Top Performing stocks of 2024 So Far

The Indian stock market has emerged as the undisputed champion of global equities in the past year.

Leaving even the tech-heavy NASDAQ in the dust, the MSCI India index has skyrocketed over 36%.

This isn't just a story of the big boys either. While the widely followed NIFTY 50, comprised of largecap giants, has posted a respectable 11% gain, the real action is happening further down the marketcap ladder.

Smallcap and midcap stocks have witnessed an explosive surge of more than 25%, indicating a broad-based market rally and a potential change in investor sentiment.

What's even more intriguing is how individual stocks have defied expectations.

Cochin Shipyard, the belle of the ball, was the Sensex's best-performing stock during the first half of 2024. However, there were several less predictable winners as the benchmark indices rose to record-high levels.

Now let's explore which stocks have emerged as the true winners of the first half of 2024.

#1 Cochin Shipyard

First on the list is Cochin Shipyard.

Cochin Shipyard is a government-owned company and India's largest public-sector shipyard by capacity.

Even though it is registered as a commercial shipyard, it derives most of its revenues from building and repairing defence ships.

It's not just a unique player to ride the potential in India's defence manufacturing space, but the company is towering strong performance in a challenging sector.

While registered as a commercial shipyard, a significant portion of CSL's revenue comes from building and repairing defence vessels. This experience and expertise make them a trusted partner for the Indian Navy's shipbuilding needs.

They've constructed a wide range of warships, including destroyers, corvettes, anti-submarine warfare (ASW) shallow water crafts, and auxiliary vessels, making them a unique player in defence space.

Being unbeaten, the shares of the Cochin shipyard have zoomed 294% in 2024 so far.

This was on the back of Cochin Shipyard receiving an order from a European client to design and build one Hybrid Service Operation Vessel (SOV) with an option for two more such vessels.

The Rs 5-10 bn project is expected to be completed by the end of 2026.

As of 18 June 2024, the company boasts an order book valued at Rs 215 billion (bn). This impressive order book can be attributed to its status as India's first greenfield shipbuilding yard, making it top 10 defence stocks in India ranked by order book value.

Going forward, it is building a new dry dock and a 600-ton gantry crane for handling vessels to expand its shipbuilding and repair capabilities.

It is expanding the international ship repair facility (ISRF) at Cochin by adding a ship lifting facility to undertake more complex ship repair orders and improve its ship repairing revenue.

The company is also setting up a modernised shipbuilding facility in West Bengal to build ships and vessels.

For more details, see the Cochin Shipyard company fact sheet and quarterly results.

#2 Aegis Logistics

Next on the list is Aegis Logistics.

The company imports, stores, and distributes liquified petroleum gas (LPG), chemical products, and vegetable oils.

It also makes marine products and provides bunker fuels to ships.

Aegis Logistics has a large fleet, including LPG terminals, bulk liquid handling terminals, filling plants, pipelines, and LPG gas stations, which it uses to deliver products and services.

So far in 2024, shares of Aegis Logistics have rallied around 155%, rising from Rs 349 in January to Rs 889 as of 4 July 2024.

This can be attributed to the company reporting better-than-expected earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 3.1 bn, up 51% year-on-year (YoY), mainly aided by strong EBIT growth of 105% YoY for the liquids division.

Further, Aegis Logistics announced an ambitious capex plan for the commissioning of a 25,000-kilo litre (KL) at Kandla in FY25, the full commissioning of 110,000 KL capacity at JNPT by FY25, 71,000 KL capacity to be operational in FY25, and an additional 25,000 KL capacity to be operational in FY25 at Kochi.

Moreover, in the gas division, two cryogenic LPG projects at Pipavav and Mangalore are progressing on time and within budget.

Aegis Logistics will benefit from the ongoing capacity expansion plan to meet the rising import/export demand for liquid and LPG in India.

The company commissioned the Kandla LPG project and obtained an additional liquid terminal in Kandla (post completion of the Vopak JV) in mid-2023 post, which the terminalling and distribution volumes increased significantly in FY23 as well in FY24.

Furthermore, management expects the ongoing capex projects of around Rs 21 bn to be completed in FY25 which will increase its storage capacity.

For more details, see the Aegis Logistics company fact sheet and quarterly results.

#3 Hitachi Energy

Next on the list is Hitachi Energy.

Following the demerger of ABB India's power grid business unit, Hitachi Energy India was formed to provide product, system, software, and service solutions across the entire power value chain.

At present, the company's portfolio includes an extensive range of high-voltage transformers, grid automation products, and power quality products and systems.

As of 4 July 2024, the shares of Hitachi Energy have soared by 152%.

This can be attributed to the company securing an order valued at approximately Rs 7.9 bn from Hitachi Energy Australia, a fellow subsidiary.

This order pertains to the Marinus Link project, which involves voltage source converter (VSC) high voltage direct current (HVDC) links between Tasmania and Victoria.

The company will supply equipment for the Burnie Converter Station and the Latrobe Valley Converter Station, with the order scheduled to be executed over four years.

