Diwali to Diwali: Top Performing Stocks of 2024 that Rallied up to 62,745%

It's time to look back on the Indian stock market's shining stars over the past year.

From Diwali 2023 to Diwali 2024, certain stocks have lit up the market with impressive gains.

In today's article, we take a look at the best performing stocks from last Diwali to this Diwali.

We've considered stock prices of these companies as on last Diwali day, i.e. 13 November 2023 and the fastest growing ones since then.

#1 Sri Adhikari Brothers (62,745%)

First on the list of top performing penny stocks since last Diwali is a media company.

Sri Adhikari Brothers Television Network operates in the field of content production and syndication of content to various broadcasters, aggregators and satellite networks.

Remember Sab TV? The channel on which the popular show Taarak Mehta is aired? Well, this company is the brains behind the creation of the light humour centric television brand.

Trading at less than Rs 2 in November last year, the company has delivered an astonishing 62,745% return since last Diwali and currently trades at a little over Rs 1,200.

Rs 1 lakh invested a year ago in this stock would have turned to Rs 6.2 crores in a year!

And you want to know the best part? The company has achieved this success in the year gone by with almost zero sales in the past 5 years!

In late 2018, PSU Central Bank of India filed an application for initiation of corporate insolvency resolution process (CIRP) of Sri Adhikari Brothers.

So one possible reason behind the sharp rally could be the insolvency process finally coming to an end.

When a company enters insolvency, its stock price sometimes rallies due to speculative optimism around restructuring. Investors might believe debt restructuring or asset sales could save the company.

Mainly, the share capital reduces which may or may not increase perceived value per share, depending on market interpretation.

There's also hope for a turnaround in financials. After reporting back to back quarterly losses for as long as you could remember, the company has finally reported a profit in the June 2024 quarter.

It remains to be seen how the company performs in the September 2024 quarter.

#2 Eraaya Lifespaces (4,401%)

Next on this list is Eraaya Lifespaces.

Erstwhile Just Ride Enterprises, the company is in the business of digital marketing services.

JREL (previously known as Tobu Enterprises Private Ltd) is a manufacturer and seller ofengineering goods, automobile parts, indigenously made bicycles, and deals in securities.

The company is a manufacturer and seller of engineering goods, automobile parts, indigenously made bicycles, and deals in securities.

It was acquired by Ms Sukriti Garg and M/s. Just Right Life in pursuance of the share purchase agreement.

Trading at less than Rs 50 in November last year, the company has delivered 4,401% returns since last Diwali and currently trades at a little over Rs 2,000.

This rally is set to intensify as the company's board recently announced a 10:1 stock split.

The company also allocated 419,275 FCCBs worth US$ 4 million to enhance liquidity and attract more investors.

The steep rally seen in the past 1 year could be due to Eraaya's improving financials at some levels. In FY24, the company reported bumper sales compared to no sales for more than a decade.

While net profit jumped from Rs 10 lakh to Rs 34 lakhs.

During the year, the company achieved a peak marketcap of Rs 6,000 crore and even traded at a PE multiple of 3,500x.

Investors should be cautious though as the company has headed down the same path, with no revenue reported in the most recent Q2.

Promoters of the company are family members of Vikas Garg, who is the promoter of Vikas Eco. Promoter holding has remained quite volatile in the stock with the current holding at 36% compared to 44% 3 months ago.

#3 Diamond Power Infra (1,760%)

Next on the list is Diamond Power Infra.

The company is engaged in the business of manufacturing of transmission & distribution of power products & services in India.

The company's products include conductors, cables, transformers (power and distribution) and transmission towers and EPC services.

In 2010-11, Diamond Power underwent an expansion and ventured towards an integrated product portfolio. The expansion, however, did not go as planned.

Land acquisitions faltered and various other factors came into play, delaying the expansion. The adverse economic scenario in the power sector, coupled with delay in the expansion project led to serious financial dent in the company.

Subsequently, the company was put under the corporate Insolvency Resolution Process (CIRP).

Trading at less than Rs 100 per share in November last year, the stock has shot up to Rs 1,559 and delivered 1,760% returns in a year.

Following the resolution process, the company's operations were on a halt and the company did not generate any revenue between 2018-2023.

In FY24, the company started operations and reported total sales of Rs 343 crore which gave them a profit of Rs 17 crore for the year.

The turnaround could not have been possible without the new management's infusion of Rs 50 crore.

Going by the latest quarterly results, the company is on track to achieving consistent growing sales and has already reported profits in the 3 most recent quarters.

Promoter holding in the company is very high at 91%, so low liquidity could be another reason why the stock is finding so many takers.

#4 Dolphin Offshore (620%)

Next on the list is Dolphin Offshore.

The company is the flagship company of the Dolphin group and is in the business of providing a complete range of offshore support services to the oil and gas industry.

The services include diving and underwater engineering services, marine operations and management (vessel management), fabrication and installation, ship repairs, geo-technical services, EPC activities, etc.

