Top 5 Performing IPOs of 2024 So Far

In 2024, India has firmly taken the lead in global IPO volumes, with 178 companies debuting on the stock market.

In the first half of 2024 alone, India accounted for 25% of global IPO activity. This surge has also positioned the country at the top in terms of mainboard-listed companies, with over 5,450 now listed-the highest in the world.

The trend of strong listing gains, which peaked in 2020, continues with mainboard IPOs generating an average gain of around 30%.

The BSE IPO Index has outperformed the broader BSE 500, while SME IPOs have seen remarkable listing gains, driven by robust domestic demand and investor confidence.

Of the approximately 58 mainboard IPOs in 2024, over 25 have delivered returns exceeding 50%, and 7 have achieved multibagger status.

In this article, we'll take a closer look at the top 5 best-performing IPOs of 2024 so far.

#1 Jyoti CNC Automation

First on the list is Jyoti CNC Automation.

Jyoti CNC Automation Ltd (JCAL) is one of the world's leading manufacturers of metal-cutting computer numerical control (CNC) machines.

It manufactures and supplies 5-axis CNC machines, CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers (VMCs), and CNC Horizontal Machining Centers (HMCs), for clients in different industries such as aerospace and defence, auto and auto components, general engineering, EMS, dies and moulds, and others.

Since its stock market debut on 16 January 2024, Jyoti CNC has seen a remarkable rise of around 253%, with its share price surging from the issue price of Rs 331 to Rs 1,169.

The stock was listed with a 31% gain, opening at Rs 433.

One key driver of this rally has been the company's strong performance in the June 2024 quarter. Jyoti CNC reported a 73.8% year-on-year (YoY) increase in revenue, reaching Rs 3.6 billion (bn).

Net profit soared by 475%, climbing from Rs 135.8 million (m) to Rs 509.2 m compared to the previous year.

Looking ahead, the company's growth prospects are further supported by the ongoing China Plus One strategy, which positions the CNC machine tools industry as a major beneficiary of this global shift.

CNC machines are vital for precision and efficiency in mass manufacturing, with applications spanning industries such as automotive, industrial manufacturing, medical devices, automation, robotics, aerospace, defence, electronics, construction, power, and energy.

The machining centre market is projected to grow at a compound annual growth rate (CAGR) of 12% between FY23 and FY27-three times the growth rate of the broader manufacturing sector.

Jyoti CNC holds the third-largest market share in India's metal-cutting CNC machine manufacturing segment, with approximately 10% of the market in FY23. Globally, the company ranks 12th, holding a 0.4% market share as of 2022.

Specialising in high-precision CNC machines for industries with stringent requirements, such as aerospace, medical, and defence, Jyoti CNC has established a strong presence in niche markets.

This focus allows the company to command premium pricing and build lasting relationships with its clients.

Moving forward, Jyoti CNC plans to expand its global footprint in these specialized, high-demand sectors, positioning itself for long-term growth.

For more details, see the Jyoti CNC Automation company fact sheet and quarterly results.

#2 Bharti Hexacom

Next on the list is Bharti Hexacom.

Bharti Hexacom is a wholly-owned subsidiary of Bharti Airtel.

The government-owned company Telecommunications Consultants holds a 30% stake in Bharti Hexacom. Bharti Airtel has the remaining 70% of Bharti Hexacom.

The company is engaged in the business of wireless services, fixed lines and broadband services in the state of Rajasthan, particularly in the Northeastern parts.

The company relies on a robust network infrastructure with a mix of owned and leased assets. As of 30 September 2023, it had 23,748 network towers, of which 5,005 were owned.

The stock price has risen by 154% to Rs 1,448 from its issue price of Rs 570 since it was listed on 12 April 2024.

The stock was listed with a 42% gain, opening at Rs 813.7.

This can be because Bharti Hexacom is among the best pure-plays in the Indian market as 98% of its revenues come from wireless services, compared to Bharti Airtel and Vodafone Idea.

Further, Bharti Hexacom benefits from stronger growth in subscriber numbers and organic average revenue per user (ARPU) expansion as it operates in low teledensity and internet penetration areas like Rajasthan and the Northeast.

