These Multibagger Stocks Surged up to 500% in 2022. What’s Driving
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2021 was a year of record highs for Sensex and Nifty, the year of initial public offerings (IPO) when retail investors rushed to join the frenzy.
Although the IPO market is expected to be as rosy as 2021, the sentiment has soured globally amid geopolitical concerns, and concerns regarding Fed rate hike. This has made investors nervous.
But at a time when the market has turned weak, several stocks from the microcap and smallcap space have turned multibaggers since the start of the calendar year 2022.
You read that right. In just around 30 trading session, some of these stocks have rallied a massive 500%.
Let’s take a look…
#1 KIFS Financial Services
The stock which commands the top position in multibagger stocks of 2022 list is non-banking financial company (NBFC) KIFS Financial Services.
Stock of the company has been on a continuous roll, gaining 5% each consecutive day starting 31 December 2021.
That’s 30 consecutive sessions of 5% gains.
So far this year, it’s up a massive 500%. The company’s share price chart will surely make you wonder – what’s driving this stock after a lull 2021?
Massive Surge in KIFS Financial Services
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When BSE sought clarification on the sharp rise, here’s what the company replied in an exchange filing last month:
The up and down movement of pricing at stock exchange is nothing related to the information or decision taken by the company. It seems purely a speculation at market trading, which has nothing related to the company or its promoters.
As you can see, there aren’t any developments behind the sharp 500% rally, which has left market observers puzzled.
There’s nothing to write home about on the company’s financials front too, except increased sales and massive jump in free cash flow.
Financial Snapshot
| ( ₹m Standalone) | FY17 | FY18 | FY19 | FY20 | FY21 |
| Net Sales |
84.9 |
60.5 |
59.0 |
156.0 |
210.4 |
| Sales Growth (%) |
19% |
-29% |
-3% |
164% |
35% |
| Net Profit |
33.5 |
30.0 |
28.2 |
39.4 |
37.9 |
| Profit Margin (%) |
40% |
50% |
48% |
25% |
18% |
| Free Cash Flow |
25.8 |
13.9 |
3.3 |
18.7 |
314.3 |
Source: Equitymaster
Even in weak markets, when benchmark indices Sensex and Nifty plunge, shares of KIFS Financial Services hit the upper circuit band.
What does the company do? It offers capital market products like margin trading, loan against shares (LAS) and funding primary market issues for the retail investors.
It’s part of the Khandwala group and is a subsidiary of KIFS Commercial Private, a proprietary trading entity of the group.
The Khandwala group has an established presence of more than 30 years across…
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