Up to 458% returns in FY24 so far, 7 capital goods stocks now trading at discount from 52-wk top

Average returns by 27 stocks in the S&P BSE Capital Goods index are nearly three times higher than those given by S&P BSE Sensex in the financial year 2024 so far. Out of these, seven stocks have given multibagger returns of up to 458% during this period and yet trading at a nearly 30% discount from their 52-week high.

The returns by S&P BSE Capital Goods index in FY24 so far have been 64% versus 23% by S&P BSE Sensex.

Smallcap counter Transformers & Rectifiers (India) tops the charts with 458% returns in FY24 so far. It was trading at a discount of 19% from its 52 week high. Incorporated in 1994, Transformers & Rectifiers manufactures a wide range of transformers, which conform to the quality expectations of both the domestic and the international market. Ace investor Madhuri Madhusudhan Kela has 3.91% stake in the counter. In the current quarter the stock has gained 38% while its highest returns have come in the June 2023 quarter where the stock has appreciated by 73%.


The others are Shilchar Technologies (381%), Advait Infratech (330%), HPL Electric & Power (244%), Bharat Heavy Electricals (BHEL, 221%), Sanghvi Movers (188%) and Action Construction Equipment (166%).

For Shilchar Technologies, returns in Q4FY24 so far have been 43.45% while highest returns came in the September quarter at 67.13%.

Advait has delivered 101% returns so far in this quarter which is also its highest in the last four quarters.

HPL Electric's highest returns in the last four quarters were in the September quarter at 63.96% while in the current three-month period so far, the returns have been to the tune of 16%.

State-run BHEL has given 16% returns in this quarter but its highest returns in FY24 was 49.33% in the September quarter.

Sanghvi Movers Q4FY24 returns so far have been 23% while maximum returns of 41.41% were accounted for in the September quarter.

Action Construction's Q4 returns stand at 30.63% while top returns of 40.55% was reported in the September quarter.

Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking remains positive on BHEL for a target of Rs 260+. The stock is in an uptrend and taking support at 50-dma at Rs 220, he added.

Analyst Aamar Deo Singh, Senior Vice President-Equity, Commodity & Currency at Angel One, said that BHEL appears to have made a short-term top with the stock losing over 12% in the week so far. The stock has strong support around the Rs 180-200 which could offer good buying opportunities whereas resistance is seen around the Rs 250-260 zone, he added.

He warns against the overall market sentiments which have been dented amid profit booking coupled with mixed global and domestic trends.

(Inputs by Ritesh Presswala)

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