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Wealth creators: Which stock earned 94% profit in 5 yrs?

Bajaj Finance stands second with a price CAGR of 93 percent. Eicher, Supreme Industries and Page Industries are among the 10 fastest wealth creators for the last three studies in a row while HCL Technologies is in the top 10 of both the biggest and the fastest wealth creators.

The News International Team

If you owned shares of Eicher Motors , your profit would have almost doubled in just five years. According to Motilal Oswal’s annual wealth creation study (2009-2014), the Harley Davidson manufacturer’s price grew 94 percent from 2009 to 2014. It is fastest wealth creator in the 5-year period.

Bajaj Finance  stands second with a price CAGR of 93 percent. Eicher,  Supreme Industries and  Page Industries are among the 10 fastest wealth creators for the last three studies in a row while  HCL Technologies is in the top 10 of both the biggest and the fastest wealth creators.

“Despite their small size, many midcap companies enjoy competitive advantage in their
respective business, a key factor for high earnings growth (e.g. Eicher is a market leader in
leisure motorcycles, and has Volvo as a partner for its commercial vehicles franchise).
Combination of high earnings growth, low valuation and small market cap, leads to high
wealth creation at a rapid pace,” the brokerage adds.

Company 5-yr price CAGR (%)
Eicher Motors 94
Bajaj Finance 93
Supreme Industries 88
Amara Raja Batteries 84
Page Industries 78
IndusInd Bank 73
HCL Tech 69
Aurobindo 68
Havells India 67
IPCA Labs 67

 

Most consistent wealth creator

Kotak Mahindra Bank is the most consistent wealth creator over the last 10-year period 2004-14, while 8 of the top 10 most consistent wealth creators are consumer-facing companies, with Hindustan Zinc and Bosch the only exceptions.

Motilal Oswal says that sustainable and profitable growth in companies is a function of quality of business and quality of management.

Company Name 2004-14 Price (%)
Kotak Mahindra 34
Asian Paints 34
Sun Pharma 33
Hindustan Zinc 29
ITC 26
Axis Bank 26
HDFC Bank 26
M&M 24
Bosch 23
Nestle India 23

 

(Posted by Nasrin Sultana)

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