scorecardresearch34 BSE500 stocks surged 20–65% in July; Brightcom Group stands at the top

34 BSE500 stocks surged 20–65% in July; Brightcom Group stands at the top

Updated: 01 Aug 2022, 10:32 AM IST
TL;DR.

The Nifty has climbed 8.60 per cent in the last month, from 15,799.10 to 17,158.25 points. The index is currently trading at a three-month high. The Sensex and BSE Small-cap indices both gained 8.57 per cent in July, while the BSE Midcap index gained 9.95 per cent.

Brightcom Group emerged as the top gainer in the BSE 500 Index in the last month. The stock has climbed from  <span class='webrupee'>₹</span>29.90 to  <span class='webrupee'>₹</span>49.40, generating a return of over 65.20% in the last month.

Brightcom Group emerged as the top gainer in the BSE 500 Index in the last month. The stock has climbed from 29.90 to 49.40, generating a return of over 65.20% in the last month.

The Indian equity markets finished the month of July on a strong note. Markets remained in positive territory for the third consecutive session on July 29.

The Nifty50 opened with a gap up of 150 points at 17,079.50 and touched an intraday high of 17,172.80 and a low of 17,018.15. It then closed nearly 1.35% higher at Rs. 17,158.25 points.

Similarly, the Sensex opened at 57,258.13 against the previous close of 56,857.79 and touched an intraday high and low of 57,619.27 and 57,104.81 respectively. The 30-share pack finally closed 712 points, or 1.25%, higher at 57,570.25, with 25 stocks in the green and 5 in the red. while the broader Nifty 500 closed at 14,665.65, up, 1.4%.

The Nifty has climbed 8.60 per cent in the last month, from 15,799.10 to 17,158.25 points. The index is currently trading at a three-month high. The Sensex and BSE Smallcap indices both gained 8.57 per cent in July, while the BSE Midcap index gained 9.95 per cent.

In the BSE500 Index, 2 stocks were able to gain more than 50%. In the last month, seven stocks returned between 30-38%, 25 stocks returned between 20% and 30%, and 60 stocks returned between 15% and 20%.

Brightcom Group

With a rally of more than 65.2 per cent, Brightcom Group emerged as the top gainer in the BSE500 Index in the last month. The stock has climbed from 29.90 to 49.40, generating a return of over 65.20% in the last month. In the past year, the stock has risen 115 per cent to 49.40 as of July 29, 2022. It has surged 2972.14 per cent and 1309.82 per cent in 3-year and 5-year periods, respectively.

However, for the 3 previous months, the stock has been an underperformer, down 41.19%. In June, the stock dropped 64%; in May, it dropped 19.54%; and in April, it dropped 23%.In the last six months, the stock lost about 54.5% of its value. Even at current levels, the stock is trading 59.80% below its 52-week high of 122.9, set on Dec 24, 2021.

Meanwhile, the company's annual revenue growth of 74.42% outperformed its 3-year CAGR of 24.58%.

Start health insurance

Star health insurance was the second top gainer in the BSE500 index. The stock has climbed from 497.70 to 747.20 in the last month, generating a return of 50.13 per cent.

However, with Friday's closing price of 747.20, the stock has corrected by 20.44 per cent from its issue price of 900/share.

Domestic brokerage firm ICICI Securities has given a 'buy' call on the stock with a target price of Rs. 825/share.

On the other hand, Motilal Oswal is also bullish on star health and recommended a 'buy' rating on the stock with a target price of 840/share.

Rakesh Jhunjhunwala is the promoter of Star Health and Allied Insurance Company and owns 10.08 crore shares, or 17.5% stake, in the company along with his wife, Rekha Jhunjhunwala.

Can Fin Homes

Can Fin Homes rallied 10.87 per cent to 596.10 during the last week after its net profit jumped 49 per cent to 162.31 crore in the June 2022 quarter as against 108 crore in the corresponding quarter of the preceding fiscal. Pre-provision operating profit (PPOP) increased by 10% quarter on quarter (QoQ) and 40% year on year (YoY) to 215 crore.

The stock gained 37.87% in a month to 596.10 from 432.35. Over the last three years, the stock has delivered a return of 52.29% to its shareholders.

Motilal Oswal has a target price of 640 on Can Fin homes, implying an upside potential of 7.36 per cent from its previous closing price.

Further, Prabhudas Lilladher has also maintained a 'buy' call on the stock with a target price of 675.

