Top 10 Retail Investor Multibaggers in FY24: 100-400% Returns

Multibaggers

Multibagger Mania: 10 Retail Investor Favorites That Soared in FY24

The Indian stock market witnessed a phenomenal year in FY24. The benchmark Nifty index surged by a noteworthy 30%, while the broader mid-cap and small-cap indices skyrocketed by a staggering 70%.

This market upswing fueled the rise of numerous “multibagger” stocks – companies whose share price multiplied several times over. Retail investors, a growing force in the market, played a significant role in propelling these stocks to new heights.

This article dives deep into 10 such multibagger stocks that were particularly popular among retail investors in FY24, all delivering returns exceeding 100%. We’ll explore the companies, their performance, and the factors that likely contributed to their success.

1. IRFC: The Champion of Growth (435% Rise)

Indian Railways Finance Corporation (IRFC) emerged as the undisputed champion in terms of growth, witnessing a staggering 435% surge in its share price during FY24.

This impressive performance attracted a massive retail investor base, with a whopping 32 lakh (3.2 million) individuals holding a combined 138 crore (1.38 billion) shares, representing a total value of Rs 19,500 crore (US$2.4 billion) as of the last closing.

IRFC’s dominant position in the railway financing sector and its robust financial performance likely contributed to this surge in investor confidence.

2. Suzlon Energy: Wind Power Takes Flight (412% Rise)

Suzlon Energy, a leading player in the wind turbine industry, witnessed a remarkable 412% growth in its share price in FY24.

This upswing reflects the growing optimism surrounding the renewable energy sector in India. With over 34 lakh (3.4 million) retail investors holding 579 crore (5.79 billion) shares, with a current value of Rs 23,462 crore (US$2.9 billion), Suzlon’s success story resonated strongly with individual investors.

Analysts remain bullish on the company, further raising their target price due to anticipated growth in the Indian wind turbine market.

3. Zomato: A Foodie Delight (258% Rise)

Zomato, the popular online food delivery platform, continued its growth trajectory in FY24, with its share price surging by 258%.

This rise in share price reflects the increasing popularity of online food delivery services in India. Zomato’s growing user base and potential for further expansion likely attracted a significant number of retail investors, with around 17 lakh (1.7 million) individuals holding 63.34 crore (633.4 million) shares, with a current value of Rs 11,550 crore (US$1.4 billion).

4. Reliance Power: A Brighter Future (184% Rise)

Reliance Power, a leading player in the power sector, saw its share price increase by a significant 184% in FY24. This growth likely reflects investor confidence in the company’s ambitious plans to become debt-free by FY24.

As of the last closing, 35 lakh (3.5 million) retail investors held approximately 202 crore (2.02 billion) shares worth Rs 5,711 crore (US$703 million). Reliance Power’s focus on renewable energy and its potential for future growth may have also been factors in its success.

5. Jaiprakash Power Ventures: Repowering for Success (175% Rise)

Jaiprakash Power Ventures (JPVL) staged a remarkable comeback in FY24, with its share price rising by 175%. This impressive return comes after JPVL significantly reduced its debt burden, from Rs 11,150 crore (US$1.4 billion) in FY19 to Rs 4,754 crore (US$587 million) by FY23.

This improved financial health likely attracted retail investors, with 17.55 lakh (1.75 million) individuals holding over 256 crore (2.56 billion) shares worth Rs 3,915 crore (US$480 million) as of the last closing.

Beyond the Top 5: Promising Players Attract Retail Attention

The remaining five companies on our list represent a diverse range of sectors that captured the attention of retail investors in FY24.

1. Punjab National Bank (166% Rise): This PSU bank’s impressive growth may be attributed to a perception among analysts that PSU banks are undervalued compared to private banks. Around 21.30 lakh (2.13 million) retail shareholders held around 96.46 lakh (964.6 million) shares, with a value of approximately Rs 12,000 crore (US$1.5 billion).

2. Tata Motors (136% Rise): A well-established automobile manufacturer, Tata Motors’ strong brand presence and potential for future growth in the electric vehicle segment likely contributed to its share price rise. Around 41 lakh (4.1 million) retail shareholders held 51.33 crore (513.3 million) shares, valued at Rs 50,972 crore (US$6.2 billion) as of the closing.

3. Vodafone Idea (128% Rise): Despite its past struggles, Vodafone Idea’s share price surged in FY24, likely due to expectations of fresh funding from promoters and other fundraising plans. Around 31 lakh (3.1 million) investors now hold 456.54 crore (4.56 billion) shares, with a value of Rs 6,044 crore (US$741 million).

4. Indian Oil Corporation (115% Rise): This state-owned oil giant benefitted from rising oil prices in FY24. Currently, 20.32 lakh (2.03 million) retail investors hold 95.3 crore (953 million) shares, with a value of Rs 16,000 crore (US$2 billion).

5. Tata Power Company Ltd (107% Rise): A leading power utility company, Tata Power’s focus on renewable energy and potential for expansion likely resonated with investors. Around 39.28 lakh (3.93 million) retail shareholders hold around 75.52 crore (755.2 million) shares, valued at approximately Rs 30,000 crore (US$3.7 billion).

Factors Contributing to Retail Investor Interest in Multibaggers

Several factors likely contributed to the surge in retail investor interest in these multibagger stocks during FY24:

• Market Rally: The overall bullishness of the Indian stock market instilled confidence in retail investors, encouraging them to take greater risks.

• Increased Awareness and Information Access: The rise of online trading platforms and financial literacy initiatives has made it easier for retail investors to research and invest in stocks.

• Focus on Long-Term Growth: Many retail investors are looking for long-term wealth creation opportunities, and multibagger stocks with high growth potential can be attractive in this regard.

• Social Media and Investment Trends: Social media and online forums can significantly influence investor sentiment, with discussions about high-performing stocks attracting new investors.

Final Thoughts

FY24 proved to be a rewarding year for retail investors in India, with several stocks delivering exceptional returns.

While past performance is not necessarily indicative of future results, the companies mentioned above represent some of the most popular multibaggers among retail investors.

It’s important to remember that investing in the stock market carries inherent risks, and investors should always conduct thorough research and due diligence before making any investment decisions.