Low stock price, high returns: Suzlon Energy, MIC Electronics, and others have gained up to 132% in 2024

Indian stock market benchmarks - NIFTY50 and SENSEX, have registered strong gains in this calendar year, with 13% and 11.28% gains, respectively, on a year-to-date (YTD) basis. This is despite the volatility due to domestic and global factors.

Here’s a list of four stocks under ₹100 that have been delivering stellar performances in 2024 (YTD basis). From Electronics to power generation, these companies are seeing significant growth, making them attractive to investors.

(Source - Screener and NSE)

Suzlon Energy Ltd (YTD return: 110%)

In its Q1FY25 earnings report, revenue increased by 50% YoY to ₹2,016 crore, EBITDA rose by 86% YoY to ₹370 crore, and net profit jumped 200% YoY to ₹302 crore.

During Q1, the company delivered 274 Mega Watt (MW) of capacity, the highest in seven years, and reported its highest quarterly EBITDA in seven years at ₹370 crore. It also achieved its largest-ever order book of 3.8 Giga Watt (GW) in its 29-year history, with a net cash position of ₹1,197 crore as of June 2024.

Suzlon's financial health has significantly improved, with a notable reduction in debt. With a compounded profit growth rate of 20% over the last five years and a robust order book, the company has strong revenue visibility, which is driving investor confidence.

RattanIndia Power Ltd (YTD return: 68%)

In Q1FY25, the company’s net profit jumped to ₹93 crore, compared to a loss of ₹549 crore in the same quarter last year. Revenue increased by 10% YoY to ₹932 crore, EBITDA grew by 20.3% YoY to ₹188.57 crore, and the EBITDA margin increased to 20.2% from 18.5% in Q1FY24.

Operationally, during Q1, the company witnessed continuous improvement in its Plant Load Factor (PLF), achieving the highest-ever PLF of 82.29% at its Amravati plant. The company also recorded its highest-ever coal rake deliveries, with 1,645 units received and unloaded.

Rising investor interest in RattanIndia Power is due to increasing power consumption, strong operational performance, and ongoing debt reduction efforts. These factors make the company a promising player in the power sector.

PC Jeweller Ltd (YTD return: 95%)

In its Q1FY25 earnings report, revenue jumped by ₹401 crore, marking a 498% YoY increase. EBITDA increased to ₹89 crore, compared to a negative EBITDA of ₹42 crore in the same quarter last year. The company reported a profit of ₹155 crore against a loss of ₹173 crore in the same quarter last year.

Q1 was a turnaround quarter with exponential growth in both topline and profitability. The company submitted an Offer for Settlement (OTS) to its lenders and gained in-principle approval from a consortium of 14 banks. Additionally, shareholders approved a ₹2,705.14 crore fundraising via convertible warrants, and the State Bank of India (Lead Bank) filed to withdraw its NCLT petition for insolvency proceedings during Q1.

Investors are drawn to PC Jeweller due to its financial turnaround, settlement talks with lenders, and fundraising initiatives. These positive developments have boosted sentiment around the once debt-ridden company.

MIC Electronics Ltd (YTD return: 132%)

In Q1FY25, total income increased to ₹10.71 crore, reflecting 29.72% YoY growth. Operating profit grew by 42.37% YoY to ₹2.21 crore, profit after tax jumped 58.48% YoY to ₹1.97 crore, and the operating margin increased to 20.60% from 9.76% in the previous year.

The Q1 earnings report highlighted strong revenue growth driven by increased sales, improved profitability with EBITDA margin expansion, and a significant surge in net profit driven by operational efficiency.

MIC Electronics' focus on reinvesting in its business has resulted in impressive earnings growth, with a compounded profit growth rate of 32% over the last five years. The company’s strong financial performance underscores its potential to capitalise on opportunities in the electric equipment manufacturing industry.

Conclusion

These stocks have not only delivered impressive year-to-date returns but also demonstrated strong financial growth and operational excellence. With strategic initiatives and positive market sentiment, they continue to attract investor attention, making them stocks to watch in 2024.