The Marinus Link project holds national significance for Australia and will play a fundamental role in the country's energy ecosystem. Hitachi Energy India will play a crucial role in supporting this project.

Lastly, shares of the company have been in focus owing to Hitachi's continued work towards three major growth sectors, including renewable energy, electrification of Indian railways and metro expansion and improving connectivity.

This strategic positioning has bolstered investor confidence, reflected in the rising share price, as the company stands at the forefront of India's transformative energy and transportation projects.

For more details, see the Hitachi Energy company fact sheet and quarterly results.

#4 Housing & Urban Development Corporation

Next on the list is the Housing & Urban Development Corporation (HUDCO).

HUDCO is an Indian public sector undertaking engaged in housing finance and infrastructure project finance. The government granted Navratna Status to PSU on 18 April 2024.

So far in 2024, shares of HUDCO have rallied around 152%, rising from Rs 129 in January to Rs 324 as of 4 July 2024.

The upcoming budget has sparked significant market interest as it coincides with heightened anticipation.

Investors are particularly optimistic about HUDCO due to the government's robust focus on affordable housing as the upcoming budget is expected to introduce measures beneficial to HUDCO and similar state-run firms.

Amid this backdrop, a recent report has emerged indicating potential benefits for HUDCO and IREDA. According to a government source, there are discussions about including these entities under section 54EC aimed at enhancing investment opportunities.

Further, on 11 June 2024, the NDA government announced that it will expand the Pradhan Mantri Awas Yojana by constructing an additional 30 million (m) rural and urban homes.

This decision is aimed at addressing India's critical housing needs. The initiative seeks to meet the growing demand from eligible households across the country.

HUDCO aims to increase its assets under management (AUM) to over Rs 1.5 tn by the financial year 2026, up from the current Rs 840 bn.

For more details, see the HUDCO company fact sheet and quarterly results.

#5 Mazagon Dock Shipbuilders

Next on the list is Mazagon Dock Shipbuilders.

Mazagon Dock Shipbuilders Limited, a jewel of India's defence sector, builds and repairs warships, submarines and other vessels for the Indian Navy, Coast Guard and ONGC.

The company's diverse portfolio encompasses cargo ships, passenger liners, water tankers, fishing vessels, destroyers, submarines, and corvettes.

So far in 2024, shares of Mazagon Dock Shipbuilders have rallied around 145%, rising from Rs 2,283.8 in January to Rs 5,600.8 as of 4 July 2024.

This was on the back of its strong order book.

As of 18 June 2024, the company reported a strong order boom of Rs 385.6 bn. It is the country's largest shipbuilder, both in terms of revenue and order book.

This strong position is largely due to its unique role in the Indian defence sector, specialising in building conventional submarines and destroyers for the Indian Navy.

It is currently awaiting approval from the Indian government for a submarine project worth Rs 200 bn for manufacturing three more submarines, the first of which was inducted in 2017, which is further set to bolster its order book.

The Navy has a fleet requirement of around 175 ships, which includes next-generation destroyers, next-generation corvettes, and frigates.

The projects may not necessarily be awarded to Mazagon Dock, despite its expertise. It has to compete with other government shipyards, as well as with the privately owned L&T, for new projects.

Mazagon Dock and L&T are shortlisted for the Indian Navy's P75I project, which involves manufacturing six more submarines with an air-independent propulsion system (AIP) and lithium-ion batteries.

Going forward, it is planning to develop a greenfield shipyard at Navi Mumbai with a ship lift, wet basin, workshops, and ship repair facilities.

For more details, see the Mazagon Dock Shipbuilder company fact sheet and quarterly results.

#6 Oracle Financial Services Software

Next on the list is Oracle Financial Services Software.

OFSS, majority-owned by Oracle, is a world leader in providing IT solutions to the financial services industry.

The company develops, sells and markets computer software, and computer systems and provides consultancy and other information technology (IT) activities.

This midcap stock has risen from around Rs 4,336 apiece levels to Rs 10,438 per share, logging around 141% gains in 2024.

This was seen after its parent Oracle Corp. reported strong earnings overnight in the US.

Its parent company, Oracle Corp. reported better-than-expected bookings and announced partnership deals with its tech rivals.

Further, the sentiment around IT stocks has turned positive ever since IT majors TCS, Wipro, and Infosys posted earnings for the third quarter.

For Oracle Financial, the growth in the fintech space will keep the company in focus.

Going forward, the adoption of AI in financial services and fintech companies is expected to grow at a CAGR of 23.37% in the next two years, a huge prospect for Oracle Financial as a leader in the AI space.

For more details, see the Oracle Financial Services company fact sheet and quarterly results.

#7 Rail Vikas Nigam

Next on the list is Rail Vikas Nigam (RVNL), established in 2003 by the Indian government, which is a critical player in the country's rail infrastructure development.

The company acts as the Ministry of Railways' execution arm, undertaking various projects including doubling existing lines, gauge conversion, new line construction, major bridges, and railway electrification.

As of 4 July 2024, the shares of Hitachi Energy have soared by 130% this year.

This can be attributed to its huge order win. In the company, May 2024 announced that it had received a letter of acceptance from the Kharagpur division of Southeastern Railway.

