No
investor would like to be reminded of 2001. It was the year when
if you wanted to dabble in stocks you could just as well have given
away your money. The Sensex plunged 17.5 per cent, from 3,955.08
(January 1, 2001) to 3,262.33 (December 31, 2001). Not an exciting
year to have invested in stocks, right? Wrong. If you'd picked the
15 cherries we're going to talk about, you could have easily been
that elusive creature, a Master of the Universe.
If by a stroke of genius you'd plonked Rs 10,000
in shares of the state-managed IBP, it would have been worth Rs
28,000 by the year-end. And you could crack open a Veuve Cliquot
on the New Year's eve.
Yes, we know you probably didn't do anything
of that sort. So to just make those grapes seem a little more sour,
we are profiling 15 stocks that could have made you a winner last
year.
1 IBP
This was the top performer of 2001. Opening the year at Rs 145,
IBP, whose marketing network is the cynosure of entrants like Reliance
Petroleum, closed at Rs 408. With the government planning to disinvest,
interest in the stock remained high.
2 INFOTECH
ENTERPRISE
The story behind this obscure company is not known to many. It is
a supplier of GIS solutions, business software; and internet development
services. Its scale-up operation and product diversification did
the trick. Point to note, however, is Infotech's small capital base
of Rs 6.1 crore.
3 BAJAJ
AUTO
With a 65 per cent return, Bajaj Auto was one of the biggest gainers
amongst older auto companies. Though overtaken by rival Hero Honda,
its comeback strategy earned plaudits. ''Bajaj Auto in 2001, was
a turnaround story. Cost-cutting and new models worked to its gain,''
says Abhay Kantak, Research Analyst, Motilal Oswal.
4 ASHOK
LEYLAND
Ditto for Ashok Leyland. While rival Telco grappled with its passenger
car Indica's mixed fortunes, the second-largest truckmaker surged
ahead on back of its mid-sized commercial vehicles. Compared to
Telco's blues (second-quarter losses were Rs 61.8 crore), Ashok
Leyland was on a high (second quarter profits were 18.5 crore).
''It has a well-diversified topline with almost equal cyclical and
non-cyclical business. So, in a downturn, Ashok Leyland has always
scored over Telco,'' says Govind Rajan, Auto Analyst, Motilal Oswal.
5 BHARAT
PETROLEUM
BPCL's customer-orientation earned plaudits from the bourses. With
the proposed dismantling of APM, investors were attracted by its
marketing strengths.
6 HERO
HONDA MOTORS
Hero Honda won the two-wheeler sweepstakes last year and that's
why it's on our list. However, Bajaj Auto is higher up returning
65 per cent to Hero Honda's 46. Still, if you had backed either
of these horses, you'd have little to complain about.
7 CMC
The company's sale to the TCS gave this public sector slowpoke the
leg up it needed. Its shares perked up 45 per cent. ''Being put
on the block was its biggest plus-point. It was re-rated since TCS
can benefit a lot from CMC's client-profile,'' says Jigar Shah,
Head (Research), KR Choksey.
8 CORPORATION
BANK
The only bank on our list, Corporation Bank stocks returned a handsome
44.89 per cent thanks to the alliance with LIC. The bank's surplus
funds will also be invested by the LIC. ''While the alliance will
help this bank go retail, it has also done well in terms of a proactive
management, good accounting norms and NPA provisions,'' says Shah
of KR Choksey.
9 DR.
REDDY'S LABS
Dr Reddy's is one of stars of the Indian pharma firmament and last
year it provided investors with a 44.32 per cent return. DRL's strength
lies in basic research, but the uncertainties involved were made
clear when it lost a case in the US, raising questions about its
growth prospects.
10 E-SERVE
This Citibank associate performed well due to assured business from
the parent, giving a return of 41.17 per cent. Its focus is on it-enabled
financial services, with expertise in processing and customer-care
solutions. e-Serve saw growth in 2001 on the back of the scale-up
operation in the past three years.
11 HDFC
At number 11, HDFC closed the year with gains of 23.14 per cent
in its 25th year of operation. Thanks to the lower interest rates
and tax incentives in the housing sector, retail growth continued.
The company added a network of offices, intensified marketing efforts
and offered a special discount on fees in the quarter-ended December
2001.
12 PHILIPS
The electronics major's stock ruled steady, giving a return of 21.78
per cent chiefly because of the parent's interest in taking over
the company and de-listing it. The parent has already made an open
offer to buy 17.1 per cent stake from the minority shareholders
at Rs 105 per share.
13 TATA
POWER
Tata Power ended the year with a 19.43 per cent gain due to a combination
of factors. One, the power sector is being seen as safe, and two,
the company is planning to invest Rs 880 crore in broadband over
the next couple of years.
14 GUJARAT
AMBUJA CEMENTS
Successive price increases ensured that cement stocks had top-of-the-mind
recall with investors. Successful cartelisation gave a boost to
its profitability and the coming quarters will be even better for
the stock. It gave a return of 18 per cent.
15 MOSER-BAER
A computer peripherals company scaled up capacity in the last couple
of years. Its performance finally started showing in 2001. The company
closed the year with a gain of 17.61 per cent.
So did you catch the bus last year or miss
it? As they say, in hindsight, everything looks so easy. Meanwhile,
here's wishing you all the luck in 2002. Yes, and we'll see how
you fare next January.
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