5 multibaggers gave up to 8,000% return in 4 years, still hold long-term promise

By Jwalit Vyas & Harsh Kundaria

ET Intelligence Group: On Tuesday, the benchmark Nifty 50 closed at a record high of 9,512, yielding 54% return over the past four years since the current bull run started. While this is phenomenal, there are a few stocks outside of Nifty that have gained much more, as much as 80 times in some cases.ET Intelligence Group lists the top five performers among companies that currently have more than Rs 1,000 crore of market capitalisation. Some of these companies still look great on long-term horizon given their sound management teams and future prospects.

AVANTI FEEDS

Fortunes of this fish feed and shrimp exporter from Andhra Pradesh changed after the government cleared production of high yielding Vannamei shrimp in 2009 which has large markets in the US, Europe, South East Asia and West Asia. The company ramped up capacity allowing it to enjoy over 40% market share of the fish and shrimp feed industry . With the government's recent initiative to grow marine exports by 20%, Avanti finds itself in a sweet spot. In the March 2017 quarter, its net profit almost trebled year-on-year.The high growth momentum is likely to continue. The stock is available at 16 times expected FY18 earnings.

CAPLIN POINT LABS

At a time when most Indian pharmacy companies were highly focused on the US markets, Caplin ventured into relatively less explored markets of Latin America and Africa. After establishing a steady cash flow, the company gradually shifted from just being an exporter to having direct sales presence in these markets. Later, it set up plants targeting the US and the UK markets and widened its products portfolio by adding high margin products -from capsules, and oral drugs to injectibles and ophthalmic drugs. Its earnings grew at a five-year annualised rate of 65% in FY17 and doubled in the March quarter year-on-year. The stock is fairly valued at 28 times expected FY18 earnings.

TASTY BITE EATABLES

Erstwhile ready-to-eat foods company in the US market, TBE saw an opportunity in the growing Quick Service Restaurants (QSR) industry in India.In 2012, it gradually started supplying speciality sauces and frozen foods to QSRs such as McDonald's, Domino's Pizza and Subway . Its profit has grown from Rs 1.6 crore in FY12 to Rs 16 crore in FY16. In the first nine months of FY17, net profit was `15 crore. Factoring in high growth, the stock attracts premium valuation of 51 times expected FY18 earnings.

ASTEC LIFESCIENCES

In 2013, the agro-chemicals company entered into contract manufacturing for global firms. It also started selling its branded products in India. Its net profit rose from Rs 1.5 crore in FY12 to Rs 26 crore in FY17. In FY16, Godrej Agrovet acquired a controlling stake in Astec. In the March quarter, it reported a 78% earnings growth and the momentum is likely to continue in the current fiscal too. The stock is trading at 38x FY18E earnings.

INDO COUNT INDUSTRIES

The home textile exporter had entered into a loss-making currency derivative position in 2008 for which it paid until FY13. During that phase, it capitalised on the growing demand for home textiles in the US. After turning around the business between FY12 and FY16, the past two quarters have been difficult due to intense competition. Higher cotton prices, too, have put pressure on profitability . In the March quarter, its earnings fell 28% YoY. With stronger rupee, its exports are likely to remain under pressure.The stock is available at a PE of 17.