MNC stocks have provided 100% returns
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updated on 14 Oct 2016
Stocks of over half of the BSE-listed foreign-owned firms generated more than 100 per cent return in last five years. In one such stocks, an initial investment of Rs 1.7 lakh could have turned an investor crorepati in the same period,
According to data from corporate database Capitaline, 73 of the 139 stocks, where foreign promoter holding is in excess of 50 per cent, jumped between 100 per cent and a jaw-dropping 5,851 per cent over the past five years.
These stocks are from different sectors, including shipping and logistics, white goods, auto and auto ancillary, FMCG and cement, among others.
Plastic products manufacturer Kingfa Science & Technology has seen its stock skyrocket 59 times, or 5,851 per cent, to Rs 1,093.75 as of Friday from Rs 18.38 apiece on October 12, 2011. Foreign promoters held 74.99 per cent stake in the company at the end of June quarter.
Had an investor bought 9,143 Kingfa Science shares in 2011 for a total cost of Rs 1.68 lakh, he would have become a crorepati by now. IT consultancy stock SQS India BFSI has zoomed to Rs 823.85 apiece from Rs 38 five years, registering a 2,068 per cent or 21.68 times growth over this period. Foreign promoters held 53.95 per cent stake in the firm as of June 30.
MNCs are generally known for good dividend policy, as these subsidiaries of foreign parent firms repatriate funds in the form of dividends to their parents abroad. They are well-capitalised and have low debt exposure. They are known for strong global parentage, technological proficiency and asset-light models.