Back2 multibagger stocks locked in upper circuit after gaining over 500% YTD so far
After the Reserve Bank of India (RBI) increased the key policy rate by 50 basis points on August 5, the domestic indexes closed the day in the green.
PremiumAfter the Reserve Bank of India (RBI) increased the key policy rate by 50 basis points on August 5, the domestic indexes closed the day in the green. The Nifty was up 15.5 points or 0.09 per cent at 17,397.5 at closure, while the Sensex was up 89.13 points or 0.15 per cent at 58,387.93. The markets saw a bullish week ending for the third week in a row, with gains of around 1.4% apiece for the Nifty and Sensex. However, analysts believe that concerns including geopolitical worries, turbulence in the global economic sector, and the dollar index, will make a significant impact on the market. Here are two stocks that are locked in the upper circuit and have produced a multibagger return of over 500 per cent YTD so far in 2022, despite the market conditions where NIFTY and Sensex are down 1.29 per cent and 1.34 per cent, respectively.
Alliance Integrated Metaliks Ltd
The stock locked in an upper circuit limit of ₹26.00 on Friday, with an upside gap of 9.94% at closure, after opening at ₹23.20 per share. Compared to the 20-day average volume of 122,879 shares, there were 85,744 shares traded in total, with a traded value of ₹22.29 lacs. The stock price has soared from ₹2.04 as of October 12, 2021 to ₹26.00 as of August 5, 3:30 IST during the past year, resulting in a multibagger return of 1,174.51 per cent. The stock price has gone up from ₹2.84 on January 3, 2022, to the current price level on a year-to-date basis, representing a multibagger return of 815.49 per cent so far in 2022. The stock price climbed from ₹6.31 on February 8, 2022, to the level it is at now, representing a multibagger return of 312.04 per cent.
On the BSE the stock had touched a 52-week-high of ₹37.80 on 25/04/2022 and a 52-week-low of ₹2.04 on 12/10/2021 which indicates that at the current price of ₹26.00 the stock is trading 31.21% below the 52-week-high and 1174% above the 52-week-low. With a market capitalization of Rs. 301 Cr., Alliance Integrated Metaliks Ltd. is a small-cap company that manufactures power plant BTG, BOP support structures, welded/riveted steel girders, sugar plant components, turnkey fabrication solutions for sugar, cement, and petrochemical plants, composite deck columns & beam solutions in steel or composite construction, portals, and crane girders for heavy PEBs applications. The company has a promoter shareholding of 71.35 per cent for the quarter ending June 2022, which has been stable since September 2019. FII holdings reached 1.55 per cent, the highest to date, while public shareholdings reached 27.10 per cent, the lowest since September 2019.
Baroda Rayon Corporation Ltd
Since the last 44 sessions, the Baroda Rayon Corporation Ltd. shares have been getting closer to the upper circuit limit. The stock opened at Rs. 35.30 per share on Friday and reached a new high at the same level on Friday, nearing its upper circuit limit of Rs. 37.05 with an upside gap of 4.90 per cent at the close. Compared to the 20-day average trade volume of 1,845 shares, the total number of shares that were traded on Friday was 53. The company's market capitalization on Friday was ₹80 Cr. The stock price has soared from ₹4.64 on June 1, 2022, to ₹35.30 as of now, representing a multibagger return of 660.78 per cent so far in 2022.
The stock has maintained its multibagger gain of 660.78 per cent during the past six months, and it has produced a multibagger return of 163.63 per cent over the past month. On the BSE the stock had made a 52-week-high of ₹35.30 on 05/08/2022 and a 52-week-low of ₹4.42 on 01/06/2022 which means that at the current price level the stock is trading 698.64% above the 52-week-low. For the quarter that ended in June, the company's promoter shareholding was 47.54 per cent, which has not changed since September 2019. Domestic institutional investors (DII) reached 1.48 per cent for the quarter, which was the lowest since September 2019, and the public's shareholding was 50.97 per cent, which has not changed since September 2019.
Commenting on the upcoming performance of Nifty, Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd said “Though the market was volatile, it moved in a small band as investors traded with caution after the recent upsurge. However, the positive thing was benchmarks managed to rebound in late trades to end in the green. With the overhang of monetary policy now behind us, the geo-political tension between China & Taiwan will be in focus, as any flare up in the region may lead to panic situations across the globe. Technically, on weekly charts, the index has formed a bullish candle. Further, daily and intraday charts are indicating the continuation of a non-directional activity in the near future. The short texture of the market is still on the bullish side but a fresh uptrend rally is possible only after the 17500 breakout level. Above the same, the index could rally up to 17600-17750. On the flip side, below 17500, the index would retest the level of 17250-17200 and if the downside continues, it may correct up to 17050-17000."
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