In the past one year, the company's stock price has rallied from Rs 69 to Rs 500 at present. This translates into 6x returns.

As can be seen from the chart above, the stock price peaked at Rs 900 at one point.

In FY23, the company was unable to generate any revenue. Then in September 2023, it raised funds via a qualified institutional placement (QIP).

The company, part of Deep Industries, has never looked back since then. The company is in the process of launching its own in-house training program for divers and underwater technicians with international certification.

The company's quarterly earnings also suggest a possible turnaround is right around the corner. It has reported a profit for six consecutive quarters, following a series of repeat losses.

Interestingly, when the company's stock price peaked in July this year, the company's marketcap crossed that of Deep Industries. This shows how companies coming out of NCLT may become an interesting group of stocks to filter and study. Deep Industries had acquired Dolphin from the NCLT.

Here's something even interesting... When the management of Deep Industries was asked about the rationale behind this absurdity in the stock price of Dolphin, their only justification was low float.

#5 Electrotherm (545%)

Last on this list is Electrotherm.

The company is in the business of engineering & technologies, special steel and electric vehicles (EVs).

The company holds a global 3.5 lacs KW market share in the metal melting industry. According to its annual report, it also commands a 65%+ market share in induction melting equipment used by the steelmaking industry in India.

Trading at Rs 142 in November last year, the stock price has shot up to Rs 11,787, churning out 545% returns for shareholders.

The steep rally seen in the past 1 year could be attributed to various reasons.

First, the company's special steel division has seen a steep growth. Producing TMT bars & ductile iron pipes, the company grew this division by 44% in FY24 supported by improved ductile iron pipe market and operations restructuring.

Another keyword that's worked for the company is electric vehicles. Its electric vehicle division manufactures EV in 2 & 3 wheelers segment under the brand name YoBykes.

During the early years, somewhere around 2011-2012, the company defaulted on loan payments of over Rs 2,500 crore, taken from Central Bank of India, Rare Asset Reconstruction Limited, Bank of India, Oriental Bank of Commerce, Allahabad Bank, and Punjab National Bank.

Skip forward to present and the company has paid the entire settlement amount under one time settlement arrangement. The OTS with Central bank is still ongoing but the total borrowings have declined.

Hoping for a recovery soon, the company is currently focusing more on the high-speed models of the 2W segment in the EV business.

Top Performing Stocks Since Last Diwali

Apart from the above 5, here are the stocks that have rallied the most since last Diwali.

Company	Current Price (Rs)	Change (%)
Tarapur Transformers Ltd.	29.6	521%
Websol Energy System Ltd.	1,244.6	514%
LCC Infotech Ltd.	10.6	501%
V2 Retail Ltd.	1,226.3	474%
21st Century Management Services Ltd.	111.2	460%
Power & Instrumentation (Gujarat) Ltd.	220.5	455%
TV Vision Ltd.	17.6	388%
PC Jeweller Ltd.	143.4	387%
Wonder Electricals Ltd.	1,475.1	382%
VL E-Governance & IT Solutions Ltd.	148.7	373%
Transformers & Rectifiers (India) Ltd.	849.5	349%
Indo Thai Securities Ltd.	1,001.0	347%
Kavveri Telecom Products Ltd.	53.9	333%
GE Vernova T&D India Ltd.	1,670.8	331%
RS Software (India) Ltd.	252.0	328%
Supreme Infrastructure India Ltd.	121.8	316%
Sky Gold Ltd.	3,434.4	313%
Refex Industries Ltd.	459.1	311%
Shakti Pumps (India) Ltd.	4,261.9	296%
Hubtown Ltd.	244.0	281%

Source: Equitymaster

In Conclusion

For all the 5 stocks listed above, low free float has played a major role in the steep rally seen in the year gone by.

As these stocks have low liquidity, their share price moves up quickly. And if that stock grabs headlines, the demand supply mismatch literally pushes up its price.

These companies, coming out of NCLT, have very low public float and market participants get tempted to buy them at ridiculous levels.

Mind you, when the tide turns, the companies with low float are the worst hit as investors are unable to exit easily.

A few NCLT acquired companies during the Covid were Ruchi Soya by the Patanjali group & Alok Industries by the Reliance group. Initially, both these stocks took off like there's no tomorrow, rallying non-stop for months.

However, the performance of these stocks took a U-turn after the offer for sale to reduce shareholding of promoters below 75% mandate.

In conclusion, be wary of low-free float stocks as not all would be investment worthy candidates.

As promoters hold a major chunk in these shares, they exercise control over the company and sometimes even manipulate stock prices.

Low-float shares fall at the same pace that they have risen.

Historically, large free-float size companies are considered more stable while the ones with smaller public exposure are volatile.

Shares with a higher float are usually the ones with better governance since the promoter has lesser influence and shareholders have more power to exercise their rights.

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...