Riken Mehta & Sagar Salvi
Gujarat CM Narendra Modi, popularly known as ‘NaMo’, has emerged as 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 the 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 2889% 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 29% 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 1930 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|
|Gujarat State Petronet||–||-16||–|
|Gujarat Ambuja Exports||3563||-62||1286|
|Gujarat NRE Coke||7236||-74||1809|
|Ganesh Housing Corp||14060||-84||2129|