Also, the Rajasthan Circle accounts for 78% of its revenue and the Northeast Circle for the remaining 22%.

This results in Bharti Hexacom's spectrum cost per population at 54% for 5G and 62% for 4G. Both of which are lower than Bharti Airtel's national average.

As part of its growth strategy, the company focuses on enhancing its portfolio by transitioning customers from 2G to 4G/5G, upgrading customers to higher data packs within 4G plans, facilitating pre-paid to post-paid conversions, implementing contextual data monetisation, and offering converged solutions.

These initiatives are aimed at driving Average Revenue Per User (ARPU) growth in the absence of tariff hikes.

For more details, see the Bharti Hexacom Ltd. company fact sheet and quarterly results.

#3 Premier Energies

Next on the list is Premier Energies.

Established in 1995, Premier Energies stands out as a leading integrated solar cell and solar module manufacturing company, thriving on innovative technology.

With backing from GEF Capital, a prominent Private Equity Investor in Washington DC, Premier Energies pioneers photovoltaic solutions.

Coming to its clients, some of the renowned names include NTPC, Tata Power Solar Systems, Panasonic Life Solutions, Shakti Pumps, Luminous, etc.

The stock price has risen 146% to Rs 1,109 from its issue price of Rs 450 since it was listed on 3 September 2024.

The stock was listed at Rs 839 per share on the BSE, a premium of 86% over its issue price.

The rally didn't stop there as the stock bounced another 15% on the very next day. This strong rally in the stock can be attributed to the following.

The IPO had received bids worth more than Rs 1.48 trillion (tn) compared to Rs 28 bn on offer. The company even became the second company after Tata Technologies to cross Rs 1 tn in bids during the IPO phase.

The company recently won a big order for solar water pumping systems.

The order is for supply, installation, and commissioning with a 5-year comprehensive warranty of 8,085 solar water pumping systems across various districts in Uttar Pradesh.

The order value is around Rs 2.2 billion (bn) which is expected to be executed by March 2025.

This initiative is part of the government's Pradhan Mantri Kisan Urja Suraksha scheme, which aims to provide clean energy to more than 3.5 m farmers by solarising their agriculture pumps.

As of July 2024, the company had a total order book of Rs 59.3 bn, of which 25% portion includes orders from public sector undertakings (PSUs) and government entities, while the rest is from private players.

The recent order win has taken its order backlog to over Rs 61 bn.

The order book includes some big orders like the 350 MW module supply agreement signed between Premier Energies Photovoltaic and an independent power producer in June 2024 and the order it received from NTPC in December 2023 for the supply of bifacial solar modules.

It has already achieved half of the revenue and almost 85% of the profit for FY24 in the first quarter of FY25.

The module manufacturing company is focusing more on backward integration as that's the place to be if you want real margins.

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

#4 Bajaj Housing Finance

Next on the list is Bajaj Housing Finance.

Bajaj Housing Finance is a subsidiary of both Bajaj Finserv and Bajaj Finance.

Bajaj Finance, a leader in consumer and SME lending, owns 100% of Bajaj Housing Finance, while Bajaj Finserv, a major player in financial services and insurance, holds a 51.3% stake in Bajaj Finance.

As a result, both companies are key promoters of this highly anticipated IPO. The IPO of Bajaj Housing Finance, the largest of 2024 so far, was oversubscribed nearly 67 times.

The stock price has risen 130% to Rs 161 from its issue price of Rs 70 since it was listed on 16 September 2024.

The stock of Bajaj Housing Finance listed at Rs 150 a huge premium of 114% to the issue price. It has closed even higher at Rs 165.

The company's debut on Dalal Street has triggered a surge of excitement among investors.

Another driving force behind its blockbuster listing is its strong brand positioning. As a part of the Bajaj group, the company is in good hands.

Since its modest origins in 1926, the group has grown into a successful conglomerate. It has businesses in seven industries steel, home appliances, consumer durables, financing, autos, and more.

The company is a part of the Rahul Bajaj group within the broader Bajaj family of companies. This group is focused on finance.

Further, there isn't much you can say negatively about the fundamentals of the company. It's a leading housing finance company (HFC) in India across numerous key metrics.

