Top High-Risk Return Stocks To Invest In India In 2024
Introduction
Stock markets are inherently risky. However, with high risks come high returns. Investing in high-risk and high-return stocks can help you beat inflation and build a corpus for long-term goals such as children’s education and retirement, among others. This blog highlights high-risk and high-return stocks that you can look forward to investing in 2024.
Top High-Risk Return Stocks in India
Below are the top high-risk return stocks in India, investing in which can help you boost wealth creation in the long run.
- Reliance Industries Ltd
Investing in Reliance Industries Ltd.‘s stock offers potential risk and reward. As one of India’s foremost conglomerates, the company has consistently demonstrated its prowess in various sectors, ranging from petrochemicals to telecommunications. However, the company’s diversification, while a source of strength, also exposes it to a wide array of market fluctuations and regulatory challenges.
Its ambitious expansion into sectors such as digital services through Jio Platforms has captured investor attention, promising immense potential for future revenue streams. However, Reliance Industries’ wide-ranging operations also expose it to various risks. The company’s heavy reliance on the performance of the oil and gas industry, for instance, subjects it to the volatility of commodity prices and global market trends. The one-year trailing return of the company’s stock stood at 30.56%.
- Adani Enterprises
Investing in stocks of Adani Enterprises can be likened to navigating turbulent waters. While the company’s diverse portfolio spans across sectors like energy, infrastructure, logistics, and agribusiness, offering the allure of potential high returns, you must acknowledge the inherent risks. Adani Enterprises‘ fortunes are deeply intertwined with the volatile nature of global commodity markets, regulatory uncertainties, and environmental concerns.
One of the primary risks stems from the company’s heavy reliance on coal, with a significant portion of its revenue derived from coal mining and trading. With increasing global efforts towards decarbonisation and renewable energy adoption, Adani Enterprises faces the challenge of adapting its business model to align with shifting market dynamics. The one-year trailing returns from Adani Enterprises’ stocks stood at 66.05%.
- Tata Consultancy Services
As a premier IT services and consulting firm, Tata Consultancy Services (TCS) operates within an inherently volatile industry, subject to rapid technological advancements, geopolitical tensions, and economic fluctuations. While TCS has demonstrated remarkable resilience and adaptability over the years, navigating through these challenges, its stock performance can still be sensitive to broader market conditions and sector-specific dynamics.
TCS’s business model heavily relies on its ability on technological innovation. While this positions the company for substantial growth opportunities, it also exposes it to risks associated with intense competition, potential disruptions from emerging technologies. The one-year trailing returns from TCS’s stock stood at 21.45%.
- State Bank of India
As India’s largest public sector bank, the State Bank of India (SBI) plays a pivotal role in the nation’s financial ecosystem. Its expansive reach, robust infrastructure, and government backing provide a solid foundation, enticing with the promise of substantial rewards. However, beneath the surface is a complex interplay of economic, regulatory, and internal challenges that amplify its risk profile.
One of the primary factors contributing to SBI’s high-risk status is its exposure to India’s broader economic landscape. SBI’s performance is intricately linked to macroeconomic indicators such as GDP growth, inflation rates, and fiscal policies. The one-year trailing return of SBI’s stock stood at 41.05%.
- Sunteck Realty
As a real estate developer, Sunteck operates in a sector that is deeply influenced by economic fluctuations, government policies, and market sentiment. While the company’s ventures might promise lucrative returns, they are also subject to the volatility inherent in the real estate market. Factors such as changes in interest rates, demand-supply dynamics, and regulatory hurdles can impact Sunteck’s profitability and stock performance.
Furthermore, Sunteck’s high-risk, high-return nature stems from its ambitious projects and expansion strategies. While aggressive expansion can lead to rapid growth and increased market share, it also exposes the company to elevated debt levels, execution risks, and project delays. The one-year trailing return of the company’s stock stood at 43.89%.
Wrapping it up
The companies mentioned above are dominant players in their respective domains. Though they carry high risk, their strong balance sheets, experienced management, and robust track records provide them stability and better equip them to weather volatility.
Trending Blogs: Invest in Small Cap & Mid Cap Mutual Fund & Stocks | US FED’s rate cut announcements | Companies affected by Rise in Crude Oil Price | Fall in IT Stocks | Launch of 4 New Indices | Revised Lot Size of Nifty Contracts | RBI Monetary Policy Committee Meet 2024 | ITC Share Surge After BATs Block Deal | Impact of RBI Circular on Currency Trading
Related Blogs – Top sugar stocks to invest in India in 2024 | Best liquor stocks you can add to your portfolio in 2024 | 5 Best Banking Stocks to Invest in 2024 | Top 5 hotels stocks to buy in India in 2024
Popular Stocks: ICICI Bank Share Price | HDFC Bank Share Price | CDSL Share Price | UPL Share Price | TCS Share Price | BHEL Share Price | Trident Share Price | IRFC Share Price | Adani Power Share Price
