D-Street All Rounders: 7 cos with over 20% earnings growth for 3 quarters turn multibaggers
But was it liquidity alone that drove this rally in stocks or were there fundamental reasons as well backing them?
One possible way to find this out would be to see the earnings performance of the companies.
Data crunching done by ETMarkets showed that 23 companies reported atleast a double-digit year-on-year (YoY) growth in both revenue and profits for three consecutive quarters.
And guess what? About seven of them have given multibagger returns year-to-date, and five of them have done that only in FY24.
The seven ninjas of Dalal Street are Kaynes Technology, Neuland Laboratories, Wonderla Holidays, Elecon Engineering Co, Safari Industries, Sonata Software, Sanghvi Movers, and Power Mech Projects.
Kaynes Technology
The company has reported more than 30% YoY growth in revenue in the last three quarters, data by Ace Equity showed. The bottomline grew by 54% in the September quarter, while it more than doubled in the preceding two quarters.
The stock has given a staggering 230% returns in 2023 so far.
What’s also interesting to note is that mutual funds have also been increasing their holding consistently in the last three quarters.
As of September end, they held 11.71% stake in the company, compared to 5.99% in December 2022.
Brokerage Motilal Oswal Financial Services is bullish on the stock and has a “buy” rating with a price target of Rs 3,100, implying an upside potential of 31% from the current levels.
