5 Best Performing Stocks Since Last Election Year

India is one of the most populous countries and one of the largest democracies in the world, and its elections are the talk of the town.

Be it politicians, political pundits, stock market gurus, and our own parents, the election buzz is what we hear everywhere now.

While everyone is talking about the elections, let's take a look back at how the markets have performed since the last election.

In the last five years, the stock market indices Nifty 50 and Sensex have given over 90%.

Various development themes such as 'Aatmanirbhar Bharat', 'Make in India', 'Namo Bharat', and 'Bharat Mala' have supported this growth.

Although the indices have managed to give a high double-digit growth, several stocks have zoomed over 1,000%, indicating their potential to grow in favourable conditions.

Today, we list five such stocks that made several investors millionaires.

Take a look...

#1 Adani Green Energy

First on the list is Adani Green Energy, and it shouldn't come as a surprise, considering how all the Adani Group stocks have rallied in the last five years.

The shares of Adani Green Energy have zoomed over 4100% in the last five years.

If you invested Rs 10,000 in this stock on the day of election result in 2019, it would be worth Rs 424,518 today.

So, what caused this rally?

Adani Green Energy is in the business of generating power through renewable energy sources. It has an installed capacity of 8.4 gigawatts (GW) of renewable energy spread across solar and wind energy sources, one of the largest in the country.

The company also has projects with a total capacity of over 11 GW in under-execution and near-construction stages.

To support the government's renewable energy commitments of 500 GW capacity by 2030, the company is actively working towards increasing its capacity to 45 GW by 2030.

In the last five years, the company's installed capacity has grown from just 2 GW to 8.4 GW.

This shows how aggressively the company is planning and executing its strategies to meet its 2030 target.

Adani Green Energy mainly supplies power to all sovereign companies and agencies, including NTPC, Solar Energy Corporation of India, and various state DISCOMs.

In the last five years, along with its generation capacity, its power supply also more than tripled, leading to a growth in revenue and net profit.

The revenue grew by a compound annual growth rate (CAGR) of 33.4%, and the net profit stood at Rs 9.7 billion (bn) in the financial year 2023, as against a net loss of Rs 4.7 bn five years ago.

The return on equity (RoE) and return on capital (RoCE) have also improved continuously in the last five years.

Adani Green Financials (2018-2023)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue (Rs m)	21,710	29,430	37,540	55,770	91,610
Revenue Growth (%)		35.6%	27.6%	48.6%	64.3%
Net Profit (Rs m)	-4,715	-610	1,820	4,890	9,730
Net Profit Margin (%)	-22.9%	-2.4%	5.8%	9.5%	12.5%
Return on Equity (RoE)	-56.1%	-8.0%	21.1%	41.1%	16.5%
Return on Capital Employed (RoCE)	4.9%	8.4%	10.5%	7.0%	8.7%

Source: Equitymaster

Given the government's renewable energy goal and its continued support to companies in this sector through various policies, Adani Green Energy is likely to continue its growth momentum in the next few years as well.

Another Adani company that made it to the list is Adani Enterprises, an incubator for most of the Adani companies in the mining and infrastructure sectors.

The share of Adani Enterprises soared over 1,700% in the last five years.

To know more checkout Adani Green Energy's financial factsheet and latest quarterly results.

#2 JBM Auto

Second on the list is JBM Auto.

The company is an auto ancillary company and is engaged in manufacturing steel metal components, tools, dies and moulds, and buses.

In the last five years, the shares of the company have given over 1900% return. Had you invested Rs 10,000 back in 2019, it would be worth Rs 202,000 today.

The primary reason for this rally is that the company ventured into e-bus manufacturing.

With the electric vehicle (EV) revolution picking up pace, the company secured several orders from government and private entities at a very fast pace.

At present over 5,000 e-buses of JBM Auto are on the Indian roads and the company has orders for over 4,500 buses to be executed in the next three years.

From almost 0% share in revenue, the e-bus segment grew to 12% in just four years and expects to reach 30% share by the end of 2024.

While the e-bus segment played a major role in the company's growth, its established presence in the components business has also contributed to this growth.

In the last five years, the company started supplying components to two-wheeler companies apart from commercial and passenger vehicle manufacturers.

The high-margin tooling business, which accounts for 7% of the revenue, is also helping the company grow its profits at a rapid pace.

