Trent, M&M steal spotlight as top Nifty gainers in 2024; IndusInd Bank, Asian Paints lead the laggards pack

Trent, the Tata Group retail giant, has been a stellar performer, doubling its stock price for the second consecutive year. This marks a remarkable growth trajectory for a stock that has delivered positive returns annually since 2014. The rally has been driven by the company’s robust financial performance, aggressive retail expansion, and the scaling up of its Star business.

Additionally, the company has made significant strides in leveraging its digital presence, boosting investor confidence. With consistent Same-Store Sales Growth (SSSG) and improving profitability, Trent made headlines by entering the prestigious Nifty 50 index in September, cementing its position as a top performer.

M&M | +76% YTD

The stock is a turnaround story and has had its best year in terms of returns since 2009. This strong performance has been driven by the automaker's successful foray into electric vehicles (EVs) and an expanding market share in the SUV segment. The company’s revenue market share in the SUV space increased by 190 basis points during Q2FY25, while the launch of the Thar Roxx was met with positive customer reception. M&M also unveiled its "Born Electric" SUV lineup, including the BE 6e and XEV 9e, further solidifying its position in the EV market with deliveries slated to begin in early 2025.

Bharat Electronics |+58% YTD

Bharat Electronics, the public sector defence heavyweight, has been one of the top performers in the Nifty 50, driven by robust government spending on defence and significant order inflows. The company's strong top line growth and margin expansion in Q2FY25 were impressive, with management maintaining its guidance for FY25. Bharat Electronics’ stock also gained significant momentum after entering the Nifty 50 index in September, further boosting investor confidence in the defence sector's growth prospects.

Bharti Airtel | +54% YTD

Bharti Airtel has been a consistent performer in the stock market, delivering positive returns every calendar year since 2019. In 2024, the telecom giant achieved its best performance in a calendar year since 2017, with the stock gaining a significant 54 percent. This remarkable growth comes despite several challenges, including the legal battle over the curative petition filed at the Supreme Court to set aside the penalty and interest imposed in the September 2019 ruling.

Additionally, Bharti Airtel managed to add more subscribers in October, a positive contrast to its competitors, Jio and Vodafone Idea, which faced subscriber losses.

Sun Pharma | +47% YTD

A strong presence in the high-margin specialty segment: Sun Pharma is way ahead of rivals Dr Reddy's and Cipla, seen as the strongest growth driver. The company has delivered good profit growth of 23.4 percent CAGR over the last 5 years and maintained healthy dividend payout of 46.6 percent. While the company's US sales were subdued in the second quarter due to regulatory issues impacting its Mohali plant, there is optimism in the market. With the plant now receiving regulatory clearance, analysts expect Sun Pharma’s US sales to normalise in the coming quarters.

Not all stocks in the Nifty universe had a dream run on the bourses this year. Here’s a look at the top laggards in the Nifty pack:

IndusInd Bank | -40% YTD

IndusInd Bank has been the worst performer in the Nifty 50 universe, with a steep decline of over 40 percent year-to-date. The bank’s exposure to microfinance, coupled with a surge in slippages (up by nearly 18 percent sequentially in Q2FY25), has weighed heavily on its financial performance. While the bank plans to sell Rs 1,573 crore worth of microfinance loans, investors will closely monitor its efforts to improve asset quality and loan growth.

Asian Paints | -33% YTD

Asian Paints, India’s largest decorative paint player, has faced a tough year, dropping by 33 percent. The company’s market capitalisation loss of Rs 1.07 lakh crore represents the largest loss on Dalal Street in 2024. The stock has been hit by weak demand, margin pressures, and rising competition from new entrants like JSW and the Birla Group. Additionally, a de-rating of its price-to-earnings (PE) ratio has further impacted investor sentiment.

Nestle India | -18% YTD

Nestle India has faced investor scepticism this year, primarily due to reports of high sugar levels in its baby food products, including Cerelac and Nido. While the company has made efforts to reduce sugar content, the market remains cautious. Coupled with challenges like food inflation, rising commodity costs, and sluggish demand in urban areas, Nestle's stock has vastly underperformed in 2024.

Tata Consumer Products | -15.47% YTD

Tata Consumer Products has disappointed investors in 2024, mainly due to the adverse impact of erratic weather on its tea and salt production. Inflationary pressures on input costs have further affected the company, despite implementing price hikes across its tea brands. Tata Consumer’s tea business witnessed a decline in market share, and its beverage and ready-to-drink segments struggled as well.

Adani Enterprises | -15.44% YTD

Adani Enterprises, the flagship company of the Adani Group, has struggled in 2024, facing market downturns, earnings challenges, and regulatory scrutiny. Allegations of bribery in securing power contracts and the ongoing concerns raised by Hindenburg Research about governance and financial transparency have kept investor sentiment subdued, leading to a sharp decline in the stock price.

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