Multibagger stocks: Up to 1,560% returns! These 130 stocks turned multibaggers in Sept quarter

These retail-favourite counters, which include a host of penny stocks, defied gravity and delivered multibagger returns to investors during the September quarter.

According to the data available from Ace Equity, at least 130 stocks turned multibaggers during the July to September period and delivered up to 1,560% returns on a quarter-to-date basis (QTD).

Among them, 15 stocks zoomed more than 300%, whereas another dozen counters have jumped between 200-300%.

Market analysts believe that inflows from FIIs and fears of a recession in some of the major global economies put India in a sweet spot, resulting in the outperformance of Indian stocks.

Avinash Gorakshakar, Head-Research, Profitmart Securities, said that Indian market has remained on the radar of global investors as it is expected to post strong GDP and IIP numbers compared to global peers. “Macro numbers at the domestic level, including GST collection, corporate taxes and personal income taxes have shown a good upside,” he said.

Adding to it, Neha Khanna, Director, Valpro, said that due to the subdued sentiments on recession worries or unrest in some big markets like the US, Europe, and China, India is positioned to attract capital.

The list is topped by a microcap textile player

, whose stock zoomed over 1,560% on a QTD basis. A sum of Rs 10,000 invested in the stock would have become Rs 1.56 lakh during the period.

It is followed by edible oil firm

, another microcap, which has rallied about 1,285% during the same period. An investment of Rs 10,000 would have become Rs 1.28 lakh as of now.
(up 950%), (up 595%) (up 547%) and & Allied Products (up 508%) are also among the top gainers.

Mercury Metals, NIBE, Kore Foods, Acrow India, Mayur Floorings,

, KBS India, and ABC Gas (International) are other stocks that have delivered returns between 300-500% during the quarter.

Goblin India, PC Jeweller, Sreechem Resins, RMC Switchgears,

, Oracle Credit, Synthiko Foils, Optimus Finance, Shree Pacetronix, and have gained more than 200% each.

Mediaone Global Entertainment,

, , Sera Investments & Finance India, AKI India, Haria Apparels, Sonal Adhesives, , Captain Pipes and have also delivered solid returns.

The majority of these companies fall in the category of microcaps, having a market cap of less than Rs 1,000 crore and stock prices in double-digits.

Such companies are considered as traps for gullible retail investors, who flock to these names ignoring red flags such as low promoter holding, high debt, constant loss and muted financials.

For investors looking at investments, our suggestion is to keep in mind valuations, and expansion strategies of companies and identify compounding growth stories, said Khanna.

The trading volumes also play a vital role in lesser-known stocks and must be considered while investing to see if there is enough room to exit, she added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)