April Fool ya Munafa Vasool: A look at the top wealth creators and destroyers of FY 2023–24

In a fun segment on Zee Business, 'April Fool ya munafa vasool', the research team analysed stocks that either helped investors create wealth or made them "April Fool" in FY24. Zee Business will give out one such stock throughout the April 1 trading session. 

Tata Motors 

The first stock that they chose was Tata Motors, which was Munafa Vasool, or wealth creator. As per the research desk, the stock has given investors yields of around 2.5 times in FY24 on the back of strong results presented in all three-quarters of FY24, and for Q4 FY24 as well, analysts peg strong results.

Further, with Jaguar Land Rover (JLR) being ready to have net cash by FY25 and two major announcements of the demerger of CV and PV businesses and the delisting of Tata Motors DVR shares, Tata Motors is on top of its game. 

Additionally, the company's increasing electric vehicle (EV) penetration in passenger vehicles (PV), JLR's stronghold in the premium segment, and big orders in the e-bus segment are some key positives. 

Vodafone Idea 

As per Zee Business Research, Vodafone Idea stock has been volatile and is still trading near December 2021 levels, so this stock was categorised under April Fool's stock, which has not given expected returns to investors. As per the desk, the fundraising events previously have been flop shows, and the company needs funds for the 5G rollout. Additionally, the company's subscriber base is declining continuously. 

Indiabulls Housing Finance

The research desk believes that Indiabulls Housing Finance stock has not been a wealth creator for investors as the stock has traded flat in the last two years and no big re-rating has taken place despite management changes. Meanwhile, its plan to separate retail and wholesale businesses was cancelled; its P/BV is 0.7, with the lowest return on equity (ROE) in the industry. The stock was once on the Nifty50 list of companies, but now it is not even seen trading in F&O.

Coal India

Coal India shares have given a multi-bagger return of over 100 per cent in a year and therefore are wealth creators for investors. As per research, global coal prices increased after the Russia-Ukraine war, which benefited the company. Apart from that, the company has given a dividend yield of six per cent even at the current price.

Delta Corp

The stock has made a fool of investors as per Zee Business research desk even though the stock gained six times returns in two years, in the past nine months the stock has declined over 60 per cent. The stock fell after it came under the scanner of the GST department. On July 11, 2023, the GST Council decided to impose 28 per cent GST on full face value. The company had received notice of total GST dues of Rs 23,206 crore. 

ITC 

The hotel-to-cigarette conglomerate ITC has been on a growth spurt for the past two years, gaining 70 per cent, and thus is a munafa vasool stock. As per research, the medium to long-term outlook for cigarette business growth looks positive and growth in the FMCG business will come from skincare, premium beverages, and food services. ITC's focus on increasing the stock is also a key positive. Further, the stake reduction of British American Tobacco (BAT) has removed the supply overhang.

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