How listed Gujarat firms fared under Narendra Modi's rule

Written By Unknown on Rabu, 19 Desember 2012 | 16.02

Riken Mehta & Sagar Salvi
Moneycontrol.com

Gujarat CM Narendra Modi, popularly known as 'NaMo', has emerged one of the country's most prolific politicians. Modi has become the favourite poster boy for India Inc because of his industry friendly policies and no nonsense attitude while doing business.

Billionaire investor Rakesh Jhunjhunwala, in an recent interview, said that the next bull run can be triggered in 2014 if a Modi-led BJP comes into power. Be it Reliance Jamnagar's refinery woes or Tatas Singur debacle, Gujarat has now emerged as preferred investment destination for giant corporate houses. The latest entrant to the state is Maruti. The Gujarat poll results will be out on Thursday, however, exit polls have already suggested a thumping victory for Modi.

During his first tenure (2002-2007), if an investor would have invested in 22 prominent companies based in Gujarat, his or her portfolio would have generated a whopping 3123% return.

Comparatively, during his second tenure, the returns have been muted, mostly because of the overall slowdown which started in 2007. However, investors still made a more than decent 22% return—better than benchmark index in the same period. If one would have invested in all 27 listed Gujarat-based companies since 2002, your portfolio would have made a staggering 2011 percent return.

Let's see how Gujarat based stocks have performed in his regime


Stocks % Return in tenure1 % Return in tenure2 % Return in tenure 1-2
GHCL

854


-77


118


Mundra Port

-


-31


-


Gujarat Narmada


510


-56


168


GSFC


935


27


1209


Gujarat State Petronet 


-


-16


-


Gujarat Alkali


822


-39


463


Welspun India 


325


-40


154


Adani Enterprise  


6006


-37


3726


Adani Power


-


-36


-


Adani Ports


-


-33


-


Sun Pharma 


697


212


2388


Gujarat Apollo


954


-39


538


Gujarat Ambuja Exports


3563


-62


1286


Torrent Power


140


6


153


Torrent Pharma


286


239


1207


Torrent Cables


190


503


1651


Aarvee Denim


769


-19


606


Alembic 


795


-83


53


Alembic Pharma


-


50


-


Nirma 


105


10


125


Gujarat Gas 


277


84


593


Gujarat NRE Coke 


7236


-74


1809


Arvind Mills 


252


23


333


Ganesh Housing Corp


14060


-84


2129


Atul Auto


2103


247


7552


United Phosphorous


15074


-29


10700


Ratnamani Metals


12765


-43


7278


Average Return


3123


22


2011




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