Top 5 Biggest Gainers of 2023. Will Their Dream Run Continue?

It has been a fairly rewarding 2023 for investors as benchmark indices scaled to record highs.

Domestic equity benchmarks Nifty 50 and BSE Sensex rose 20% in 2023, their second-best year since 2017, and were among the top-performing stock indexes globally. The Nifty 50 marked the eighth consecutive year of positive returns.

India become a stock market superpower with market capitalisation surpassing the US$4 trillion (tn) mark, securing fifth position after the US, China, Japan, and Hong Kong.

The bull run was supported by sustained domestic mutual fund inflows, foreign capital inflows, better-than-expected economic growth, and robust corporate earnings.

D-Street investors added a significant Rs 81.9 tn to their wealth in 2023, powered by the stellar rally.

Not only that, midcap and smallcap stocks also added to the bullish momentum through the year.

Here's a list of stocks that gained the most in 2023.

#1 Tata Motors

With a 101% rise in the share price, Tata Motors was the top gainer of 2023.

This was as India's leading EV player has been the shining star among all automobile stocks.

Tata Motors is the dominant force in the Indian electric vehicle (EV) market. This dominance will likely continue for at least a few more years, perhaps longer. And every potential car buyer in India is acutely aware of it.

The robust momentum comes on the back of a strong JLR outlook, improving margins, and the company's increased focus on SUVs as disposable incomes rise.

The company became profitable again in FY23 after posting what seemed like never-ending losses.

Furthermore, customers are shifting to renewable forms of transportation, and in the 4-wheeler segment, the Nexon-maker is the biggest beneficiary.

Additionally, the company expansion plan of its Sanand plant in Gujarat fuelled the momentum. This plant is Tata Motors' largest manufacturing facility in India. It currently produces a wide range of vehicles, which includes the Tiago, Nexon, and Altroz.

The expansion of the Sanand plant will see the addition of a new lithium-ion battery production facility, expected to be operational by as early as 2025.

Going forward, the company has a clear plan to transition to a mostly EV company by 2030 and has backed the plan with billions in funding, leadership support, and technology partnerships.

To know more about the company, check out the Tata Motors fact sheet and quarterly results.

#2 NTPC

Second on the list stands NTPC, with an 87% gain.

NTPC is a key player in the power sector, producing and distributing large quantities of electricity to various utility providers.

The power giant is committed to the development of renewable energy in the country and its potential to decarbonise the energy sector.

The rally in the stock can be attributed to its grand green-hydrogen roadmap. In 2023, the company started a trial run of a hydrogen bus in Leh.

Towards achieving carbon-neutral Ladakh, NTPC is setting up a hydrogen fuelling station, and solar plant, providing five fuel cell buses for operation on intracity routes of Leh.

The first hydrogen bus reached Leh on 17 August 2023 as part of a three-month-long process of field trials, roadworthiness tests and other statutory procedures. It was India's first-ever deployment of hydrogen buses on public roads.

This momentum was further fuelled by its green hydrogen partnership. NTPC and Ohmium in June 2023 partnered to manufacture proton exchange membrane (PEM) electrolysers to produce green hydrogen in India.

Going forward, the company has set a target of producing 150,000 tonnes of green hydrogen every year by 2030.

NTPC is committed to achieving 60 GW of Renewable Energy capacity by 2032 and is a major player in green hydrogen technology and energy storage domain.

For more details about the company, see the NTPC company fact sheet and quarterly results.

#3 L&T

Third on the list stands L&T, with a 69% gain.

The company is the most respected multinational conglomerate that operates in over 50 countries with unmatched capabilities in all its businesses, including construction, engineering, technology, and manufacturing.

L&T, over the years, forayed into multiple business verticals, including infrastructure, power, hydrocarbon, metal and minerals, defence, aerospace, information technology (IT), products, systems and equipment, finance, and real estate.

This rally can be attributed to its buyback plan of raising its floor price for its Rs 100 billion (bn) mega-buyback program by almost 7%, setting it at Rs 3,200 per share, compared to the previous Rs 3,000 per share and incorporation of a new wholly-owned subsidiary, L&T Semiconductor Technologies.

Further, the company announced its ambitious green hydrogen plan. Under it, the company plans to create renewable energy infrastructure for the world's largest green hydrogen plant in Saudi Arabia.

In this venture, L&T will undertake the engineering, procurement, and construction of various components, including a 2.2 GWAC PV solar plant, a 1.65 GW wind generation balance of plant, and a 400 MWh battery energy storage system at Oxagon in NEOM.

Going forward, L&T plans to expand its focus on green hydrogen projects in global markets, aiming to strengthen its presence in the sustainable energy sector.

The company plans to invest US$ 4 billion (bn) (Rs 320 bn) with its joint venture partners in the next 3-5 years in its green hydrogen business.

For more details about the company, check out L&T's fact sheet and quarterly results.

#4 UltraTech Cement

Fourth on the list stands UltraTech Cement, with a 50.9% gain.

UltraTech Cement is the largest manufacturer of grey cement, ready-mix concrete (RMC) and one of the largest manufacturers of white cement in India.

UltraTech Cement hit its 52-week high of Rs 7,792.1 on

This rally can be attributed to the company's plan to buy the cement business of Kesoram Industries to boost its capacity ambitions in a highly competitive sector.

Additionally, it can be attributed to the company's plan to deploy 500 electric trucks and add 1000 CNG and LNG vehicles in the 40-tonne category in its operations by June 2025 as part of the Government's eFAST initiative.

Further, the company recently partnered with Coolbrook, a Finland-based transformational technology company, to adopt its RotoDynamic Heater technology in one of UltraTech's cement manufacturing units.

Going forward, the company plans to increase its total green energy share threefold from current 22% to 60% by FY26. The company has been constantly scaling up the green energy mix in total power requirement over the years.

UltraTech targets to meet the entire electricity requirement through renewable sources by 2050, as part of its RE100 commitment.

For more details about the company, check out the Ultratech Cement company fact sheet and quarterly results.

#5 Power Grid Corporation

Last on the list stands Power Grid Corporation, with a 47% gain.

From humble beginnings in 1989, it has grown to become the largest power transmission company in India.

By carrying electricity through its nationwide grid network, the company acts as a connecting factor between power-generating companies and power-trading companies.

The company also ventured into EV charging infrastructure and is setting up charging stations across the country.

This can be attributed to a company acquiring two special purpose vehicles (SPV) to implement power transmission projects, ataman Transmission and Koppal II Gadag II Transmission from PFC Consulting. This was further fuelled by the company winning the Khavda RE park project.

Going forward, the company plans significant investments in expanding the transmission network with a focus on interstate and intrastate projects. This aims to connect renewable energy sources, improve grid stability, and facilitate electricity trading.

For more details about the company, check out the Power Grid company fact sheet and quarterly results.

Conclusion

Careful consideration is crucial when contemplating investments in top gainers. Despite the allure of recent surges in stock prices, a measured approach is necessary.

High-growth stocks often come with increased volatility, demanding a thorough evaluation of one's risk tolerance.

Beyond short-term price movements, a focus on fundamental analysis is crucial, examining factors like a company's financial health and growth prospects.

Additionally, awareness of broader market conditions and trends is essential, as short-term gains may be influenced by temporary market dynamics.

It's important to remember that past performance doesn't guarantee future results. Therefore, one should align investment with individual financial goals.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...