The order entails upgrading the electric traction system from 1x25 KV to 2x25 KV for the Kharagpur Bhadrak section to meet a 3,000 MT loading target.

The scope of the project involves all phases of developing the new system, including design, supply, erection, testing, and commissioning. The order value of the contract is more than Rs 1.5 bn and is expected to be completed within 18 months.

Apart from the mega order win, strong quarterly earnings supported the positive sentiment in RVNL shares.

In Q4FY24, RVNL's net profit surged 33.2% YoY to Rs 4.8 bn, compared to Rs 3.6 bn in the same period last year. This growth was driven by higher revenue and improved operations.

The company's revenue came in at Rs 67.1 bn, a growth of 18.8% on a YoY basis.

RVNL has ambitious plans for FY25, targeting a topline of over Rs 230 bn and a bottom line of Rs 16-17 bn. It also aims to significantly expand its order book to Rs 1,000 bn.

For more details, see the Rail Vikas Nigam company fact sheet and quarterly results.

#8 Schneider Electric Infrastructure

Next on the list is Schneider Electric Infrastructure.

The company is a subsidiary of Schneider Electric, a French multinational company specialising in energy management and automation.

Its core business is the manufacturing, designing, and distributing technologically advanced products and systems for electricity distribution.

The shares of the company have zoomed 128% in 2024 so far to Rs 921.7.

This was on the back of Schneider Electric Infrastructure partnering with Nvidia to optimise data centre infrastructure.

Under this partnership, Schneider Electric aims to provide data centre owners and operators with the tools and resources necessary to seamlessly integrate new and evolving AI solutions.

In April, the company's head for the data centres division said in an interview that the boom in demand is only going to grow fuelled by the rise of cloud computing, AI, and other data-centric applications.

Going forward, the company wants to focus more on the AI space.

For more details, see the Schneider Electric Infra company fact sheet and quarterly results.

#9 NBCC

Next on the list is NBCC India.

NBCC is a government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs.

It operates in three major segments - project management consultancy, engineering procurement & construction, and real estate.

The shares of NBCC have zoomed 125% in 2024 so far to Rs 186.

This was seen after NBCC's subsidiary received an order worth Rs 920 million (m).

Before that, the company bagged three orders worth Rs 3.7 bn in February 2024.

It also received a work order of Rs 1.4 bn for HSCC India Ltd to procure lab equipment to install in the upcoming Himachal Pharma testing lab.

The other reason why shares of NBCC (India) have surged is owing to the government's affordable housing push in this year's interim budget.

In February 2024, Finance Minister Nirmala Sitharaman announced building 20 m more houses for the rural poor in the next five years under the PM Awas Yojana (Grameen).

Going forward, NBCC is expecting around Rs 200 bn worth of order inflows in FY25, with a focus on PMC and redevelopment projects.

For more details, see the NBCC (India) company fact sheet and quarterly results.

#10 Jupiter Wagons

Last on the list is Jupiter wagons.

Jupiter Wagons is an integrated railway engineering company for freight wagons and passenger coach items for the Indian Railways.

It offers wagons products, such as open wagons, covered wagons, flat wagons, hopper wagons, container wagons, and special-purpose wagons.

It offers wagon accessories, such as alloy steel cast bogies, high tensile centre buffer coupler, and high-capacity draft gear.

So far in 2024, shares of Jupiter Wagons have rallied around 125%, rising from Rs 319.9 in January to Rs 721.2 as of 4 July 2024.

The rally was seen after Jupiter Wagons' subsidiary, Jupiter Electric Mobility (JEM), got the approval from Automotive Research Association of India (ARAI) to start manufacturing battery-operated light commercial vehicles (LCVs).

The battery-operated light commercial vehicle will be manufactured under the JEM TEZ brand name.

For FY24, the company's total revenue surged over 76.9% YoY to Rs 36.7 bn, driven by a significant rise in order inflow during the year.

As of 31 March 2024, the company's order book stands at Rs 71 bn.

This momentum translates to the bottom line as well, with net profit climbing a whopping 174.3% to Rs 3.3 bn.

Looking ahead, the firm is confident in maintaining this momentum. It expects a growing share of specialised wagons for the steel, cement, and auto sectors, featuring industry-leading designs, which should improve margins.

For more details, see the Jupiter Wagons company fact sheet and quarterly results.

Conclusion

Investing in top-performing stocks can be appealing, but it's important to consider several factors before making any investment decisions.

High-performing stocks may be overvalued, meaning their prices might be inflated relative to their intrinsic value. It's essential to assess whether the stock's current price is justified by its fundamentals.

Understanding market trends is also crucial, as some stocks perform well due to short-term factors that may not be sustainable.

Top-performing stocks can also be volatile. So be prepared for price swings and ensure you have a strategy in place for managing such volatility.

Relying solely on top-performing stocks can be risky, so diversifying your portfolio across different sectors and asset classes can help mitigate risk.

Conduct thorough research on the company's financial health, management, and future growth prospects, as past performance does not guarantee future success.

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...