Every day when the markets close, there are new top gainers for the day. Somedays, a company can top the list, and the very next day, the company may lose its position and end up being on the top of the top losers list. While this daily list can be difficult to judge and make decisions, a list for a longer period can be a better guide and help in making decisions for your investments to end up profitable. Hence, catering to your needs, this article will talk about the Top Gainers for the past 6 months, along with the necessary details of those stocks to help you analyse and pick the stock that best suits your portfolio.
The Best Stocks of 2022-23
|Stock Name||Change Percentage||52 Week High-Low (₹)|
|ITC||22.6%||210.6 – 394|
|HCL Technologies||15.4%||877.4 – 1215|
|Axis Bank||13.5%||618.2 – 970|
|Ultra Tech Cement Ltd||6%|
We will discuss these stocks one by one ahead
ITC was established in 1910 and operates in different business segments namely – FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri-Business. They have a majority of their revenues from India, and others are from the exports they make.
The company has been making great revenues and is currently among the top 3 when compared with its peers. The revenue for the year ending 2022 was Rs. 60668 Crores, which came after an almost 20% rise from the previous year’s figures. They have had an operating profit margin of 35% and a net profit margin of 25.5% in the year ended 2022.
In the previous quarter, the mutual fund holding of the stock increased, and the PE ratio of ITC is 26.3 which is much lower than its sector PE of 35.1, which gave out a good deal to its investors. The company is also debt-free giving out another positive sign, and it also showed a growth of 23.4% on its YoY quarterly net profit in the previous quarter.
Not to miss out on the fact that its sector’s average net profit growth YoY for the quarter was 21%.
2. HCL Technologies
HCL is ranked among the top 5 IT services companies in the country. The company has offices and networks in 46 countries and provides multi-service delivery in key industry verticals.
The company’s segment-wise and country-wise breakups of revenue are as below
Segment-wise revenue breakup FY22
- IT and Business Services – 72%
- Engineering and R&D services – 16%
- Products & Platforms – 12%
Geographical Split FY22
- America – 56%
- Europe – 27%
- India – 4%
- Rest of the world – 13%
The revenue of the company has been rising with an average rate of 14% since 2018. As far as the previous year’s profits and revenues are concerned, the company has been able to sustain its value in the top 3 among its competitors. The net profit was Rs. 13524 Crores and revenue was Rs. 85651 in the year ending March 2022.
Price to Earning Ratio is 20.5, lower than its sector PE ratio of 50.2. Return on Equity(ROE) for the last financial year was 21.8%, more than 20% in the last financial year, indicating an efficient use of shareholder’s capital to generate profit. The debt to Equity Ratio of 0.1 is less than 1 and healthy. This implies that its assets are financed mainly through equity. Stock Price fell 0.3% and outperformed its sector by 4.7% in the past year.
3. Axis Bank
Axis Bank is the third largest private sector bank in India. They offer services to MSESs, Agriculture and Retail Businesses and Large and Mid-Corporates. The bank is also one of the largest credit card providers in the country.
The bank maintains a Capital Adequacy Ratio of 18.54%, which is one of the lowest among its peers. The revenue of the bank was Rs. 68846 Crores in the year ending March 2022 and the net profit for the same period was Rs. 14164 Crores. The Net Interest Margin of the bank for the year 2022 was 2.83%, which was again among the lowest when compared to its competitors.
Promoter Share Holding decreased by 1.5% in the most recent quarter to 8.2%. The Price to Earning Ratio is 12.7, lower than its sector PE ratio of 22.1. Quarterly Revenue rose 29.4% YoY to Rs 28,083.9 Crores. Its sector’s average revenue growth YoY for the quarter was 20.9%. The debt-to-equity ratio of 1.7 is higher than 1. The inference here can be that the company assets are financed through debt. Mutual Fund Holding decreased by 0.5% in the last quarter to 23.2.
4. Larsen & Toubro Ltd
They primarily provide services in engineering, procurement and construction (EPC) solutions sectors such as Infrastructure, Hydrocarbon, Power and Process Industries and Defence. Taking a look at the segment-wise revenue distribution of the company, the Infrastructure segment tops with 46% of the total revenues, and the other significant segments of the company are Hydrocarbon Segment.
The revenue of the company was Rs. 1.5 Lakh Crores, which is far ahead of its peers, and similar is the picture with the net profits of Rs. 10,000 Crores for the period March 2022. The debt-to-equity ratio of the company is 0.3, which is much below what most of the peers of the company have, putting the company in a good spot when compared.
Annual Net Profit fell 25.2% in the last year to Rs 8,669.3 Crores. Its sector’s average net profit growth for the last fiscal year was 131.1%. Stock Price rose 21.4% and outperformed its sector by 5.7% in the past year. Return on Equity(ROE) for the last financial year was 10.5%, in the normal range of 10% to 20%. Mutual Fund Holding decreased by 0.3% in the last quarter to 17.7.
5. Ultra Tech Cement Ltd
UltraTech Cement is engaged in the manufacturing and sale of Cement and Cement related products primarily in India. The company has an installed capacity of 114 MTPA in India with capacity utilization of 77%. It also has 23 integrated plants and 27 grinding units, and over 100 ready-mix concrete plants. Other than India, its operations are also in the UAE, Bahrain, Bangladesh and Sri Lanka.
The debt to equity of the company stands at 0.2 which is on the lower side when compared to its peers. The revenue of Rs. 52952 Crores and the net profit of Rs. 7625 Crores for the year 2022 has staged the company much ahead of its competitors. The Return on Equity of the company is 14% which is the highest making the company among the best in its category.
Return on Equity(ROE) for the last financial year was 14.6%, in the normal range of 10% to 20%. Stock Price rose 12.4% but underperformed its sector by 3.3% in the past year. Mutual Fund Holding increased by 1.1% in the last quarter to 13.8. Quarterly Net profit fell 38% YoY to Rs 1,058.2 Crores. Its sector’s average net profit growth YoY for the quarter was -10.7%.
There are many other stocks that have performed extra-ordinarily in the market in the past 6 months. These were stocks, that performed better than others and also have a good image and market capitalization in the present. While the above-mentioned stocks might not have performed well in all aspects, they did provide their investors with some good returns. One should also keep in mind, that past performance of the stock should not be the sole criterion for making investment decisions, while they can provide a track record and an idea of how a stock performs, they do not guarantee future performances too. Hence, making wise decisions means doing proper systematic research.