Last week, bellwether indices Nifty and Sensex gained nearly 2.3 per cent each driven by optimism around the strong GDP growth of India and inflows of foreign capital. Nearly all sectoral indices ended in green during the week with the highest gains posted by BSE Oil & Gas (5.8 per cent), BSE Power (5.7 per cent) and BSE PSU (4.7 per cent).
In this column, we spotlight the three best-performing stocks every week. Last week, the three stocks that gained the most in the BSE 500 linked to some fundamental news were Adani Total Gas (31 per cent), Aster DM Healthcare (19 per cent), and PFC (16 per cent).
Adani Total Gas
During last week, Adani Total Gas was the biggest gainer within the BSE500 index stocks after the Supreme Court reserved its judgement in the Adani-Hindenberg case.
The Chief Justice of India DY Chandrachud, leading a bench, stated that the Supreme Court cannot cast doubt on the Securities and Exchange Board of India’s (Sebi) investigation into the case solely based on information from media reports. He further noted that ‘we do not have to consider the Hindenburg report as an ipso facto determination of facts. We don’t have to stick to the Hinderburg report as it is and don’t know the veracity of the report, and that is why we asked SEBI to investigate the matter.’
Besides the above development, the company’s announcement on starting a pilot project on green hydrogen production and blending also supported its share price.
Adani Total Gas produces and distributes industrial and compressed natural gas (CNG) to commercial, residential and transport sectors in India.
The stock is trading at a trailing P/E of around 134 times.
Aster DM Healthcare
The stock of Aster DM Healthcare shot up by around 19 per cent during the last week on the back of plans of splitting its India and Gulf business.
Aster DM Healthcare Ltd provides health care services and operates hospitals, medical centres, diagnostic centres, laboratories and pharmacies. The company has announced a complete sale of its GCC business at an enterprise value of ₹13,540 crore. A consortium led by United Arab Emirates (UAE) government-backed Fajr Capital will own 65 per cent of the Gulf entity, while Azad Moopen, the promoter of Aster, will own 35 per cent, once the transaction is concluded. The street has been cheering post the announcement of the deal as it believes the deal to be value-unlocking for the company.
The stock is trading at a trailing P/E of around 101 times.
The stock of Power Finance Corporation (PFC) surged by around 16 per cent during the last week driven by formation of a transmission based special purpose vehicle (SPV).
Power Finance Corporation provides financing facilities to state and central power utilities, private power sector utilities, joint sector power utilities and power equipment manufacturers.
PFC’s wholly owned subsidiary PFC Consulting has formed an SPV namely Paradeep Transmission which has been incorporated as a wholly-owned subsidiary of PFC Consulting. This was the result of PFC Consulting Limited being nominated as the bid process coordinator (BPC) for selection of developer through tariff-based competitive bidding.
The stock is trading at a P/B of 2.52 times.