Multibagger Stocks 2023: 5 Companies that Rallied up to 200%

Indian share markets are making headlines these days as they touch record highs. The BSE Sensex and NSE Nifty registered a new all-time high earlier this week.

With no signs of stopping the bulls, markets are expected to continue the good run going forward. At least that's what most experts are predicting.

In today's article, we'll take a look at five stocks that have rallied the most in 2023 so far. These companies have rallied up to 200% .

We've selected stocks with a minimum marketcap threshold of Rs 20 billion (bn). That way, we'll churn out the low-liquid stocks that are often driven by liquidity.

Let's take a look...

#1 Aurionpro Solutions

First on the list is Aurionpro Solutions. It offers technology solutions that help enterprises accelerate digital innovation securely and efficiently.

It offers a single platform for guiding businesses to adapt to a dynamic digital transformation across banking, transportation, logistics, and government sectors.

In 2023 so far (between 1 January 2023 and 23 June 2023), the stock price has already rallied around 191%.

During the financial year 2023, the company's total sales stood at Rs 6,636.6 million (m). It registered a growth of 30% on a YoY basis on the back of increasing market share.

It reported a net profit of Rs 1,018.9 m. Revamped strategy and disciplined execution of the same boosted its profit-earning capacity.

In the year under review, the company not only achieved its financial targets but also met its long-term objective. Its long-term objective included accelerating R&D to create next-generation platforms.

Going forward the company intends to increase its market share driven by new product launches. It had already launched a brand new corporate digital banking product, Auro-Digi, that's already won the first client. It also launched an SME platform, Aurobees during the year, that's seeing significant traction.

The company also went live with the payment offerings: B2C live in India, and B2B in Singapore. It launched a hybrid cloud service offering that adds significant value to its existing platform offerings.

Moreover, Aurionpro added a manufacturing capacity for the hardware divisions to allow them to scale more aggressively in the current year. In a nutshell, the company had the largest number of additions in a single year.

Little wonder the company started the financial year with a strong order book of about Rs 8,200 m. The management expects to maintain the growth trajectory going forward.

In FY24, they anticipate a growth rate of 30% to 35%.

#2 Nucleus Software Exports

Next on the list of multibagger stocks of 2023 is Nucleus Software Exports. It's an Indian IT company in the banking and financial services sector. It offers IT and consultancy services serving a variety of sectors of the banking industry.

The company has its headquarters in Noida and operates in more than 50 countries.

In 2023 so far (between 1 January 2023 and 23 June 2023), the stock has rallied around 162%.

During the financial year 2023, the company's total revenues grew by 26% to Rs 6,685.2 m. The company continued to update a few more AMC contract revisions in the said financial year, which is clearly reflected in its revenue growth.

It incurred low expenses due to a lower attrition rate and resultantly, the company turned profitable this year. During the year under consideration, it earned a total profit of Rs 80.1 m, which is not significantly higher but much better compared to a loss of Rs 107.9 m reported in the financial year 2022.

The company's net profit margin also increased as it worked on some aspects towards pricing that led to it.

While all IT companies are facing concerns of attrition, Nucleus' attrition rate is well below 10%, and the quarterly attrition is one of the lowest in the last 2 years.

The company intends to further solidify its position in India. At the same time, it plans to spread its presence in high-growing markets in Southeast Asia, and Australia among other places.

In the coming few quarters, the company will explore new markets and increase its spending in the said markets.

The company also aims to enhance its engineering segment and project management segment so that it can complete more implementations in shorter times going forward.

#3 Saksoft

The third multibagger stock of 2023 is Saksoft, that provides technology services to companies in the industry verticals of fintech, logistics and transportation, health tech, and utilities.

It helps its clients with application engineering, quality assurance and testing, data analytics, cloud, infrastructure, and cyber security services.

In 2023 so far (between 1 January 2023 and 23 June 2023), the stock has already rallied around 152%.

Saksoft gave a notable financial performance in the financial year 2023. Its revenue grew substantially by 37% to Rs 6,750.3 m on the back of effective strategy implementation. According to the management, its inch-wide and mile-deep strategy drove revenue growth.

The company witnessed a significant increase in headcount of about 350 plus resources with no decrease in utilisation levels signifying greater demand for the company's services.

