Turnaround Stocks of 2024: Top 5 Potential Multibaggers That Have Transformed from Struggle to Profit

2024 has seen some standout stocks that were once struggling but have now turned profitable, offering potential for significant gains. Let’s explore five of these turnaround stories:

1. IndiGo (Interglobe Aviation Ltd): IndiGo, India’s largest low-cost airline, has made a remarkable comeback. After years of losses, it reported a substantial annual profit of around ₹82 billion in FY24. Factors like rising income levels and new travel trends have boosted its revenue, aided by strategic expansions and partnerships. With a massive order of 500 aircraft, IndiGo looks poised for sustained growth.
2. Info Edge (India) Ltd: Known for brands like naukri.com and 99acres.com, Info Edge bounced back strongly with a net profit of ₹603 million in Q4 FY24, reversing a previous loss. Its diversified portfolio in online recruitment, real estate, and matrimony segments has been pivotal in its turnaround. Continued growth in these sectors signals a promising future for the company.
3. Swan Energy: Swan Energy, which diversified into LNG terminals and real estate, recorded a revenue surge of 252% YoY, reaching ₹51 billion in FY24. After acquiring Veritas India, it ventured into new sectors like oil & gas and won bids in defence infrastructure. This strategic expansion has driven its profitability turnaround significantly.
4. Tejas Networks (TNL): Tejas Networks, part of the Tata group, specializes in networking products. It reported a profit of ₹1,470 million in Q4 FY24, a stark improvement from a loss in the previous year. With a robust order book and strategic projects in telecom and utility networks, Tejas is set to capitalize on India’s digital infrastructure expansion.
5. IFCI: IFCI, a government-owned NBFC, returned to profitability in FY24 after several years of losses. Its revenue grew by 33.3%, reaching ₹19.9 billion, driven by strategic shifts into advisory services. With key roles in government initiatives like PLI schemes and potential mergers with subsidiaries, IFCI’s transformation is promising for investors.

These stocks represent compelling turnaround stories in FY24, reflecting strong management strategies and market opportunities. While investing in such potential multibaggers can offer high returns, it’s crucial to balance potential gains with risks, as not all turnaround stocks realize their full potential.