The current government at helm is about to complete its tenure of 5 years in a month. Let us look at how the companies fared during these 5 years in the blog “Stock market returns in the 5 years of Modi government”. I have used the below data points:
Start date: 16 May 2014
End date: 16 April 2019
Market cap as on 16 April 2019
Standalone Net sales, PAT & Total assets for FY19.
Stock market returns in the 5 years of Modi government
List of Companies which has given more than 10 times returns in the last 5 years
When compared with similar returns a year back in this blog, there was 9 companies which gave a return of more than 25 times(25X) compared to just 5 giving a return of over 25x in the current analysis. The bear market which started with the IL&FS crisis lasted for about 6-7 months had sent most of the stocks to their 52 week low, thus reducing the returns of many multibaggers.
There were 3 companies featuring in both the lists: Sadhana Nitrochem, Uniply Industries, Associated alcohols. All three of them are small cap stocks with market capitalization < ₹1000cr. Stock market returns in the 5 years of modi government
Stock market returns in the 5 years of modi government
I was trying to understand the reason why these 5 stocks gave such a mind boggling return and what can we learn from them. Please find below a very short analysis for the top 5 return givers:
Sadhana NitroChem- Analysis
Uniply Industries- Analysis
Associated Alcohols & Breweries- Analysis
Olectra Greentech- Analysis
Minda Industries-Analysis
Further reading: I am sure there might be other company with similar number but due to some or the other reason have not got given similar returns.