Top And Worst Performing Stocks In India

Indian stock markets have been performing exceptionally well, and 2024 has been a remarkable year for them. They have outpaced many global markets, including NASDAQ, which is known for its tech-heavy growth stocks. With NIFTY and SENSEX outperforming markets worldwide, numerous winners have emerged as the best-performing stocks of 2024, while some companies failed to participate in the rally, becoming the worst-performing stocks of 2024.

This article aims to provide insights into the top-performing stocks and worst-performing stocks in India for 2024. Its primary purpose is to highlight that markets can significantly influence stock performance; even major companies can struggle if the market does not support them. Therefore, it is essential for investors to conduct thorough research and due diligence before investing in any stocks. Everyone wants to profit by investing in top-performing stocks and avoid laggards that fail to join the rally, ultimately resulting in worst-performing stocks.

• 2024 has been a strong year for the Indian stock market, with many stocks delivering solid returns.
• Cochin Shipyard, Aegis Logistics, and Hitachi Energy were top performers, driven by growth and government contracts.
• UPL, GMR Infrastructure, and NDTV underperformed due to financial and operational challenges.
• Investors should research carefully to spot top-performing stocks and avoid underperformers.

Here are the 3 best-performing stocks of 2024:

Cochin Shipyard

Cochin Shipyard, a government-owned entity, is India's largest public-sector shipyard by capacity. Its stock surged by 294% in 2024, as of July 4, based on performance through the June quarter. Although classified as a commercial shipyard, the majority of its revenue stems from building and repairing defence vessels, making it a key player in India's defence manufacturing sector. With an order book worth Rs. 215 billion as of June 18, 2024, Cochin Shipyard is among the top 10 defence stocks by order value. The company is expanding its shipbuilding and repair operations, including constructing a new dry dock, a 600-ton gantry crane, and a modernised facility in West Bengal, along with enhancing its international ship repair capabilities in Cochin.

Aegis Logistics

Aegis Logistics imports, stores, and distributes LPG, chemicals, and vegetable oils. Its EBITDA rose 51% YoY to Rs. 3.1 billion, driven by a 105% YoY increase in its liquids division. The company has major expansion plans, including new storage capacities at Kandla, JNPT, and Kochi by FY25. Two cryogenic LPG projects at Pipavav and Mangalore are also on schedule. With a large fleet and infrastructure, Aegis is positioned to meet the growing demand for liquid and LPG imports. Shares surged 155% in 2024, as of the last quarter ending June 30, with a market price of Rs. 745 on September 27.

Hitachi Energy

Hitachi Energy India was formed after ABB India's power grid business demerged, offering products, systems, software, and services across the power sector. Its portfolio includes high-voltage transformers, grid automation, and power quality products. As of July 4, 2024, shares surged 152%, taking into account the performance of the last quarter ending June 30 2024, with a market price of Rs. 13,435 as on September 27. This growth is largely due to securing a Rs. 7.9 billion order from Hitachi Energy Australia for the Marinus Link project, a key HVDC link between Tasmania and Victoria. The order will be executed over four years, with Hitachi Energy India playing a vital role.

Let us explore the popular worst-performing stocks now:

UPL

UPL operates in agrochemicals, industrial chemicals, speciality chemicals, and seed production. However, the company's weak participation in the 2024 rally is due to its low-interest coverage ratio, a return on equity of 8.55% over the last three years, and a low return on capital employed (ROCE) of 3.29%. This is the reason why UPL is the worst-performing stock of 2024.

GMR Infrastructure

GMR Infrastructure focuses on airport development, power generation, coal mining, highways, special economic zones, and EPC contracting. Its low-interest coverage ratio, promoters pledging 27.7% of their holdings, and a modest ROCE of 6.41% have contributed to its underperformance, making it one of the worst-performing stocks of 2024.

NDTV

New Delhi Television Limited (NDTV) operates three channels—NDTV 24x7, NDTV India, and NDTV Profit—and has expanded into digital content and e-commerce through its subsidiaries. Its underperformance is likely due to a low-interest coverage ratio, a 5% decrease in promoter holding last quarter, poor sales growth of -1.48% over the past five years, and a return on equity of 13.4% over the last three years. Hence, NDTV, a very popular news channel in India, figures in our list of worst-performing stocks of 2024.

Despite the strong performance of the Indian stock market in 2024, not all stocks participate in market rallies or benefit from the surge. Companies like Cochin Shipyard, Aegis Logistics, and Hitachi Energy benefited from high demand and strategic growth, creating wealth for investors. On the other hand, UPL, GMR Infrastructure, and NDTV did not perform in line with the market due to poor financials and market challenges. This contrast underscores the importance of thorough research and analysis. Investors should go beyond market trends and evaluate each company's fundamentals to make informed investment choices.