The Surge Stocks ; These Shares Registered the Handsomest Gains Over the Last One Year.

Business Today › November 17, 2006

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Summary

The empire is striking back. And how? New Economy is no longer the flavour in the menu of the India story. Fourteen of the top 25 gainers in market capitalisation (M-cap) in the list of Business Today's Top 500 companies are real estate and infrastructure companies. Brick and mortar, it seems, has become the alchemist's dream. Says Nilesh Shah, President, Kotak AMC: "The government has never been as serious about infrastructure development as it is now. The expectation of sustained earnings growth for companies in this space is driving the higher valuations." Among them, Unitech (up 2,190 per cent to Rs 14,786.5 crore) posted the highest gains, followed by Lok Housing & Construction (up 984 per cent to Rs 347 crore), Anant Raj Industries (up 767 per cent to Rs 1,826 crore), bf Utilities (up 723 per cent to Rs 6,306 crore) and Era Construction (up 469 per cent to Rs 597.5 crore).

But all the news isn't as bullish. Overall, the laggards (defined as companies whose shares underperformed the BSE Sensex) outnumbered the gainers in BT 500-267 companies lagged the Sensex, which recorded a 59 per cent rise in M-cap to Rs 14,02,575 crore, compared to Rs 8,84,195 crore in the first half of the previous year. Of these, 68 reported erosions in M-cap. Only 201 companies outperformed the Sensex; there were 32 new entrants.

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The Surge Stocks ; These Shares Registered the Handsomest Gains Over the Last One Year.

"The rally in the market is mainly driven by institutional capital; the large-cap companies have registered impressive performances, so there was no major compelling reason for the big investors to shift their focus to mid-caps and small-caps. That is primarily why losers outnumber the gainers," says Shah.

Larsen & Toubro (L&T) clocked the largest gains among the Top 10 companies in BT 500. The conglomerate's M-cap surged 114.5 per cent to Rs 33,149 crore from Rs 15,460 crore in the c...

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