Low stock price, high returns: IFCI to NHPC have gained up to 100% in 2024

Benchmark equity indices SENSEX and NIFTY have gained around 5% in 2024 so far. Amid a recent rally in key indices, a few low-priced stocks, which often remain under the radar of retail investors, have given handsome returns so far this year (year-to-date).

An analysis of companies, with stock prices up to ₹100 per share and market capitalisation of more than ₹5,000 crore, shows that at least five companies have given returns between 50% and 100% so far in 2024. The list is topped by state-run IFCI Ltd, which has rallied around 100% since the beginning of the year, January 1, 2024.

IFCI Ltd (CMP: ₹57, YTD return: 96.4%)

State-run financier IDFC Ltd shares have rallied more than 96% this year, so far. Robust stock performance was mainly driven by upbeat financial performance, capital infusion by the government and a rise in FII holding.

The non-banking finance company started 2024 on a high note driven by financial performance, capital infusion by the government and a rise in FII holding.

FIIs also increased the stake to 2.29% in the March quarter from 2.08% in the December quarter.

Read more: IFCI shares gain over 29% this month, Here’s why

IRB Infrastructure Developers (CMP: ₹71.5, YTD return: 72.3%)

IRB Infra shares have gained from the company’s increasing market share in the toll-operate-transfer (TOT) space. It has around 38% market share in the TOT space which was the largest of any private player in the sector.

The company reported a 45% rise in net profit for the March quarter to ₹188.9 crore compared to the year-ago period. Its revenue from operations was 27% higher at ₹2,061 crore in the quarter under review.

The government’s focus on infrastructure development, especially on the highways and road segment, has given growth opportunities for the company. The company had more than ₹10,000 crore executable order book for the next two years.

Indian Overseas Bank (CMP: ₹71.1, YTD return: 63%)

The bank reported a strong 24% growth in net profit at ₹808.1 crore for the January-March quarter of FY 2023-24 driven by lower provisions for bad loans and increase in core income.

NHPC Ltd (CMP: ₹100.2, YTD return: 55.1%)

Higher budgetary allocation by the government to NHPC, from ₹9,006 crore for FY24 to ₹11,761 crore for FY25, was also one of the factors that boosted the share price. Besides, the company has bagged solar projects in Gujarat and Rajasthan.

Bank of Maharashtra (CMP: ₹69, YTD return: 52.3%)

The state-run bank reported a 45% jump in net profit to ₹1,217.7 crore for the March quarter of FY24 compared to ₹840 crore in the March quarter of FY23. The bank reported an 18.2% growth in net interest income (NII) to ₹2,584 crore in the March quarter of FY24 from ₹2,187 crore in the year-ago period. The bank had reported a robust growth on net profit and NII for the December quarter of FY24 as well.

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