Stocks with more than 100% returns 😱


Friends, if I talk about the last year, Last year, the market was really volatile. Us, investors panicked because some days the market went up by 5%, sometimes it went down too Because of all the news that came out. But even in this volatile market, there were some shares that gave its investors more than 100% returns. In this video, we are going to talk about 5 such shares. Which gave its investors more than 100% returns. Yes, friends, those stocks doubled the money of its investors in one year when the market was very volatile. I, Jagdeep Singh welcome you to Groww channel. You must be wondering why there are only five stocks that gave 5% returns. No, friends, there are many shares which gave more than 100% returns but we chose only five stocks randomly We will talk about those stocks about its financials, and also a bit about their business. So that you will get to learn something from it that will help you pick a good stock in the future. Let me tell you about the first stock. The first stock is Ion Exchange. You must be thinking that you have never even heard about it. But friends, this is such a stock whose price was around 350 last October and by this September, it became about 720. So this stock gave its investors more than 100% returns. Let me tell you what this company does. You must know well about pollution. In recent years, pollution increased by a lot. All around the world, many discussion also took place. Every country came up with new rules and regulations in which they told their enterprises that if they want to empty their waste water into water sources It has to be treated beforehand. Because of which many companies came into this sector, because there was more demand in this sector when wastewater had to be treated before emptying it out. To talk about Ion Exchange, its portfolio is rather diversified. How? It works mainly in three sectors. First, engineering. It purifies wastewater into safe water Second, Resin Manufacturing. similar to chemical manufacturing. Because in the chemical industry, there is a chemical that is widely used in water purification. This company also manufactures that chemical. Third, this company it also sells purified water to consumers just like Bisleri and other brands. Let me also tell you another interesting fact about Ion Exchange. India’s famous investor, Rakesh Jhunjhunwala also has investments in it this company. To talk about its financials, it is a small-cap company, its market capitalization is around 1000 crores. In addition to this, the PE ratio of this company is just 13 or 14%. It is considered a good PE ratio, Because for one rupee worth of earning, you are only paying 13 or 14. Debt is very important for any company. Another positive news about this company is that they have reduced their debt level considerably. Until a year ago, its debt level was 130 crores which decreased to 86 crores this year. Because of all this, investors rewarded this company and bought many shares, and this share gave its existing shareholders more than 100% returns. Let’s talk about the second share. Many investors like us think that only small companies give more than 100% returns. But I am going to talk about a large cap company which gave its investors more than 100% returns. Such a company whose market cap is more than 7000 crores, they also doubled their investors money. This company is called Interglobe Aviations also known as IndiGo. IndiGo airlines, which we use in our day to day lives when we have to take a flight to go somewhere. To talk about IndiGo’s share price, in October last year, in 2018, its share price was 760 rupees. Its share price has gone up more than 1800 rupees. Friends, this company has given its investors more than 100% returns. We always think large cap companies are safe. This is just our perception. Big companies too can give its investors good returns. if we believe in it at the right time, and give it a long horizon for investment. About financials, IndiGo’s sales in this quarter has increased when compared to the last and the quarter before that. Apart from this, IndiGo benefited when other companies in aviation sector closed down, because their operations were affected which directly benefitted IndiGo. Other than that, , it’s PE is 54. its borrowing is more than 2000 crores. But its sales improved, and they introduced good changes in their operations because of which its investors got the benefit of its improvement. If you would like to know more about IndiGo’s business, we have done a separate video on it, which you can see at the end of this video. Friends, successful investors always say that such companies grow whose products we use in everyday life. For example, I told you about IndiGo which gave its investors 100% returns. Another such company is whose products we use, even if we don’t, we get to see its name This company is called Bata India. To talk about Bata’s share price, last October its share price was around 850-860 rupees. which has now increased to 1750 rupees. Friends, this company too gave its investors more than 100% returns. What are the reasons for its expansion and how was it able to generate high returns for its investors? Friends, a positive change that happened in Bata is that they improved their margins well. As I talk about in every video, for a company, its margin is very important. Bata focused on it. There was a time when its margin was around 12%. Last year its margin became 16.5%. In this quarter, this year, its margin increased to 18%. When a company’s margin improve, investors think that its operations have improved and is using its raw materials well. Bata benefitted from this, investors went ahead to buy lots of shares because of which the price went further up. Let’s talk about the fourth share now. The fourth share belongs to such an industry about which investors feel skeptical about. because they think that borrowing, debt etc in which there is lending involved there are plenty of problems. But this company belongs to this sector, yet gave its investors more than 100% returns. This company is called Manappuram Finance. To talk about its share price, last year October, its share price was 68 rupees which has now gone up to 140. You can imagine how much money this company made for its investors, The business model of this company is that it gives gold loans to people. And if people default, they do not suffer much loss because they have acquired gold as safety. So their business model is better than other companies that give loan. To talk about its financials, its market capitalisation is more than 11000 crores Its PE ratio is slightly more than 13. Let’s talk about the last company which is Vinati Organics Limited. This company is in speciality business that makes different chemicals which are used in different industries. An important chemical that they make is ATBS. This chemical is used in water treatment sector. As I told in the beginning of the video, in recent years, there was a push in water treatment sector because of which, the demand for the raw material ATBS increased. Many companies used to reuse it. Because of which its demand of Vinati Organics also increased. In the production of this chemical, Vinati Organics share is more than 60%. A lot of it is exported to other countries too. To talk about its share price, until a year ago, its share price was 1150. It has now increased to over 2300 rupees. To talk about its PE ratio, it is around 38. its market cap is around 11000 crores and borrowing is less than four crores. You must have seen that there are only very few companies whose borrowings are very less. Let me tell you after all this discussion, what we get to learn. I will try to tell you in three points. First, whenever you expect more returns do not think that you have to invest in a very small company. Because sometimes big companies also generate returns more than 100%. For example, in this list, there was IndiGo, which is a large-cap company but gave its investors more than 100% returns. In any company more than size, potential matters. How big the company is, is not that important. However, it is important how big it can become. Second important point is debt debt and margins. These two financial parameters are very important for a company. Debt never puts a company on the wrong track, but a company has to use debt in the right manner at the right time. If the debt level of a company keeps on rising, and the company is also expanding at the same time, it is possible that it is utilizing the debt well. But if a company’s debt is increasing and the company is not performing well, then you should exit the company at the right time. Using debt a company can go ahead, but if it is not utilized properly, the company can be negatively affected too. Third lesson is that do not look at past returns and decide that the company will give good returns in the future too. The future returns depends on how the company performs in the future. If it performs well, there will be good returns, if it doesn’t, maybe there won’t be good returns. The list of five stocks that I gave you, it just means that they performed well in the past, so they generated good returns. It was purely for educational purposes. It is not necessary that if you invest in this company and you will get good returns. It may give good returns, and it may not. That depends on its business performance on your research, if you do good research and the company may perform well and may give good returns. If it doesn’t, it may also ruin investors money. Friends, this video was strictly for educational purposes. We do not give recommendations to buy or sell I will end this video with an interesting question for you. I told you in the beginning, these are not the only companies that give this much returns. Maybe you have invested in such a company that gave you 50, 60 or 100% returns. Please comment to let us know about these companies in your portfolio which gave you more than 50% returns. So we can also learn from you and our viewers can learn from one another. If you enjoyed this video, please like it. Subscribe to our channel because we will make more videos like this. Happy Investing!

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