Its net profit came in at Rs 819.8 m. The growth in revenue from offshore business helped in improving its profit margins.

During the year, it successfully acquired a Chennai-based entity Terafast with expertise in cloud engineering, networking solutions, and DevOps automation. The services rendered by Terafast will strengthen Saksoft's focus on digital transformation.

The company will continue to focus on creating market missions for itself in an increasingly competitive industry.

The company is currently working towards achieving the goal of US$ 500 m (about Rs 40,991.8 m) in revenue by 2030.

#4 WPIL

Next is WPIL, a holding company, which is engaged in providing pumps, pump spares, and accessories. The company is engaged in designing, developing, manufacturing, erecting, commissioning and servicing pumps and pumping systems.

In 2023 so far (between 1 January 2023 and 23 June 2023), the stock has already rallied around 140%.

For the financial year 2023, the company delivered strong revenue growth driven by international business and turnkey project business and reported consolidated revenues of Rs 18.1 billion (bn), an increase of 52% on a YoY basis.

The company's profit jumped 86% to Rs 2,196.7 m. Volume growth in sales supported profit growth.

On the operational front, stabilising commodity prices supported strong margin performance across businesses.

The company's international business was driven by strong performance, primarily in the infrastructural development in the Middle East, and North Africa region where it supplied from Europe.

Going forward the company will continue to focus on the Jal Jeevan Mission and AMRUT 2 by the government which augurs well for the medium term with new contract wins. The outlook on the nuclear business in Europe is also encouraging for the Rutschi business.

The management will make efforts to grow its earnings before interest, tax, depreciation and amortisation (EBITDA) in a range roughly between 15-20% and work on growth from that level.

#5 Inox Wind Energy

Last on the list of top gainers of 2023 is Inox Green Energy, a subsidiary of Inox Wind.

It's engaged in providing long-term operation and maintenance (O&M) services for wind farm projects, specifically for wind turbine generators (WTGs) and common infrastructure facilities on wind farms, which support the evacuation of power from such WTGs.

In 2023 so far (between 1 January 2023 and 23 June 2023), the stock has already rallied around 116%.

The company's financial performance was not very good in the financial year 2023. Its revenues suffered in 2023 and resultantly its losses also widened in 2023.

Inox Wind Energy was under investors' focus due to two prime reasons:

1) Significant fund infusion by promoters

2) A merger with the parent company

In December 2022, promoters of the company sold their own stake in Gujarat Fluoro and infused Rs 6,230 m equity in Inox Wind, the parent company of Inox Wind Energy.

So, why were the promoters selling a stake in a fast-growing, well-performing business in a sunrise industry (speciality chemicals for electric vehicles) and infusing equity money in a loss-making company?

This raised great investor interest in Inox Wind Energy as markets believe that when promoters are investing in a company, either something big is about to happen or shares are undervalued.

This was supported by a government policy announcement in January 2023. The government in January 2023, came out with a policy document which talked about changes in the way auctions will be conducted for wind power plants.

This means there will be no race to the bottom, and the tariffs discovered in such auctions will be saner at the same time being competitive enough that the electricity consumers don't have to pay too high a price.

One promising sign has been the recently concluded wind energy tender - SECI Tranche XIII, where reasonable tariffs have been discovered. At these tariffs, wind power project developers should be able to install wind projects and also make a reasonable profit.

So, there are enough growth opportunities for the wind energy company.

Inox Wind Energy gained significant investor attention during June 2023 again when it announced its merger with the parent company.

Inox Wind on 12 June 2023 announced that its board has approved the merger of Inox Wind Energy into the company. The merger is subject to various regulatory approvals and compliances. The appointed date for the amalgamation is set as 1 July 2023.

Snapshot of Multibagger Stocks on Screener

Since multibagger stocks interest you, take a look at the image below which shows the multibagger stocks in India -

Investment Takeaway

Investors should keep in mind that a company's share price fluctuates according to market sentiment which may not always be in tandem with the fundamentals of the company.

That is why, before investing in a multibagger stock, carefully analyse the company's fundamentals and make sure that it does not turn out to be a wealth destroyer.

Happy Investing!

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...