The markets displayed an exhilarating performance over the past Samvat, surging leaps and bounds over expectations as retail investors took over the reins from the big guys. Nifty 50’s newest entrants Trent and BEL grabbed all the eyeballs, while Nestle India and Bajaj Auto disappointed.
As we bring in the new year, let’s look back at the names that held Dalal Street’s attention over the previous year.
Trent (up 245% in one year)
The Street did not stop buying into the value-for-money fashion retailer’s story, as the Tata group firm was not only one of the top performers in the Nifty 50, but also in the Nifty 500. The latest Nifty 50 entrant.
As a result of solid, continued demand for Westside and Zudio, Trent’s expected revenue growth will likely outperform all other competitors, as its store additions continue non-stop. Most brokerages are bullish on this retail player.
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Bharat Electronics (up 105% in one year)
Defence PSU and new Nifty 50 company Bharat Electronics surged over 100% over the past Samvat, as investors rode the defence theme. Investors believed that BEL was well-positioned for growth on its defensive business model, earnings visibility, and a strong order book.
Bajaj Auto (up 88% in one year)
While Bajaj Auto has taken a tumble on the bourses over the past two weeks, the auto-maker was the darling of investors over the past year, jumping almost 90 percent. However, going forward, Bajaj Auto has trimmed the growth outlook for two-wheeler sales in India to a modest 5 percent, at the lower end of its earlier estimate of 5-8 percent. This cautious forecast comes from a slower-than-expected festival season and weak demand for entry-level motorcycles.
IndusInd Bank (-27% in one year)The private sector lender was the top laggard on the Nifty 50 index with most of the losses coming in after the bank reported its Q2 earnings show. The bank reported a 40 percent drop in Q2 profit, despite a growth in NII. However, there was pessimism regarding the counter ahead of the earnings show.
Bajaj Finance (-8% in one year)
Over the past year, Bajaj Finance's asset quality showed signs of strain, with higher forward flow rates across several segments, prompting the management to increase FY25 credit cost guidance by 20-30 basis points. As a result, investors exited their holdings, causing the NBFC to take a tumble over the past year.
In response to the asset quality challenges, the management has shifted its focus towards tightening risk controls. However, the company reassured investors that borrowing costs are likely to have peaked, hinting at stable margins in the coming quarters.
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