Within just seven years of starting mortgage operations, it became the largest non-deposit-taking HFC in India, in terms of AUM.

As of the end of FY24, it was the second-largest HFC and the eighth-largest NBFC in the country, with an AUM of Rs 913.7 bn.

It's also among the fastest-growing and most diversified HFCs in the country. The company offers a comprehensive suite of mortgage lending products.

It recorded the second-highest loan disbursement by HFCs in India, Rs 446.6 bn, in FY24.

While growing fast and being very profitable, the company has not compromised on the quality of its loan book. It boasts the lowest gross and net non-performing assets among large HFCs in India with a GNPA ratio of 0.3% and NNPA ratio of 0.1%.

Bajaj Housing Finance plans to expand its operations to reach more customers across India, especially in tier II and tier III cities.

Bajaj Housing Finance aims to leverage technology to improve customer experience, streamline operations, and reduce costs. It plans to invest in digital channels, online loan applications, and artificial intelligence-powered solutions.

For more details, see the Bajaj Housing Finance company fact sheet and quarterly results.

#5 Exicom Tele-Systems

Last on our list is Exicom Tele Systems.

Incorporated in 1994, Exicom Tele-Systems specialises in power systems, electric vehicle (EV) charging, and other related solutions. It has two business divisions, namely power systems and EV charging solutions.

The power systems vertical provides critical power business and delivers overall energy management at telecommunications sites and enterprise environments through power conversion systems ("DC Power Systems") and Li-ion-based energy storage solutions to deliver backup power during grid interruptions.

The company operates in the EV charger business, which offers both slow charging solutions (primarily AC chargers for residential use) and fast charging solutions (DC chargers for business and public charging networks in cities and highways).

Since its listing on 5 March 2024, the stock price has surged 130%, climbing from its issue price of Rs 142 to Rs 327.

This impressive rally can be attributed to the company's robust financial performance.

In FY24, revenue jumped 44% to Rs 10.2 bn, up from Rs 7.1 bn in FY23. Meanwhile, profit saw a significant increase, soaring from Rs 80 m last year to Rs 660 m in FY24.

The company also improved its gross margins by 2%, aided by a reduction in finance costs.

Segment-wise, its critical power business experienced a remarkable 59% growth, while its core business, EV charging grew by 11%, with revenue rising from Rs 2.2 bn to Rs 2.4 bn. The power business has shown a steep rise over the past three years.

The company's order book also grew, with Rs 11.1 bn worth of orders booked in FY24, compared to Rs 9.5 bn in FY23.

Exicom launched upgraded chargers for home use, the Spin Air series, and the Gen 1.5 Harmony DC fast chargers. Notably, the Gen 1.5 Harmony is India's fastest DC charger, designed to make EV charging seamless.

Exicom stands out as one of the few Indian companies offering a comprehensive range of AC and DC chargers, from 3.3 kW to 360 kW.

With a pan-India after-sales service network, the company has successfully deployed over 35,000 EV chargers across 400 locations, reinforcing its position as a key player in the country's EV infrastructure.

The company is currently investing in R&D for next-generation chargers and power conversion equipment.

It's also developing an integrated manufacturing complex in Hyderabad for all product lines.

For more details, see Exicom Tele-Systems 's financial factsheet and latest quarterly results.

Conclusion

Apart from the five stocks listed above Platinum Industries and Unicommerce eSolutions have also delivered multibagger returns.

While top-performing IPOs often attract attention due to their impressive initial returns, it's essential to approach these opportunities with caution. Just because an IPO has performed well in the short term doesn't guarantee future success.

IPO investments can be highly volatile, with early gains driven by market sentiment, speculation, or a temporary surge in demand.

Over time, the true financial health and growth potential of the company come to light, which may not always align with initial market enthusiasm.

For example, some IPOs that deliver strong early returns may face corrections once the hype fades, while others could continue growing if backed by solid fundamentals.

It's crucial to conduct thorough research before investing.

Analyse the company's business model, competitive positioning, management team, and long-term prospects.

Diversification is another key factor. Placing too much reliance on a single high-performing IPO could increase risk.

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...