High Volatile Stocks in September 2024 – Based on Beta

Investing in highly volatile stocks is similar to navigating a ship through stormy seas. It can be thrilling and potentially rewarding, but it can also come with significant risks and requires a careful strategy. In this blog, check a few high-volatile stocks in September 2024 and also learn what high-volatile stocks are, along with the risks involved.

High Volatile Stocks in September 2024 – Based on Beta

Note: The stocks mentioned above have been selected from the Nifty 500 universe and sorted based on beta value as of September 10, 2024.

Overview of 5 High Volatile Stocks

1. Sterling & Wilson Renewable Energy Ltd: Sterling and Wilson Solar Ltd is a leading end-to-end solar engineering, procurement, and construction (EPC) solutions provider globally and is also engaged in the operation and maintenance (O&M) of solar power projects. As of June 2024, the unexecuted order value stood at ₹9,396 crore as compared to ~₹8,084 crore as of March 2024.

Key Metrics:

• Return on Equity (ROE): -56.7%
• Return on Capital Employed (ROCE): 3.77%

2. Sammaan Capital Ltd: Sammaan Capital Ltd (formerly known as Indiabulls Housing Finance Ltd is engaged in the business of providing home loans and loans against property. It also provides corporate mortgage loan-lease rental discounting and residential construction finance. During Q1FY25, New AUM stood at ₹ 29,180 Crore. In addition, 66% of this AUM has already been sold down.

Key Metrics:

• ROE: 6.56%
• ROCE: 10.1%

3. Poonawalla Fincorp Limited: Poonawalla Fincorp Limited (erstwhile Magma Fincorp Limited) is a non-deposit-taking NBFC registered with RBI. It is engaged in providing consumer and MSME financing, as well as General Insurance Services. The company operates a well-diversified AUM across MSME and consumers with multi-sourcing channels and also holds the right balance of secured to unsecured mix at 49:51.

Key Metrics:

• ROE: 13.9%
• ROCE: 10.8%

4. IndusInd Bank Limited: Incorporated in 1994, IndusInd Bank Limited is a commercial bank under the Banking Regulation Act 1949, which provides a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations. During Q1FY25, the liabilities initiatives of affluent and NRI banking maintained robust traction, growing at 23% and 33% YoY, respectively. The home loan book grew by 31% QoQ and now stands at ₹2,348 crore.

Key Metrics:

• ROE: 15.2%
• ROCE: 7.93%

5. Adani Total Gas Ltd (ATGL): Adani Total Gas Limited is engaged in the City Gas Distribution (CGD) business and supplies natural gas to domestic, commercial, industrial and vehicle users. As of Q1FY25, CNG Stations have now increased to 559, adding 12 new CNG Stations. ATGL received approval from the regulator, PNGRB, for transferring the Letter of Authorization of Jalandhar GA pursuant to the Business Transfer Agreement. Jalandhar GA in Punjab provides high-volume growth opportunities to the Company. 

Key Metrics:

• ROE: 20.5%
• ROCE: 21.2%

What Are High Volatile Stocks?

High-volatile stocks are shares of companies whose prices exhibit significant fluctuations over short periods. In general, those stocks having a beta of more than 1 tend to be more volatile as It’s used to quantify the risk of an investment relative to the market.

Risk Associated With High Volatile Stocks

• Increased Risk of Loss: The flip side of high returns is high risk. The rapid price swings can result in substantial losses if the market moves against you or if you misjudge the timing.
• Emotional Stress: The volatility can be stressful, especially for those who are not prepared for the emotional rollercoaster that comes with significant price swings.
• Potential for Poor Decision-Making: High volatility can lead to impulsive decisions driven by short-term market movements rather than long-term fundamentals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.