Stock prices of Gujarat’s corporates have soared in recent times, ensuring strong returns for investors as well as a positive future outlook that overall secures the investment scenario in the state.
Since the beginning of the fiscal year 2023-24, state’s corporates’ stock prices have gone up by up to 87%. Homegrown giants like Adani Group, Torrent Group, Zydus Lifesciences and Astral Limited, among others, have given higher returns than sensex in the fiscal year so far.
Analysts attribute this to good financial performance and bright future prospects of leading companies.
According to stockbrokers, overall the Indian equity markets have seen a bullish trend in the current fiscal year, which had its effect on these stocks as well. Nifty delivered an impressive return of around 13% whereas BSE sensex has shown an increase of around 12% since April 1.
Mid-cap, small-cap stocks also saw a sharp rally since April 1.
Gujarat’s corporates have clearly outperformed the benchmark index. Pharma stocks have been underperforming post-Covid but stocks like Zydus Lifesciences and Torrent Pharma have witnessed value-based buying in the last few months.
Power and building material companies witnessed strongest recovery during the fiscal year, as economic activity has picked up in the last few months, analysts said.
Even Adani Group stocks saw sharp recovery post the Hindenburg report. Some of the big funds like USbased GQG have picked up huge stakes in Adani Group companies and retail investors have also added stocks during the fall which has helped in recovery.
A research analyst said, “Most Gujarat-based companies have given extraordinary returns in merely five months. Strong fundamentals and future prospects have helped these stocks to perform better than broad markets.”
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