Murugappa Group is one of the leading business conglomerates in India, with a history spanning over 100 years. The group has a diverse range of businesses, including engineering, abrasives, finance, farm inputs, bio-products, bicycles, auto components, and plantations.
The group owns brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry's, Chola, Gromor, Shanthi Gears, and Paramfos. It has a strong presence in major countries across the world, including the USA, UK, Germany, China, and Australia.
The Murugappa Group has 28 businesses, of which ten are listed on the stock exchanges. Among these, five have delivered exceptional returns to investors in the fiscal year 2023.
Shanthi Gears has emerged as the top performer with a return of over 100%.
Shanthi Gears is an industrial gearing solutions company that designs and manufactures gears, gearboxes, geared motors, and gear assemblies. The company shares have witnessed a strong spike since July last year, moving from around ₹188.50 apiece to ₹371, representing a return of 96.81%. Overall, in FY23, the stock delivered a multibagger return of 104%.
Wendt India was another star performer in the Murugappa group. The company is a leading manufacturer of super abrasives, machining tools, and precision components.
In the fiscal year 2022-2023, the stock gained 68.14%, rising from ₹5,060 apiece to ₹8,508. The stock has climbed 371% from its March 2020 low of ₹1,781 to its current market price.
Between March and June last year, the stock soared 82% to hit an all-time high of ₹9,195. The stock has witnessed a significant increase of 69% from its one-year low of ₹4,975 apiece, and it has generated an astounding return of 630% in the last ten-year period.
Another top gainer that stole the limelight in the group was Tube Investments of India. This stock soared from ₹1,624 apiece to ₹2,546 in FY23, generating a fabulous return of nearly 57%.
The company is one of India’s leading manufacturers of a wide range of products for major industries such as automotive, railway, construction, mining, and agriculture. The company delivered a strong performance in the first nine months of FY23, with its net profit growing quarter after quarter.
CG Power & Industrial Solutions stood as the fourth-top gainer in the group. The stock has gained 56% in the last fiscal year, in contrast to the movement in the Nifty50 index, which has declined by almost 0.60% in the same period.
After progressively declining between 2015 and 2020, losing over 95% of its value, the stock regained momentum in March 2020 at roughly ₹5.05 apiece. It has remained in the same trend to this day, hitting ₹299 levels and producing massive gains of 5820%. In addition, on February 14, 2023, the stock reached a 12-year high of ₹338.60.
The majority of the stock's gains occurred in CY2021 with a rally of 332%. During this time, it also added ₹21,451 crore to its market capitalization. At current levels, it is 16% away from reaching its all-time high of ₹345, which it hit in November 2010.
Finally, investors in Carborundum Universal enjoyed a return of 23.67% as the stock price went from Rs. 797 to Rs. 985.70 in FY23. The company is the largest high-alumina ceramic manufacturing company in India. It manufactures and sells mainly abrasives, ceramics (industrial ceramics, refractories), and electro minerals.
Other stocks in the group, including Cholamandalam Investment & Finance Company, Coromandel International, and EID Parry India, also witnessed gains in the range of 5–12% in FY23.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
