Sensex performers in 2013: TCS surges 73 percent, Sun Pharma gains 54 percent

December 31, 2013

By Aditya Karla and Sankalp Phartiyal

The BSE Sensex ended 2013 with gains of 9 percent after hitting life highs during the year. The benchmark index touched an all-time high of 21,483.74 on Dec. 9 after falling to a 2013 low of 17,448.71 in August.

Foreign inflows boosted sentiment on the street even as concerns about a slowing economy and high inflation weighed. Foreign institutional investors (FIIs) bought a net $20.1 billion worth of Indian shares in the year. FIIs had bought $24.5 billion worth of stocks in 2012.

The sharp fall in the rupee and recovering U.S and European economies boosted export-driven sectors, helping shares in many IT and pharma companies rank among the top Sensex performers.

India’s three IT majors — TCS, Infosys and Wipro — were among the best Sensex performers of 2013 while SBI, BHEL and Coal India were the top losers.

Here is a list of gainers and losers of 2013:

GAINERS

TATA CONSULTANCY SERVICES (TCS): Shares of India’s top software services provider ended 2013 with smart gains. The stock surged almost 73 percent this year, outperforming the BSE IT index which gained 60 percent. Weakness in the rupee – which touched life lows and fell to nearly 70 before recovering — and an improving demand scenario aided sentiment.

“TCS remains confident of a solid demand environment. We believe TCS can sustain the gap in revenue growth and margins versus the industry,” Kotak Institutional Equities had said in a report on Dec. 17.

Analysts are bullish about the stock’s performance. Of the 54 analysts covering the stock, 39 have a buy or an equivalent rating while 11 have a hold, data from Thomson Reuters showed. Only 4 analysts have a sell rating on the stock.

WIPRO: Shares in Wipro emerged as the second best Sensex performer in 2013 with a return of 61 percent, as the entire IT pack rallied. The stock fell to as low as 315.30 rupees in May, but recovered and touched a life high of 561.25 rupees on the last trading day of 2013.

The company, which has restructured itself over the past two years to catch up with competitors, set a revenue growth forecast for the quarter ending December at 1.8-3.6 percent in dollar terms, slightly above analysts’ forecast.

SUN PHARMA: Shares in the pharmaceutical company surged 54.4 percent this year, outperforming a 22.6 percent gain in the BSE healthcare index. The stock lost 4 percent in the December quarter but still managed to post annual gains, extending the good run after rising 48 percent in 2012.

The company, which is India’s top drugmaker by market value, in November raised its consolidated revenue growth outlook for the fiscal year ending March 2014 to 25 percent from 18 to 20 percent. “The performance of all our businesses exceeded our plans. We continue to develop a differentiated and specialty driven product basket,” Managing Director Dilip Shanghvi had said.

INFOSYS: Like other IT stocks, Infosys too posted gains in 2013, ending 50.3 percent higher. The stock, which had lost more than 16 percent in 2012, hit a life high of 3,575 rupees on Dec. 30.

It was an eventful year for Infosys, which brought back founder and former chairman Narayana Murthy in June after disappointing results and a loss of market share. Murthy’s return was followed by the departure of key executives, including its Americas head and global manufacturing chief, Ashok Vemuri, and recently V. Balakrishnan, the head of several units including business process outsourcing.

The company’s refocus on big-ticket contracts since Murthy’s return began to pay off as it crossed $2 billion in quarterly sales for the first time in the September quarter. It also pushed up its revenue outlook.

“We maintain sell on Infosys as we see challenges with sales attrition and client losses as it struggles to reposition itself,” Centrum said in a report on Dec. 31. Still, of the 40 analysts covering the stock, 37 have a buy or equivalent rating, data showed.

DR. REDDY’S: The stock made it to the list of top five Sensex performers of 2013, gaining 38.5 percent this year. Dr. Reddy’s touched its life high of 2,554 rupees on Dec. 26.

In September, the company received the U.S. drug regulator’s approval for selling its generic version of an anti-cancer drug by Celgene Corp’s. Vidaza, the anti-cancer drug, generated sales of $378.5 million in the United States in the 12 months through July.

Of the 39 analysts covering the stock, 33 have a buy or equivalent rating while six have a hold rating, data showed. In a research note dated Nov. 28, JP Morgan had said the import alert issued by the USFDA on Wockhardt’s Chikalthana unit should help Dr. Reddy’s. The brokerage remains overweight on the stock with a target price of 2,800 rupees.

Sensex losers in 2013: Shares in State Bank of India, India’s largest lender, fell nearly 26 percent in 2013, ending the year as the top Sensex loser. The BSE banking index slipped 9.3 percent in the year. Among other losers, BHEL dropped 22.7 percent, Coal India ended down 18 percent, while Tata Power shed 17.2 percent. NTPC ended the year with losses of 12.6 percent.

(Editing by Tony Tharakan. Follow Aditya on Twitter @adityayk, Sankalp @sankalp_sp and Tony @TonyTharakan | Disclaimer: This article is website-exclusive and cannot be reproduced in any form without permission)

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