100 per cent over next one or one-and-a-half years. That is the environment our Indian market is in right now,” Porinju Veliyath, MD & Portfolio Manager, Equity Intelligence India, told ETNOW in a recent chat.

Nifty50 has advanced 13 per cent 11,426 till March 15 this year from 10,113 on March 28 last year.

Inflated valuations, re-categorisation of mutual funds by Sebi, corporate governance issues in several companies, macro headwinds, liquidity crisis for NBFCs and selloff of pledged shares were the key reasons the market delivered lesser number of multibaggers this year.

The BSE Midcap index has dipped 4.96 per cent, while the Smallcap index has retreated 13 per cent so far in FY19.

“Midcap and smallcap stocks have bottomed out. This will outperform the largecaps over the next three years. Capital goods and infrastructure should throw up big compounders going forward,” said Jiten Parmar, Value Investor and Co-Founder Aurum Capital.

About 163 stocks delivered more than 100 per cent return during 2010-11, followed by 65 in FY12, 87 in FY13, 188 in FY14, 649 in FY15, 205 in FY16 and 401 in FY17.


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