In the last five years, the revenue and net profit have grown by a CAGR of 11.7% and 5.4% respectively.

The RoE and RoCE have also seen consistent growth post-Covid and currently stand at 12.2% and 17.8%, respectively.

JBM Auto Financials (2018-2023)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue (Rs m)	22,319	19,621	19,940	32,140	38,844
Revenue Growth (%)		-12.1%	1.6%	61.2%	20.9%
Net Profit (Rs m)	962	690	493	1,564	1,251
Net Profit Margin (%)	4.4%	3.5%	2.5%	4.9%	3.2%
Return on Equity (RoE)	14.9%	9.8%	6.6%	17.4%	12.2%
Return on Capital Employed (RoCE)	23.5%	19.1%	13.9%	19.1%	17.8%

Source: Equitymaster

The government policies to support the auto industry and electric vehicles adaption in the last five years have also helped JBM Auto's growth.

The government's target is to become net-zero, and its focus on 'Make-in-India' will further fuel the growth of JBM Auto in the next few years.

To know more, checkout JBM Auto's financial factsheet and latest quarterly results.

#3 Jupiter Wagons

Third on the list is Jupiter Wagons.

This was a surprise for many, considering the company is not from the high-growth emerging sectors like renewable energy and electric vehicles.

Jupiter Wagons manufactures railway wagons, wagon components, and load bodies for commercial vehicles.

It majorly supplies the India Railways but also caters to commercial vehicle companies like Tata Motors, Mahindra and Mahindra, and VE Commercial Vehicles.

In the last five years, the shares of the company soared over 1800%, taking an investment of Rs 10,000 to Rs 193,900.

What caused this rally?

The primary reason behind this is the government's push towards infrastructure.

In the last few years, the government has been allocating a significant portion of its budget towards infrastructure, and a majority of this was secured by the railways.

The Indian government is concentrating on improving its railway network across the country to cater to the growing demand for travel and logistics.

Jupiter Wagons jumped at this opportunity and acquired Commercial Engineers & Body Builders Co Ltd (CEBBCO) through a stressed asset sale to increase its wagon manufacturing capacity.

At present, Jupiter Wagons is one of the largest wagon manufacturers in India, with a capacity of 9,600 wagons per annum.

Over the last five years, it has secured a large number of orders from government and private entities, which helped the company grow its revenue tenfold.

The revenue and net profit grew by a CAGR of 57.1% and 6.1% respectively. Its RoE and RoCE also improved consistently and currently stand at 15% and 27.9% respectively.

Jupiter Wagon Financials (2018-2023)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue (Rs m)	2,166	1,290	9,976	11,817	20,733
Revenue Growth (%)		-40.4%	673.3%	18.5%	75.5%
Net Profit (Rs m)	887	-1	534	497	1,207
Net Profit Margin (%)	41.1%	-0.1%	5.4%	4.2%	5.8%
Return on Equity (RoE)	92.5%	-0.1%	8.4%	7.3%	15.0%
Return on Capital Employed (RoCE)	85.3%	3.0%	13.1%	13.2%	27.9%

Source: Equitymaster

At the end of December 2023, the company's order book stands at Rs 700 million (m), providing enough revenue visibility over the medium term.

Moreover, the company is investing in increasing its production capacity to 12,000 by June 2024, which will increase the company's order execution speed.

Going forward, if the company continues to keep up its momentum in order execution, we can expect the revenue and profit growth to remain high in the medium term.

To know more, checkout Jupiter Wagons' financial factsheet and latest quarterly results.

#4 Jindal Stainless

Next on the list is Jindal Stainless.

The company is the largest manufacturer of stainless steel flat products in India.

With its diversified range of products, the company caters to automobile, construction, railways, and consumer goods industries.

With growth across all its user industries, Jindal Stainless has also witnessed high growth across all its product categories.

This is the reason why the company's shares soared over 1650% in the last five years. If you had invested Rs 10,000 in this company on 23 May 2019, it would have been worth Rs 179,500 today.

The company has a 30 m metric tonnes of melting capacity, 0.72 m metric tonnes of hot strip mill capacity, 1.4 m metric tonnes and 1.1 m metric tonnes of hot rolled and cold rolled annealing pickling capacity.

Over the years, the company has undertaken greenfield and brownfield capex to expand its manufacturing capacity across all product categories.

