2024-10-08 20:43:58
New Delhi: This year both Sensex and Nifty reached record highs. But, many stocks which proved to be multibaggers last year (FY 2023-24) fell badly in the first six months of this year (FY 2024-25). There are at least 11 stocks which gave returns of up to 938% in FY 2023-24. However, it has made a loss of more than 25% in this financial year. These stocks include Vodafone Idea, Global Health, Kamdev, GVK Power & Infrastructure, Sanghvi Motors, HLV, Maharashtra Seamless, Sun Pharma Research and some others.
These shares are from different sectors
These shares facing decline are from different sectors. These include pharmaceuticals, infrastructure and real estate. Among the prominent names is Vodafone Idea. This had increased by about 127% in the last financial year. It has fallen nearly 25% so far in the current financial year. The company is struggling with debt burden. This has increased further after a decision of the Supreme Court. The court had rejected the request of recalculation of adjusted gross revenue (AGR) dues of telecom companies.
Performance of companies: Financial years 2023-24 and 2024-25
Company NameGrowth in FY24(%)Decline in FY25(%)Last Mile Enterprises937- 40QPID864- 33GVK Power & Infrastructure373-35Sunshine Capital297-43Sanghvi Movers287- 43HLV186- 34Jaiprakash Associates159- 60Global Health152 – 26Maharashtra Seamless137- 25Vodafone Idea127- 25Sun Pharma Advanced Research Company106- 43
Kamdev, a company specializing in manufacturing contraceptive products, had registered a handsome profit of 864% in the financial year 2023-24. However, the tables turned in the financial year 2024-25. The company’s shares dropped 33% in just six months.
Meanwhile, GVK Power & Infrastructure also had a stellar performance with a growth of 372% in the financial year 2023-24. The government’s efforts at infrastructure development had boosted investor sentiment. However, the first half of the financial year 2024-25 brings a different story. The stock has fallen 34.63%. GVK Power focuses on energy, transportation and infrastructure projects.
Sunshine Capital is another stock that was expected to turn into a multibagger in FY 2023-24. But, it lost its momentum this year. The price of this asset management financial services company had increased by 428% last year. Unfortunately, it has registered a huge decline of 42.82% in the financial year 2024-25.
What should investors do?
Analysts said most of the stocks that have registered massive gains have become victims of uncertainties in the broader market. Investors are cautious about valuation. He said that after the kind of returns seen in mid and small cap stocks in the last few years, a decline is inevitable.
Analysts say that the Indian stock market is going through a period of challenges. Geopolitical uncertainty has engulfed the markets in recent times. Global factors such as rising oil prices and withdrawal of foreign portfolio investments (FPIs) to China are further adding to the pressure.
(Disclaimer: The recommendations given in this analysis are those of individual analysts or broking companies and not of NBT. We advise investors to consult certified experts before taking any investment decision as stock market conditions can change rapidly.)