Beta is a measure of a stock’s volatility and a value above is considered to be highly volatile.
Trent is the top performer from the pack with returns of 213% in 1 year and riding on a beta of 0.70 according to data fetched from Ace Equities. Meanwhile, food delivery platform Zomato and the two-wheeler company Bajaj Auto yielded 162% and 107%, respectively, in the period with one-year beta of 0.78 and 0.42, respectively.
The highest volatility has been displayed by Power Finance Corporation (PFC) at 2.2, followed by GAIL (India), Bharat Electronics (BEL) with a beta of 1.75 and 1.68, respectively. The returns by the three counters are 188%, 105% and 154% in the same order.
Defence PSU stock Hindustan Aeronautics (HAL) and state-run miner Coal India have reported a one-year beta of 1.52 and 1.41, respectively, even as their returns stand at an impressive 177% and 111%, respectively.Bharat Forge and Mahindra & Mahindra are also among the stocks with multibagger returns but not without a trade-off with volatility. Their returns were 120% and 109%, respectively, with volatility in the last one year measured at 1.17 and 1.10 in that order.
The BSE 100 index has rallied 29% in the past 12 months.
Excluding the mentioned stocks, 35 largecaps from the index have traded with a beta higher than one in the last one year. Of these, 24 have outperformed the index with Tata Power Company, Siemens, Varun Beverages, Adani Ports and Special Economic Zone (APSEZ) and NTPC delivering returns between 98% and 90%. Their beta varied between 1.47 and 1.60.
At the bottom of the pyramid are The Federal Bank, Ashok Leyland, Bank Of Baroda (BoB), Adani Enterprises and Ultratech Cement whose returns were between 45% and 32% and superior to the BSE 100 index.
Meanwhile, 55 stocks traded with a beta lower than one in one year and their returns were in the range of 96% and negative 18%. Varun Beverages and Hero MotoCorp gave over 90% returns with a beta around 0.5, each.
There were also stocks who performed badly despite high beta, like HDFC Bank, IDFC First Bank and Bajaj Finance. Their returns were flat though positive while beta in excess of 1.
Zee Entertainment Enterprises (ZEEL) and UPL saw their share prices erode by 14% and 17%, respectively, with beta of 1.45 and 1.19% in that order.
In the BSE 100 index, a total of 10 stocks have seen their prices decline on a year-on-year basis, irrespective of the volatility figures.
(Data Inputs: Ritesh Presswala)
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Content Source: economictimes.indiatimes.com