It is important to judge a stock or a portfolio not just by the absolute returns but also by the degree to which it gives you returns higher than the average returns in the market or the sector. Therefore, in order to make better stock market investment decisions, you must compare it to both the indices based on market capitalisation as well as other companies in the sector.
The M&M stock has seen one of the largest increases in the stock price in the auto sector. It has grown by 56.7% in the last year which is much higher than the increase in the stock prices of other auto companies such as Tata Motors Ltd (21.8%) and Maruti Suzuki India Ltd (16.8%). In fact, the BSE auto index has seen an increase of around 23% in the past year.
It is a large cap stock with a market cap of over ₹1.5 lakh cr. For context, both the Nifty 100 and Nifty 50 have seen dips in the past year ( 2.73% and 3.45% respectively). Its share price growth can be attributed to its recent and upcoming launches of new vehicles.
BEL has shown a return of 57.76% in the last year – starting from ₹66.43, reaching a high of ₹112.85 in August 2022 and currently hovering at around ₹104.8. BEL is a large cap firm with a market capitalisation of ₹74,596 cr.
It is a largely Indian government-owned company that produces aerospace and defence electronic products which is a very key component of modern warfare.
The VBL stock price has seen a growth of around 115.5% since October 2021 – from ₹543 to ₹1170.50 in September 2022. It is a large cap stock with a market capitalisation of a whopping ₹67,108 cr.
VBL produces, bottles and distributes beverages of major players such as Pepsico, Tropicana, Aquafina etc and is one of the leading firms in this field in India.
Cochin Shipyard Ltd. has shown a 40.7% return in the past year – its stock price has increased from ₹361 to ₹508. It is a mid cap stock with a market cap of ₹6533 cr – in comparison, the Nifty midcap 100 has given returns of 2.46% last year and the Nifty 50 has actually fallen by around 3% in the last one year.
Cochin Shipyard Ltd. is a shipbuilding facility in Kochi, Kerala which has built large vessels such as oil tankers as well as the recently acquired aircraft carrier INS Vikrant.
The stock price of Escorts Kubota Ltd increased from ₹1480.10 to ₹2127.80 – a total 43.76% rise. It has a market capitalisation of over ₹27,117 cr – hence one could consider it a large cap company.
It produces agricultural machinery and has very few competitors in that sector – a sector that is slated to remain a major sector in the economy due to a large room for expansion in the mechanisation of agriculture in India.
Conclusion
The above stocks can act as a guide for your future equity investments. It is important to diversify your portfolio and explore more stocks and their price movements. If you wish to explore the stock market for yourself, try opening a demat account online with a trusted broker.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted here are only exemplary and not recommendatory.
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