Hello. In the last 3 months, many macroeconomic events have been seen in the world.
And we can say that it has been a tough phase for the investors as well as the world market has come down quite a bit from its peak.
The S&P 500 index is down by 15% year-to-date and the Dow Jones is down by 11% in the same period.
A similar decline has been seen in the Indian markets as well.
Nifty 50 Index YTD is down by 7.71% as of 20 May 2022.
But this is the time to test good stocks and companies.
There is a famous quote "Buy when there's blood on the streets, even if the blood is yours."
Any stock can give you good returns in good times but only those that perform in time tend to have strong business and fundamentals which can be the long-haul horses.
There is a famous quote in English- Fire is the Test of Gold.
This means, that gold can be tested by fire only.
Like real gold stays upright in a fire test in the same way, good stocks which remain upright in a falling market are considered investing gold.
So today we will tell you about such stocks that have given the highest returns in the last 3 months.
In this video, we will cover all about the business of those stocks and also their key strengths and potential risks or weaknesses.
A holistic view of companies to help you in miles.
In addition, in the end, we will look at some key financial and technical metrics for all companies in one table.
While selecting the stocks we are in, it has been kept in mind that these companies are fundamentally strong.
So in this list, we will tell you about the stocks whose:
To calculate the returns of the stocks in the list, we will consider the last 3 months' returns from 17th May 2022.
In this list, we will tell you the top 5 stocks in ascending order, which stock has given the highest return in the last 3 months, we will tell you at the end.
So let's start today's list.
The first company is Schaeffler India Limited.
It is involved in the manufacturing and machine-building of high-precision rollers, ball bearings, engine systems, transmission components, automotive components, and other industrial components.
This is a B2B company.
That is, they do their own products, what other companies have to do as raw material, they make their final products good for the customers.
The stock of the company has given a 23.3% return in the last 3 months.
Its biggest strength is its strong product portfolio and its industry expertise, which has resulted in consistently winning deals in the industrial manufacturing and auto ancillary space.
Due to this, Schaeffler India's sales have been the fastest in the industry in the last year.
The company's major weakness is the high competition in the auto ancillary space and its high dependence on the auto industry.
As of 2020, 80% of Schaeffler India's revenues came from chunk auto components.
This industry is quite cyclical i.e. when the economy does well, the industry also does well, but when there is a recession in the economy, the industry suffers.
As you can see on your screen, we have shown some key financial and technical ratios of the company.
We have included a valuation ratio in the form of price-to-earnings ie P/E ratio.
Return on Equity i.e. ROE is included as the Profitability Ratio.
Also, we have also included 5 years of sales growth in all the companies so that you get the idea as to how fast the business of these companies is happening.
We have shown 3 Months and 1 Year returns of all the companies so our audience can differentiate the short-term and short to medium-term stock performance of the companies.
And finally, we have also included the prices of 2 technical indicators so that you can see the stocks from a technical perspective as well.
We have used 2 indicators- 200 days simple moving average i.e. 200 days SMA and RSI (14).
If a company's stock price is trading above the 200 DMA, the stock can be considered bullish.
And if the price is trading down from 200 DMA then the stock can be said to be bearish.
In terms of RSI, RSI values ​​above 30 are generally considered oversold, and thus a trend reversal ie a downtrend can lead to an uptrend.
Similarly, an RSI value above 70 is considered overbought, and a trend reversal is likely.
Another company is Solar Industries India Limited.
The company manufactures bulk explosives, packaged explosives, and initiative systems that are used in the mining, infrastructure, and construction industries.
This is also a B2B company.
The company also aims to manufacture missile and rocket propellants, warheads, and warhead explosives for the defense sector.
But 73% of the company's revenue comes from industrial explosives.
The stock of the company has given a 24.3% return in the last 3 months.
The company's biggest strength is its strong market position and long presence in the explosives industry.
Due to this, the order book of the company is very strong.
The order book of the company as of Q4 FY22 stood at Rs 2,982 crore.
Its total revenue in FY22 stood at Rs 3,948 crore, which means the company's total order book is close to its annual sales numbers, which is a healthy sign.
The company's major weakness is its strong regulatory risk level.
Its operating segments such as Industrial Explosives and Defense are highly regulated and any adverse regulatory changes can cause significant damage to the business.
Now you can see some key financial and technical ratios of the released company on the screen.
The third company on our list is CRISIL Limited.
CRISIL is India's leading credit rating agency.
It is owned by the US credit rating agency S&P 500.
A credit rating agency assesses the creditworthiness of a company.
It analyzes the company's financials by assessing its debt repayment capacity on different parameters.
The stock of the company has given a 26.7% return in the last 3 months.
As India's leading credit rating agency and its association with the S&P 500, the company has a strong position in the largest market.
Because of this, the company's return on equity is among the highest in the industry by a huge margin.
The company's major weakness is its high reliance on rating reputation.
The ratings industry's reputation has been dented by the ILFS NBFC crisis of 2018, which has dented the reputation of industry players such as CRISIL.
Now you can see some key financial and technical ratios of the released company on the screen.
Adani Total Gas is the fourth company on our list.
It is one of India's leading city gas distributors and supplies natural gas to domestic, commercial, industrial, and vehicle users.
It is a joint venture between Adani Group and French energy giant Total.
The stock of the company has given a 49.3% return in the last 3 months.
The company's biggest strength is its strong gas distribution network covering 38 geographies in
Gujarat, Haryana, Karnataka, Tamil Nadu, Rajasthan, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, West Bengal, Bihar, Odisha, and Goa.
The association of the company with Total Energy helps the company to operate in a big way.
The company's major weakness is electric vehicles.
At present, the demand for natural gas is dependent on its potential to substitute petrol and diesel.
But the electrification of the auto sector and the rise of alternative fuels such as ethanol and liquid hydrogen could threaten the industry and Adani Total Gas in the future.
Furthermore, the valuation of the company is very high as compared to the rest of the industry.
Now you can see some key financial and technical ratios of the released company on the screen.
The company with the highest return on our list is Adani Wilmar.
Adani Wilmar is one of the leading FMCG companies in India. It owns and operates Fortune, a market-leading brand in the Cooking Oil segment.
The stock of the company has given a 60.75% return in the last 3 months.
It was listed on 8 February 2022 from where the company's share price is up 126%.
The company's biggest strength is its market leader status in the edible oil segment.
Furthermore, the company has a strong brand and distribution reach that the company can use to expand into other food segments.
The raw material procurement of the entire business of the company is dependent on the agriculture segment.
It is prone to agricultural hazards such as erratic weather, plant diseases, natural calamities, etc.
Also, the company does not have any long-term supply contracts due to which, the full effect of commodity price volatility and inflation has to be faced at the time of procurement.
Now you can see some key financial and technical ratios of the released company on the screen.
In the case of Adani Wilmar, we have taken jug 50 DMA of 200 DMA because the company is recently listed and its price data for 200 days is not available.
So these were the 5 companies which have given the highest returns in the last 3 months.
We remind you that these videos are for educational purposes only, and do not recommend any kind of buy/sell.
We will tell you that Groww has a channel on Telegram where you can know about the latest market updates, interesting blogs, and news.
We have given the Telegram channel link in the description of the video, so you must also join.
Don't forget to subscribe to the Groww channel for the latest updates about the market. Bye