Five Stocks That Doubled Investor Wealth In The Past One Year

It may seem a bit odd to speak about stocks that have returned over 100% gains in the current market amid uncertainty and volatility. However, investors may take heart from the fact that there are stocks that stand out during these turbulent times.

The S&P BSE Sensex and the BSE 500 have not declined much, nor have they given any big returns either in the past one year. The Sensex rose 0.12% while the BSE 500 advanced 2.8%. These five stocks have doubled investor wealth in the past one year. 

Shares of Mazagon Dock Shipbuilders Ltd. surged 156.24% in the past one year, showing a steady uptrend since 2022. 

State-owned MDL is engaged in the construction and repair of warships and submarines for the Indian Navy on behalf of the Ministry of Defence. It is the only shipyard that makes both destroyers and conventional submarines, as well as other vessels for commercial clients. 

The company has registered a revenue growth of 10.5% CAGR over FY13–22, while Ebitda and PAT rose 3.6% and 3.9%, respectively, due to a fall in operating margins. The stock has hit a 52-week high of Rs 936.85 and is trading at a price-to-earnings ratio of 14.32. The stock's return on equity is 24.05%.  

Shares of Varun Beverages Ltd. jumped 110.53% in the past one year. 

VBL is the second-largest franchisee of PepsiCo outside the U.S. Products manufactured by the company include carbonated soft drinks, including Pepsi, Mountain Dew, Seven Up, and Mirinda; non-carbonated beverages, such as Tropicana Slice and Tropicana Frutz; and bottled water, like Aquafina. The company accounts for around 90% of PepsiCo’s beverage sales volume in India and is present in 27 states and seven union territories. It is also the exclusive bottler for PepsiCo in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.

The company reported strong volume growth of 17.8% in Q4 2022. Strong volume and a superior product mix were the driving factors in the 27.7% year-over-year increase in sales. Ebitda rose 48.1% year-on-year to Rs 307.5 crore, with margins at 13.9%. Consequently, PAT was at Rs 81.5 crore, up 2.5 times.

Shares of VBL have hit a 52-week high of Rs 1,432.05 and are trading at a price-to-earnings ratio of 69.60. The return on equity is 23.02%.  

Mahindra CIE Automotive Ltd. has more than doubled, giving a return of 104.08% in the past one year.  

MCI, part of the Spain-based CIE Automotive Group, is a multi-technology, multi-product automotive component supplier. In the calendar year 2022, 36% of its consolidated sales came from Europe, while 64% came from India. Forging is about 59% of consolidated sales, with 78% of it coming from Europe. In India, it derives 49%, 23%, 20%, and 8% of sales from passenger vehicles, two-wheelers, tractors, and medium and heavy commercial vehicles, respectively. In Europe, it now derives 75% of sales from passenger vehicles.

Shares of MCI have hit a 52-week high of Rs 462.05, and the stock is trading at a price-to-earnings ratio of 26.33. The stocks have given a return on equity of 11.45%.  

Shares of UCO Bank Ltd. have surged 103.84% in the past one year.

The state-run bank got out of the "prompt corrective action" regulatory system in August 2021. In its first year, it turned the corner and made a profit of Rs 938 crore. It is now targeting a profit of Rs 2,500 crore in fiscal 2024. 

UCO Bank's net profit jumped 110% to Rs 652.97 crore in the third quarter of the current fiscal, against Rs 310.39 crore in the corresponding quarter a year ago. The net interest income rose 10.74% year-on-year to Rs 1,951.87 crore from the same period a year ago. Non-performing assets fell to Rs 2,406.90 crore in Q3 FY23 from Rs 3,333.59 crore the previous year.

The stock hit a 52-week high of 38.15 and is trading at a current market price of Rs 23.9. It is trading at a price-to-earnings ratio of 17.94. It has delivered a return-on-equity of 6.54%.  

Shares of Finolex Cables Ltd. jumped 102.92% in the past one year. 

The company is the market leader in electrical wires and has a strong brand, a robust balance sheet, a pan-India distribution network, and strong free cash flow generation. However, performance over the last few years has been mixed. Brokerage house Systematix expects margin expansion, diversification into consumer-facing businesses, and around 20% PAT CAGR, which led to a significant re-rating in the stock price in the five years to FY18. After that, the stock derated, mostly due to flat earnings in its core businesses, a lack of scale in FMEG, and lower return ratios from FY17 through FY21. Systematix thinks that the biggest risks for the company are the sharp changes in copper prices and the fact that new businesses keep losing money.

The stock has hit  a 52-week high of Rs 847.60 and is trading at a price-to-earnings ratio of 25.57 with a return-on-equity of 13.80%.