Can Fin Homes, promoted by Canara Bank, is a housing and finance company that is focused on primarily providing housing loans.

 Scrip NameMonthly Returns(%)
Brightcom Group65.2%
Start Health And Allied Insurance50.1%
Can Fin Homes 37.9%
Bajaj Finserv35.4%
Ceat35.4%
Adani Total Gas33.2%
Adani Transmission 32.4%
Bajaj Finance 30.8%
Aster DM Healthcare30.6%
Anupam Rasayan India29.2%
IndusInd Bank29.0%
Kajaria Ceramics26.1%
Sobha26.0%
Godrej Properties24.5%
Aegis Logistics24.1%
Dalmia Bhart24.1%
Schaeffler India23.7%
Gujarat Fluorochemicals23.6%
Asian Paints23.6%
Gujarat Narmada Valley Fertilizers23.3%
Dilip Buildcon23.3%
Avenue Supermarts23.2%
Oberoi Realty23.0%
Tata Steel 22.1%
Timken India21.9%
India Cements21.7%
Titan Company21.5%
SBI Life insurance company21.2%
DLF 21.2%
SBI cards and Payments21.1%
Equitas Holdings20.8%
Hindalco20.6
Great Eastern Shipping Company20.1
Cummins India20.0%

Bajaj Finserv

The share price of Bajaj Finserv Ltd. gained 2.77 per cent in Friday's trading session. During the trade, the share price opened with a gap up and touched a high of 15,201.00. It then closed nearly 2.77% higher at Rs. 15,047.60. During the session, the stock fluctuated between 14,812.15 and 15,000.00.

In the last month, the Bajaj Finserv share price has risen from 11,109.75 to 15,047.60 levels, representing an increase of about 35.44 per cent.

On July 28, the company reported a 57% jump in net profit at 1,309 crore in the June ending quarter as against a net profit of 833 crore.

Bajaj Finserv's consolidated total income during the April-June period was up 14 per cent to 15,888 crore. The company also announced a stock split and the issue of bonus shares during its meeting.

Bajaj Finserv (BFS) is the holding company for various financial services businesses under the Bajaj group. It has a 52.49 per cent holding in Bajaj Finance (BFL) and in the life, general, and health insurance businesses through its 74 per cent (each) holding in two unlisted subsidiaries, BAGIC and BALIC.

It also holds an 80.13 per cent stake in Bajaj Finserv Direct Limited (BFSD), which is a digital marketplace for financial services products ranging from loans, insurance, mutual funds, investments, lifestyle products, and payments. The balance, 19.87 per cent, is held by BFL, according to media reports.

Ceat Ltd.

Ceat Ltd. is the fifth top gainer in the BSE500 index with returns to the tune of 35.33% in the last month. This auto tyre company’s stock is rising for three consecutive sessions, gaining 3.17% in the past week.

Over the last month, the stock outperformed the nifty auto index. The stock price went from 931 to 1,260 in the last month, delivering a return of 35.33 per cent, while Nifty Auto was up by 5.85% in the same period. At current levels, the stock is trading 41.63% above its 52-week low of Rs. 890.

On the technical charts, the stock is trading at14.41% higher than its 200-day moving average and 20.34% higher than its 50-day moving average.

The company recently launched its ultra-high-performance tyres for the luxury segment. The company previously launched the same tyre range in Europe back in 2017. Experts believe this will help the company in the long run as the Indian luxury market is growing at double digits.

The industry estimates around 17,000 luxury vehicles were sold in India between January and June, which is an increase of 55% over the 11,000 units sold in the year-ago period, ET reported.

In the last few months, tyre stocks were under pressure due to a rise in crude oil prices. The tyre industry is one such industry that is heavily reliant on crude oil. Crude oil derivatives such as carbon black, synthetic rubber and nylon tyre cord fabric together make up nearly half the cost of producing a tyre.

However, the recent fall in crude prices has given some relief to the industry. Crude oil prices have been declining in recent weeks as a result of fears about the recession and soaring inflation in major nations. Both WTI and Brent are back to $100 levels.

Meanwhile, FIIs have reduced their stake in the company to 22.5% in June 2022, from 24.0% in June 2021. Promoter has increased thier holdings from 47.11% to 47.21% in the June quarter. While Mutual funds hold a 7.53% stake in the company and regular shareholders own 19.2 per cent.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

Article
Impact of bond yields on stock markets
First Published: 01 Aug 2022, 10:32 AM IST