To get more than 50 per cent returns from a large cap stocks in one year is certainly phenomenal. But, the euphoria surrounding Modi's coronation as Prime Minister has seen many stocks rallying and the indices gaining ground.
One can understand an infrastructure company like L&T rallying 50% on hopes that the government would provide an infrastructure push. But, out of the 5 stocks we have analysed, four are from the pharma sector, not much push the government can give the sector. Here go the list of stocks that have given more than 50 per cent returns.
1) Lupin Labs
On May 25, 2014, Lupin Lab closed at Rs 909 on the National Stock Exchange. A year later the stock is quoting at Rs 1775. As we write the stock is likely to find its place in the Sensex. The stock has given a returns of almost 95 per cent in the last one year. The stock is a pharma company and like all other pharma stocks has seen a stupendous rally in the last one year.
Like Lupin, Cipla too has given solid returns. The stock which was trading at Rs 360 on May 25 has now rallied to Rs 659.10 on May 25, a return of almost 73%. Investors continue to be optimistic on the pharma sector, though the weightage of most of these stocks in the Nifty and Sensex is not very high. Most of the stocks in the sector are highly valued.
3) Sun Pharma
This is the 3rd pharma stocks that find its way into the highest returns among large cap stocks. The share price which was trading at Rs 590 on May 25, 2014, has closed at Rs 1001, on May 25, 2015. Everything has happened in Sun Pharma from the takeover of Ranbaxy Laboratories to sale of stake by Daiichi.
|Share||Price on May 25, 2014||Price on May 25, 2015|
|Lupin||Rs 909||Rs 1775|
|Cipla||Rs 360||Rs 659.10|
|Sun Pharma||Rs 590||Rs 1001|
|Maruti||Rs 2340||Rs 3700|
|Dr Reddy's||Rs 2301||Rs 3584|
4) Maruti Suzuki
For a change we do not have a pharma stock. Maruti has rallied from Rs 2340 on May 25, 2014 to Rs 3700 on May 25, 2015. Robust demand for vehicles and lower raw material costs have helped boost sales at the company. Analysts see more upside in the stock in the coming months.
5) Dr Reddy's Labs
Dr Reddy's Labs has rallied from Rs 2301 on May 25, 2014 to the current levels of Rs 3584. Investors continue to chase pharma stocks despite that high valuations. How far these stocks would go is difficult to tell.