Stocks on the lucky 7 list include names like Alankit, Chowgule Steam, HBL Power System, 3i Infotech, Bartronics India, Vikas Ecotech, and Mahamaya Steel.
The S&P BSE Sensex which hit record highs earlier in the year 2017 lost some momentum towards the closing of the year weighed down by both local as well as global factors. But, there are plenty of stocks which have hit double-digit returns in at least 4 out of 5 years.
If not the whole market Santa Claus rally is seen in 7 stocks on the BSE which have given double-digit returns of up to 54 percent in the last 4 out of 5 years, according to data from Capitaline showed.
Most of the stocks belong to the small and midcap segment but a consistency of returns on year-on-year period makes them stand out. The year 2016 was a washout year as benchmark indices closed on a flat note; hence not many stocks gave stellar returns.
Topping the charts is Alankit which has given double-digit returns in all the five years along with Chowgule Steamships Ltd. Alankit Ltd is the flagship company of Alankit Group which is a leading e-Governance service provider in India.
Major services offered by the company is TIN Facilitation Center and PAN Center, authorized person for National Insurance, UID enrolment (Aadhaar), Aadhaar Seeding, Printing of PVC Aadhaar card etc. among others.
Other companies on the list include 3i Infotech which is a global information technology company committed to empowering business transformation. The company also provides solutions for other verticals such as Government, Manufacturing, Retail, Distribution, Telecom, and Healthcare.
HBL Power Systems Ltd which is in business since 1977 gave up to 31 percent return in the month of December alone in 4 out of 5 years. Their expertise are in batteries generated opportunities.
The first products selected and successfully developed were Aircraft batteries - eventually leading to HBL offering the world’s widest range of specialized batteries.
Bartronics is engaged is engaged in the business of Bar Coding and Smart Card technology, the company made a foray into the field of Automatic Identification & Data Capture (AIDC) solutions.
Vikas Ecotech which has given up to 40 percent return in the last 4 out of 5 years is an emerging player in the global arena of the high end specialty chemicals players.
Mahamaya Steel deals with the manufacturing steel structures in the shape of Angles, Beams, Joist, Channels, Rounds, Flats, Railway sleepers etc. It has high capacity structural rolling mills with full-fledged supportive SMS.
Mahamaya is one of the few in the country who manufactures 600 MM joist and 250 MM angles, and the turnover of the group is close to Rs1000 crore. The stock gave up to 30 percent return in last 4 out of 5 years in the month of December.
Unlike the rest of 2017, the month of December might be tough on bulls. The S&P BSE Sensex which climbed Mount 33K is now trading around 32,700 levels.
Benchmark indices climbed to record highs in the month of November but since then the trend shifted downwards.
It looks like market participants prefer to be on the sidelines ahead of key events such as US Federal Reserve policy meet and back home, the outcome of state election results. However, analysts advise investors to buy stocks on dips whenever possible as the structural bull market is still intact.
Nilesh Shah, MD, and CEO of Envision Capital sees a shallow correction for the Street. “It looks like there could be 4-5 percent correction ahead. That is how markets have behaved and it is unlikely to move in some other way. This could be year-end profit booking,” Shah told CNBC-TV18 in an interview.
Will political outcomes from state and general elections ahead make any impact on the market ahead? Shah said he won’t be surprised if political debate takes over the market between 2018 and 2019.
Frontline indices are going through a corrective phase, with the Nifty shedding around 300-350 odd points from record highs.
While some investors could raise concerns over it, but market veterans such as Madhusudan Kela see this time as a positive thing.
“There are plenty opportunities which are there in the markets, both in midcaps and large-caps. Corrections like these give investors to capture the opportunity,”Kela told CNBC-TV18 in an interview.
Further, he said that such a correction was long overdue as there has not been one since Nifty’s levels of around 7,800.Speaking on the impact of upcoming Gujarat elections, Kela believes that if the verdict goes, either way, a meaningful correction is unlikely.