The Indian stock market faced a tumultuous beginning in the year 2023, with Nifty 50 and Sensex experiencing significant volatility in the initial months. However, things took a drastic turn for the better in April when the markets witnessed a strong comeback, and have been on a bull run since then.
Amidst this resurgence, a handful of Nifty 500 stocks have emerged as shining stars, delivering exceptional returns of over 40% in 2023 so far. These stocks have defied market conditions and have managed to outperform their peers.
Let's take a closer look at these companies and what has driven their impressive growth.
The first company on the list was Apar Industries, a manufacturer and supplier of conductors, a wide variety of cables, speciality oils, polymers, and lubricants. The stock has surged by over 54% since the start of the year, moving from ₹1,793 apiece to the current level of ₹2,772.80.
The growth is attributed to the company's strong financial performance in Q3FY23 and increasing demand for its products from end-users such as the power, infrastructure, railways, defence, and marine sectors.
During the October-December quarter of FY23, the company reported a 210% YoY jump in its consolidated net profit at ₹170 crore. The company's net profit was driven by strong operating performance.
The operating profit during the quarter came in at ₹347 crore, an increase of nearly 196.58% YoY, while the EBITDA margin expanded by 400 basis points to 9%.
Next up is Finolex Cables, the leading manufacturer of electrical and telecommunication cables in India, has witnessed a remarkable surge in its stock price this year. It has recorded an impressive rise of 53.17%, increasing from ₹547 apiece to the present position of ₹837.85.
The recent rally in the stock can be attributed to various factors, such as the company's impressive performance in the December quarter and the government's substantial increase in capex outlay by 33% to ₹10 lakh crore for FY24.
Since the Q3 FY23 earnings announcement on February 09, the stock has experienced a one-way rally from ₹548 apiece to ₹837.85, resulting in a stellar return of 52.89%.
On April 10, the stock climbed 3.65% to mark a new record high of ₹895 apiece.
Sonata Software was another star performer in 2023 so far. The company's shares have climbed from ₹563.70 apiece to ₹848.65, yielding a fabulous return of 50.54%. This recent stock boom has resulted in a stunning 536% gain over the last three-year period.
Additionally, the stock has exhibited a substantial growth of over 41.51% in the last one-year period, in contrast to the movement in the Nifty50 index, which has increased by only 2% during the same period.
Sonata Software is a leading modernization and digital engineering company, headquartered in Bangalore, that provides services using its proprietary Platformation approach.
JBM Auto, an auto ancillary firm was another top gainer. The stock has given impressive returns, with its stock price surging from ₹516 apiece to ₹756.95, generating a return of 46.70%.
Over the last 10 years, the stock has seen a surge of around 13,662%, growing from ₹5.5 apiece to around ₹756.95. It has also given multi-bagger returns in the last 3 and 5 years, rallying 1262% and 334%, respectively.
Lastly, we have Anupam Rasayan India, one of the leading companies in India engaged in the custom synthesis and manufacturing of speciality chemical.
In 2022, the company shares have underperformed the market, losing 31.6% of their value, steadily falling from ₹990 apiece to ₹679.45.
However, the shares have made a strong comeback in 2023, registering a gain of almost 45.56% so far. Notably, the majority of these gains occurred in March, with a remarkable rally of 34.13%.
During the last trading session, the stock jumped 4.5% to hit a record high of ₹993.8, surpassing its previous high of ₹958.
The Indian chemical industry is experiencing a shift in trend as local players are being chosen as preferred manufacturing partners for key products that were earlier made in Europe.
In an exchange filing on Thursday, March 23, the company said that it had been awarded a letter of intent (LoI) for the next six years from a leading Japanese chemical company, worth ₹984 crore, to supply new age advanced intermediate for life science active ingredient.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
