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Stocks That Gained Over 20% since Cash Crunch

After 8.00 pm of November 8, the


time of Prime Minister Narendra
Modis
demonetization
announcement, there was no doubts
that markets were going to take a
beating. That came to pass, with
some help from the shocking
outcome of the US elections. The
BSE S&P Sensex fell 5 percent the
day after and Nifty declined over 6
percent.
Retail investors in the small and mid-cap space took a larger hit. Market analysts and
economists have predicted a short and sharp correction both in the markets and the
economy but are expecting demonetization benefits in the mid- to long term.
But some companies challenged the trend and posted handsome gains. Below is a
collection of five such companies that have given more than 20 percent returns since
demonetization was announced. Even as the gains in the stocks had nothing to do with
demonetization, it is evidence to the fact that investors think the intrinsic positives
overshadow any negative impact the cash ban may have.

Apparel and Textile:


Swan Energy
Swan Energy share price closed at Rs. 113 November 8 and on December 5 the stock
was last traded at Rs 166.85, thus gaining almost 48% since demonetization. Swan
Energy is the top 500 recommendation by Dynamic Levels for the quarter.
Swan Energy (erstwhile Swan Mills) mainly earns its revenues from the textile
business. The company recorded a profit of Rs 2.16 crore on a revenue of Rs 98.21

crore as compared to a profit of Rs 0.58 crore for the entire FY16. The stock reacted
optimistically to the Q2FY17 results which were declared on November 14.
Though the textile division at present contributes a massively of the revenue, the
company also has a real estate and an energy division. The energy division could see
some importance as the company is developing Indias first Floating Storage and Regasification Unit (FSRU) at Jafrabad, Gujarat. Swan Energys annual report indicates
that 100 percent of its capacity is booked on a long-term commitment basis from
IOC, BPCL, ONGC and GSPC.

Steel and Lubricant:


Balmer Lawrie
The Closing of Balmer Lawrie share price on November 8 stands at Rs 768.20 While
on December 5th it was last traded at Rs 1045 thus gaining over 35%. It is the top
500 recommendation for the quarter made by Dynamic Levels as well.
Balmer Lawrie stock witnessed investors interest after the company announced a
3:1 bonus on November 10. There is nothing remarkable in the companys recent
quarter performance. However, the company is sitting on Rs 457.5 crore cash on its
balance sheet which is equivalent to nearly 16 percent of its current market
capitalization.

Infrastructure:
Adani Transmission
Adani Transmission is the Multibagger stock as identified by Dynamic Levels. Adani
Transmission share price, on November 8 had closed at Rs 46.15 and it was last
traded at Rs. 56.10 on December 5th, gaining 22%.
Adani Transmission has gained on back of the news that it has bought three
transmission line assets from Reliance Infrastructure. This was the second
achievement in recent times by the company after it acquired two transmission lines
from GMR Energy. Adani Transmission, the chief private sector transmission
company, has AAA rated clients and a 35-year annuity visibility. The only private
sector company with a devoted transmission portfolio is attracting investors who
look at long-term visibility.

Welspun Corp
Welspun Corp is another stock that gained over 20% in the Infra space and is a top
500 identified stock by Dynamic Levels for the quarter. On November 8th, Welspun
Corp share price closed at Rs. 64.85 and on 5th December, it was last traded at Rs.
78.50 and has gained 21% since demonetization.
Welspun Corp has been a gainer due to the changing fundamentals. The pipeline
manufacturer moved up after touching its 52-week low at Rs 55.05 on 9th November
2016. Rising oil prices will do good to the company as investments in the sector had
almost stopped over the years. Further, the stock also benefitted after Oil Minister
Dharmendra Pradhan said that gas pipeline network in the country would be
doubled over the next five years. The company also declared the appointment of a
new Managing Director, Lalit Naik, who was earlier MD of Aditya Birla Nuvos
chemical division.

Auto:
Balkrishna Industries
Balkrishna industries share price closed at Rs. 1010 on November and on December
5th it was last traded at Rs. 1216.90, hereby gaining 20% since then. This is a top 500
recommendation by Dynamic Levels.
Balkrishna Industries shot up on a strong performance for the September quarter.
The company posted a profit of Rs 243 crore for the quarter as against Rs 106.2
crore in September 2015. Balkrishna Industries is among the large heavy vehicle
tyre manufacturers worldwide. The company posted strong growth at a time when
its global competitor Titan International posted a marginal drop.
These five stocks from different sectors have posted the gain anywhere from 20% to
50% since the demonetization. These stocks have defied the theories of loss from
cash crunch. One should keep an eye on these five beauties for the enrichment of
their portfolio.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research
team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure
Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory
Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare
that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI,
Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor
penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/
his Relative:
Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the
subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Tanaya Nath