More than 10 per cent (274) of the 2,575 actively-traded companies on BSE have surpassed their net profits of last year (2012-13) in just six months of this year (April-September 2013-14).
In return, the stock market has rewarded them handsomely, with the value of their stocks surging 45 per cent on an average since March.
The scrips of some of the better-known names, such as Tech Mahindra, Reliance Communications, Ceat, PVR, PI Industries and Suven Life Sciences have gone up nearly 50 per cent, while the benchmark Sensex has gained 11 per cent during this period.
Of these 274 companies, 10 belong to the S&P BSE mid-cap and 38 from the small-cap indices.
Together, they posted aggregate net profit of Rs 7,563 crore (Rs 75.63 billion) during the first half of this financial year, compared with Rs 5,970-crore (Rs 59.7 billion) combined profit during the entire 2012-13.
The companies in the sample had posted net profit of Rs 3,988 crore (Rs 39.88 billion) in the first six months of last year.
The earnings outperformers are from across sectors -- non-banking financial companies, textiles, pharmaceuticals, chemicals, information technology, fast-moving consumer goods, agro chemicals, packaging and tyres.
The stock of Ceat, for instance, has appreciated more than 150 per cent to Rs 236 from Rs 94 apiece on March 29 on BSE.
The tyre maker’s consolidated net profit for the first six months of this financial year saw a four-fold year-on-year jump to Rs 142 crore (Rs 1.42 billion), on the back of strong volume growth and lower raw material costs.
Analysts at Angel Broking maintain a positive view on the company and suggest it will continue to benefit from the strong traction in the two-wheeler and passenger vehicle tyres
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