NEW DELHI: 2022 has not been a happy year for many investors in the broader market with the Nifty Smallcap having lost over 15% so far in the calendar year. Smart investors have, however, made money with at least 26 smallcaps turning multibaggers.
Out of them, 5 stocks –
(274%), Choice International (272%), BLS International (231%), Jyoti Resins (200%) and The (194%) – have tripled investor wealth in 2022.
During the year, multibagger BLS International saw multiple triggers, including robust revenue growth, picking of stake by Nomura and issuance of 1:1 bonus share.
The rally in Ugar Sugar has been largely driven by the government’s mandate of achieving 20% ethanol blending in petrol by CY25.
The list of smallcap multibaggers also includes PSU stock
which is up nearly 151% so far in the year-to-date period amid expectations of strong orders and government’s thrust on increasing domestic manufacturing.
Shares of PSU lender UCO Bank have also more than doubled in 2022 amid growth in credit offtake in India and relatively cheaper valuations.
Other smallcap multibaggers in the list includes , TCPL Packaging, KPI Green Energy, TGV SRACC, Speciality Restaurants, , The , Raymond, , , Bharat Dynamics, The , , , Lloyds Metals & Energy, , Shanthi Gears, Shoppers Stop and Rossell India.
What should investors do?
Sectoral analysis of the winners of 2022 shows that Nifty PSU Bank index and Nifty CPSE index have been the top two gainers of the year with an upside of 65% and 19.5%, respectively, so far. On the other hand, the IT index has been the top wealth eroder and has so far lost over one-fourth of its value.
The consensus on Dalal Street for 2023 seems to be in favour of domestic economy focused stocks. Delhi-based trader and investor Rakesh Bansal has picked PSU stock GAIL India as his multibagger stock for the new year. “GAIL is a potential multibagger story. Investors with a long-term time horizon can look at buying the stock now for a potential target of Rs 300 in the next 1-3 years,” recommends Bansal.
For smallcap hunters, JM Financial has recommended Arvind Fashion,
and . HDFC Securities likes Zensar Tech and CPCL while SMC Global is bullish on .
In the past, it has been observed that Nifty rallies about 20% on average after breaching its all-time high.
During Nifty’s journey to a new high, markets tend to be sector agnostic. However, midcaps and smallcaps tend to do much better than the Nifty, domestic brokerage firm YES Securities said.
Motilal Oswal expects two themes to play out in 2023 – credit growth and capex. Sectors like BFSI, capital goods, infrastructure, cement, housing, defence, railways could be in focus.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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