This helped the company ramp up its production and capacity utilisation levels, which resulted in high sales volumes for the company.

In the last five years, Jindal Stainless' revenue and net profit have grown by a CAGR of 21.4% and 70.4%, respectively.

The RoE and RoCE at the end of the financial year 2023 stood at 17.5% and 21.5%, respectively.

Jindal Stainless Financials (2018-2023)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue (Rs m)	135,899	129,908	122,294	330,641	358,941
Revenue Growth (%)		-4.4%	-5.9%	170.4%	8.6%
Net Profit (Rs m)	1,451	726	4,195	31,094	20,838
Net Profit Margin (%)	1.1%	0.6%	3.4%	9.5%	5.8%
Return on Equity (RoE)	5.6%	2.7%	13.3%	45.1%	17.5%
Return on Capital Employed (RoCE)	14.9%	13.8%	20.4%	47.3%	21.0%

Source: Equitymaster

The company is experiencing strong demand from railways, process industries, automobiles, infrastructure, and pipes and tubes industries.

Going forward, the government's continued support of all its user industries will help the company grow its revenue and profits in the medium term.

To know more, checkout Jindal Stainless' financial factsheet and latest quarterly results.

#5 Tanla Platforms

Last on the list is Tanla Platforms.

It is a technology company that offers cloud communications services to help its clients communicate effectively with their customers.

Tanla offers cloud communication solutions through messaging and application-to-peer (A2P) messaging services.

The company makes use of artificial intelligence (AI), machine learning (ML), and more to ensure encrypted and reliable communication channels.

So why is a tech company on this list?

Tanla Platforms is an almost monopoly in the OTP (one-time password) business. It is also the world's largest communications platform-as-a-service (CPaaS) players, and processes more than 800 bn interactions annually.

About 70% of India's A2P SMS traffic is processed through its distributed ledger platform, Trubloq, which makes it the world's largest Blockchain use case.

Its customers are all reputed businesses such as Airtel, Meta, LinkedIn, HDFC Bank, and Department of Telecommunications.

All this led to strong earnings for the company. In the last five years, the revenue and net profit have grown by a CAGR of 27.2% and 71.9% respectively.

As a result, the RoE and RoCE also improved consistently and currently stand at 30% and 38.2%, respectively.

Tanla Platforms Financials (2018-2023)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue (Rs m)	10,146	19,552	23,634	32,221	33,808
Revenue Growth (%)		92.7%	20.9%	36.3%	4.9%
Net Profit (Rs m)	298	-2,112	3,561	5,393	4,476
Net Profit Margin (%)	3.0%	-10.9%	15.2%	16.8%	13.3%
Return on Equity (RoE)	2.8%	-18.0%	22.8%	23.2%	19.0%
Return on Capital Employed (RoCE)	4.2%	-30.6%	40.0%	40.1%	30.0%

Source: Equitymaster

A strong financial performance drove the stock's performance on the bourses.

In the last five years, the shares of the zoomed over 1,600%. So, Rs 10,000 invested five years ago would be Rs 176,900 today.

With the growth in digital interactions and UPI transactions, the need for innovative solutions for multichannel communication is high.

Hence, Tanla Platforms is focusing on the CPaaS sector to capitalise on this growth.

Going forward, the company's revenue and net profit growth will be driven by the addition of new communication channels and potential price hikes.

To know more, checkout Tanla Platform's financial factsheet and latest quarterly results.

List of other best-performing stocks since the last election

Company	Returns (%)
Dixon Technologies (India) Ltd.	1416.0%
KPIT Technologies Ltd.	1249.5%
Persistent Systems Ltd.	1220.3%
CG Power and Industrial Solutions Ltd.	1219.1%
HLE Glascoat Ltd.	1212.4%
Linde India Ltd.	1049.6%
Adani Power Ltd.	1002.8%
Trent Ltd.	957.0%
Varun Beverages Ltd.	921.1%
BLS International Services Ltd.	908.2%
Rail Vikas Nigam Ltd.	898.7%
Apar Industries Ltd.	870.9%

Source: Ace Equity

Conclusion

Favourable government policies, high demand, and strong financial performance drove the prices of the above-mentioned companies upwards.

Although they have given very high returns in the last five years, it doesn't mean they will continue to do so in the future as well.

Hence, it is important to do thorough research and invest in stocks that are fundamentally strong for the long term to reap significant returns.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...