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A large number of companies in the Nifty 500 that were ‘multi-baggers’ in the year 2015 can no more claim that tag.
Balloons 102-360% While there were 260 companies whose stock prices remained positive in 2015, this number has come down to 23 in the first month of 2016. Further, of the top 20 gainers from among these 260 companies whose stock prices ballooned in the range of 102-360 per cent last year, only Rajesh Exports and KRBL have managed to hold on to their gains, albeit a marginal 2-5 per cent, according to Capitaline data.
Nifty 500 has fallen 7 per cent year-to-date after remaining flat in 2015. Nifty 50 has slipped 6 per cent since the start of 2016 compared to 4 per cent in 2015.
All-round correction Midcap 100 and Smallcap 100 indices, which had gained 6 per cent each in 2015, have lost 8 per cent and 11 per cent, respectively, so far in 2016. The head of research at a broking firm who didn’t wish to be named, said that January’s correction spread to mid- and small-caps too, after having held ground in the backdrop of large-caps lagging behind in 2015. A weak Chinese economy and devaluation of its currency, no clear sign of pick-up in the domestic economy and slump in commodity prices, especially crude oil prices, forced foreign investors to book profits from emerging markets, including India. FIIs have pulled out ₹10,573 crore so far in January.
Besides the huge acquisition of Valcambi made in July 2015, Rajesh Exports won a couple of orders worth over ₹3,500 crore.
The KRBL stock has been in demand following lifting of the ban on rice imports by Iran in November. Iran accounts for close to 10 per cent of the company’s revenues. Of the top 20 losers in 2015, only Shrenuj & Co has reversed from the negative trend and is trading in the positive zone. In fact, the stock is the top gainer in the Nfity 500 index and is up 76 per cent in 2016 till date.
Analysts are positive on Shrenuj & Co as new orders and capacity expansion will start reflecting in revenues from the December 2015 quarter. Also, the company is expected to gain from bigger margins.
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