The year 2022 was a roller coaster ride for the Indian markets. While the benchmark indices hit their record highs in early December, however, they later consolidated to fall around 2 percent for the month of December till date. In 2022 year-to-date (YTD), the benchmarks Nifty and Sensex are up nearly 6 percent each.
"India’s relative attractiveness over the medium to long term, among other factors, will depend on the manufacturing sector becoming a key driver of growth (PLI and China+1), and private sector investment cycle revival driven by manufacturing sector growth. Post strong 40 percent earnings growth in FY22, we expect net profits of the Nifty-50 Index to grow by 10 percent in FY23E, by 16.4 percent in FY24E and by 15.8 percent in FY25E. Currently, the Nifty50 index is trading at a PE of 22.1x FY23E, 19.1x on FY24E and 16.5x on FY25E earnings. Use opportunities arising from market correction to add quality stocks (with attractive valuation) from a long-term investment perspective," said Kotak Institutional Equities in a note.
Despite the volatility during the year, 6 stocks have surged over 345 percent, giving exceptional returns in this turbulent year. However, it is important to note that these are mainly small-cap/penny stocks. While investors have made huge profits on such stocks, it is key to remain cautious and vigilant. While these stocks can give exceptional returns, they are high-risk stocks and can also decline massively on any related news. Only high-risk investors should invest in such stocks and in very small weightage. Please consult your financial advisor before making any changes to your portfolio.
Challenges associated with such stocks emanate from the fact that these are very small companies with negligible analyst coverage, very limited information on the public domain and often inaccessible insights from the management.
Let’s now take a closer look at some of these star performers of 2022.
Kaiser Corp: Shares of packaging firm Kaiser Corporation rallied 1,935 percent in 2022, from ₹2.8 in December 2021 to currently trade around ₹57. While the stock has been majorly volatile in 2022, it gave multibagger returns in first 4 months of the year, rising 4,579 percent between January-April. Kaiser Corporation Limited, through its subsidiaries, provides turnkey project management and engineering services in India. It operates in two segments, Printing and Infrastructure Projects. The company also engages in printing labels and cartons, packaging materials, magazines, and articles of stationery. The company was formerly known as Kaiser Press Limited and changed its name to Kaiser Corporation Limited in November 2013. Kaiser Corporation Limited was incorporated in 1993 and is based in Mumbai, India.
SEL Manufacturing: Shares of textile firm SEL manufacturing has surged over 1,427 percent in 2022, up from ₹42 in December 2022 to ₹646 in December currently. The stock has risen 26 percent in December so far after falling for 7 consecutive months since May. In this period, it lost, 70 percent. However, it gave multibagger returns between January-April 2022, up 3,915 percent in these 4 months. SEL Manufacturing Company Limited engages in the spinning, knitting, and processing of yarns and fabrics in India and internationally. Its products portfolio includes knitted garments, terry towels, knitted and processed fabrics, and various kinds of yarn, as well as ready-made garments.
KBS India: The wealth management services firm jumped from ₹9.5 percent in December 2021 to ₹121 currently, giving its investors a massive 1,169 percent return in 2022. The stock has been in the green for 6 consecutive months since July, of which it has given multibagger returns in 2 of them (August and September). Between July-December, the stock has advanced 999 percent. KBS India Limited operates as a stock broking company in India. It also trades in shares; and provides brokerage services. The company was formerly known as KBS Capital Management Ltd. and changed its name to KBS India Limited in March 2011. KBS India Limited was founded in 1935 and is based in Mumbai, India.
Kakatiya Textiles: The textile stock has risen from ₹5.7 in December 2021 to currently trade around ₹52, rallying 817 percent in 2022 YTD. While the stock has fallen 6.5 percent and 38 percent in December (so far) and November, respectively; it had given multibagger returns in October and September, up 148 percent and 114 percent, respectively. Kakatiya Textiles Limited manufactures and sells cotton yarn. The company was incorporated in 1981 and is based in Tanuku, India.
Supreme Holdings & Hospitality: The stock rose 613 percent in 2022, up from ₹17 in December 2021 to currently trade at ₹123. While the stock has shed 13 percent and 10 percent, respectively in November and December (till date), It has given positive returns in 9 straight months between February and October. In this period, the stock had advanced 848 percent. Supreme Holdings & Hospitality (India) Limited engages in the development of commercial and residential projects in India. It is involved in land development; construction and real estate; and hospitality activities. The company was incorporated in 1982 and is based in Pune, India.
Cressanda Solutions: Shares of IT solutions firm Cressanda Solutions have given stellar returns to its investors in 2022. This penny has soared 345 percent in this period, from ₹6.5 in December last year to currently trade around ₹29. The stock rose 17.5 percent in December so far after falling 19 percent and 14 percent in November and October, respectively. It also gave multibagger returns in April and March 2022, up 123 percent and 156 percent, respectively.
Cressanda Solutions provides software, digital media, and information technology (IT) enabled services. Its software services include onsite-offshore development of various business applications, IT consulting, and offshore application development, maintenance, testing, and migration services. The company was incorporated in 1985 and is based in Mumbai, India. Recently, the firm informed that it has entered into an agreement with a large institutional client for providing tech-powered infrastructure solutions for unaddressed passenger experience in India. It noted that it will play a pivotal role in managing the entire operations of this prestigious project with an estimated value of ₹15,000 million in a fully functional year.