High beta stocks tend to experience sharper movements compared to the broader market, making them a double-edged sword for investors. While they offer the potential for outsized gains, they also carry significant risks due to their volatility. For investors willing to embrace higher risk for the possibility of higher returns, here are five companies with a beta of more than one.
1. Adani Power Ltd
Adani Power (APL), a part of the Adani Group, is India’s largest private thermal power producer. The company and its subsidiaries generate electricity that is sold through a mix of long-term power purchase agreements, short-term contracts, and merchant sales, making it a major player in the country’s energy sector.
The company has a market cap of Rs. 2,35,388.98 crore and is currently trading at Rs. 610.30. Over the past six months, the stock has delivered a return of 20.72 percent, while it declined by 5.21 percent over the last one year. On a three-year basis, the stock gained 52.10 percent. The stock carries a three-year beta of 2.47, reflecting high volatility compared to the market.
2. Anant Raj Ltd
Anant Raj Ltd, incorporated in 1985 as Anant Raj Clay Products by Ashok Sarin, is engaged in real estate development. The company focuses on IT parks, hospitality projects, SEZs, office complexes, shopping malls, and residential developments across Delhi, Haryana, Andhra Pradesh, Rajasthan, and the NCR. Over the years, it has successfully developed more than 20 million square feet of projects across multiple real estate segments.
The company has a market cap of Rs. 18,460.56 crore and is currently trading at Rs. 537.80. The stock rose 16.08 percent over the last six months but declined by 13.88 percent in the past year. Over a three-year period, it delivered impressive returns of 473.96 percent. The stock has a three-year beta of 2.19, making it highly sensitive to market swings.
3. DLF Ltd
DLF Ltd, along with its subsidiaries, associates, and joint ventures, is engaged in real estate development. Its operations span land acquisition, planning, execution, and construction of projects. Additionally, the company is involved in leasing, power generation, maintenance, hospitality, and recreational services linked to real estate development.
The company has a market cap of Rs. 1,87,368.97 crore and is currently trading at Rs. 756.95. The stock has risen 14.46 percent in the last six months but declined by 10.06 percent over the past year. In the last three years, it delivered a return of 91.63 percent. The stock has a three-year beta of 2.16, reflecting significant volatility against the benchmark.
4. Adani Enterprises Ltd
Adani Enterprises is engaged in integrated resources management, mining services, and trading activities. Acting as an incubator for the Adani Group, the company has expanded into diverse businesses, including renewable energy, airports, roads, copper, digital platforms, FMCG, infrastructure, logistics, and food-related ventures.
The company has a market cap of Rs. 2,63,441.75 crore and is currently trading at Rs. 2,282.50. In the past six months, the stock has returned 1.63 percent. Over one year, it declined by 24.30 percent, and in three years, it slipped by 31.98 percent. The stock has a three-year beta of 2.06, indicating strong price volatility compared to the market.
5. Steel Authority of India Ltd (SAIL)
Steel Authority of India Limited, a Maharatna company, is one of the largest steel producers in India. Operating through five integrated plants and three special steel plants across the eastern and central regions, SAIL manufactures and markets a wide range of steel products, with production facilities located close to raw material sources.
The company has a market cap of Rs. 53,407.69 crore and is currently trading at Rs. 129.30. In the last six months, the stock rose 14.90 percent, but it fell 1.46 percent in the past year. Over the last three years, it gained 63.26 percent. The stock has a three-year beta of 2, underlining its high volatility.
6. Reliance Power Ltd
Reliance Power is engaged in the development, construction, and operation of power projects both in India and abroad. The company, through its subsidiaries, has a large portfolio of operating and under-development power generation assets, making it a notable player in the energy sector.
The company has a market cap of Rs. 19,338.87 crore and is currently trading at Rs. 46.76. The stock has surged 34.91 percent over the past six months and 51.57 percent over the last year. In the past three years, it delivered robust returns of 120.57 percent. The stock carries a three-year beta of 1.95, suggesting higher-than-market volatility.
Written by – Manan Gangwar
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