Suzlon, Reliance Power to Vodafone Idea: These 5 multibagger penny stocks gave alpha return against Nifty 50 in 2023
- Multibagger stocks: Out of these five shares, Suzlon share price has surged 270% in 2023
Multibagger penny stocks: Indian stock indices have given stellar returns in the 2023. However, this could possible because of the participatory rally witnessed across segment. Among key benchmark indices, Nifty 50 index surged to the tune of 17.15 per cent in YTD. BSE Sensex shot up over 16 per cent in this time whereas Bank Nifty index gave over 10 per cent return in this time. In 2023, small-cap index has gained over 43 per cent while mid-cap index skyrocketed over 40 per cent in this time.
So, from a smart investor's perspective, an equity return below 10 per cent would be considered below par return whereas a return above 43 per cent this years would be considered beyond benchmark return or alpha return. As smart investors are not shy of investing in penny stocks as they believe investing in stocks is like investing in business.
Stock market return in YTD
On a smart investor scrutinize one's return at the end of the year, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Nifty 50 index is considred an ideal replica of the Indian stock market. So, one should compare one's equity return with Nifty 50 index. If the return is above 50-stock index return, then its an alpha return whereas in case the return is below Nifty 50 surge in the year, then there is need to look at one's portfolio and rebalance one portfolio."
Multibagger stocks in 2023
So, taking Nifty 50 as benchmart for the equity investors in 2023, here we list out top 5 penny stocks that gave alpha return against the 52-stock index:
1] Suzlon Energy: This share has been in uptrend since mid of May 2023. In May 2023, Suzlon share price bottomed out at around ₹8 per share levels and is currently around ₹37 apiece levels on NSE. This means, in last six months, this penny stock has delivered multibager return to its investors. However, in YTD time, this stock has risen from around ₹10 to ₹37 apiece levels, giving 270 per cent return to its shareholders in YTD.
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Comparing this 270 per cent return with Nifty 50 return in YTD, the penny stock has generated alpha return by a huge margin. In fact, this multibagger stock has generated alpha return against all indices mentioned above by a huge margin.
2] Reliance Power: This Anil Ambani-backed penny stock has been in uptrend after ushering in current financial year 2023-24. Reliance Power shares bottomed out at around ₹9.50 apiece levels at the end of March 2023. Reliance Power share price today is around ₹22.50 per share levels, which means the stock has delivered multibagger return in FY24.
This Anil Ambani-backed multibagger stock of FY24 has delivered 135 per cent return to its shareholders in current financial year. However, in YTD time, this penny stock has risen from around ₹4.70 to ₹22.50 per share levels, ascending to the tune of 50 per cent in 2023. So, this Anil Ambani backed penny stock has also generated alpha return against all major indices of Dalal Street.
3] Vodafone Idea: This penny stock is currently available at ₹13.55 apiece levels. This telecom stock has rise from around ₹5.80 to ₹13.55 apiece levels in current financial year, delivering 135 per cent return in FY24. So, this penny stock is one of the multibagger stocks that Indian stock market has delivered in FY24. However, in YTD time, Vodafone Idea shares have risen to the tune of 70 per cent, beating major indices of the Indian stock market by a huge margin.
4] Alok Industries: In first two months of 2023, Alok Industreis shares remain under sell off heat. But, this penny stock bottomed out at around ₹10.60 per share levels at the end of February 2023. Alok Industries share price today is ₹21.35 apiece on NSE, which means the penny stock has doubled invetors money after bottoming out in February 2023. However, in YTD time, Alok Industries shares have risen to the tune of 35 per cent, generating alpha return against key benchmark indices — Nifty 50, Sensex and Bank Nifty — in 2023.
5] Morepen Lab: This penny stock is also among those Indian stocks that has given stellar return in FY24. At the end of March 2023, Morepen Lab share price bottomed out at ₹24.35 per share levels whereas it is available today at ₹49.10 per share levels. This means, Morepen Lab shares are one of the multibagger stocks in current financial year. However, in YTD time, this penny stock has risen from near ₹36 to ₹49 per share levels, delivering to the tune of 35 per cent in 2023, generating alpha return against all key benchmark indices of Indian stock market.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision. Re
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