Which are the stocks that generated magnificent returns in the past 10 years?

Which are the stocks that generated magnificent returns in the past 10 years?
by Nikita Bhoota 15/01/2021
It is rightly said that if one stays invested in the equity markets for longer-term, the investment is likely to generate magnificent returns in the long-run.  Mr. Warren Buffet says” If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”

Given the fact that Buffett’s time horizon is a decade, we have also analysed some of the stocks from the Nifty 100 list that have generated more than 20% CAGR over a period of 10 years.

Company Name

13-01-11

13-01-21

10 yr CAGR*

Bajaj Finance Ltd.

62.2

4,902.9

54.8%

Eicher Motors Ltd.

116.9

2,868.7

37.7%

Berger Paints India Ltd.

35.8

796.6

36.4%

Bajaj Finserv Ltd.

425.2

8,793.7

35.4%

Britannia Industries Ltd.

186.0

3,621.2

34.6%

Info Edge (India) Ltd.

306.4

5,259.6

32.9%

Shree Cement Ltd.

1,830.4

24,726.4

29.7%

Havells India Ltd.

75.6

1,012.5

29.6%

Pidilite Industries Ltd.

143.8

1,793.1

28.7%

Abbott India Ltd.

1,279.4

15,001.6

27.9%

Divis Laboratories Ltd.

317.7

3,719.4

27.9%

Asian Paints Ltd.

271.4

2,703.7

25.8%

Torrent Pharmaceuticals Ltd.

291.0

2,766.7

25.3%

Kotak Mahindra Bank Ltd.

203.3

1,882.1

24.9%

HCL Technologies Ltd.

116.2

1,056.0

24.7%

Titan Company Ltd.

170.7

1,505.8

24.3%

Indraprastha Gas Ltd.

66.1

565.6

24.0%

Hindustan Unilever Ltd.

302.2

2,372.4

22.9%

Biocon Ltd.

63.3

462.8

22.0%

Aurobindo Pharma Ltd.

129.8

947.2

22.0%

Motherson Sumi Systems Ltd.

24.1

167.5

21.4%

HDFC Bank Ltd.

214.3

1,470.7

21.2%

Marico Ltd.

61.4

418.3

21.2%

Procter & Gamble Hygiene & Health Care Ltd.

1,700.8

11,340.9

20.9%

Tech Mahindra Ltd.

171.6

1,069.7

20.1%

Maruti Suzuki India Ltd.

1,315.6

8,139.9

20.0%

Source: Ace Equity
*CAGR stands for Compound annual growth rate


Bajaj Finance Ltd:
Bajaj Finance (BAF), erstwhile Bajaj Auto Finance, provides financing for two-wheelers, consumer durables, housing, small businesses, construction equipment and infrastructure finance. BAF continues to be the largest consumer durables lender in India. The stock generated 54.8% CAGR in the past 10 years.

Eicher Motors Ltd.
Eicher Motors is the flagship company of the Eicher Group in India and a leading player in the Indian automobile industry. Eicher manufactures the well-known Royal Enfield (RE) motorcycles in India. The company entered into a 50:50 JV with the Volvo Group to form VE Commercial Vehicles (VECVs). Operational since July 2008, VECV comprises five business verticals – Eicher Trucks and Buses, Volvo Trucks India, Eicher Engineering Components and VE Powertrain. VECV undertakes the complete range of Eicher’s commercial vehicles, components and engineering design businesses as well as the sales and distribution of Volvo trucks. The stock generated 37.7% CAGR in the past 10 years.

Berger Paints India Ltd:
Berger has presence in the decorative paints, industrial coatings segments in the domestic and international markets. Further, it has a presence in external insulation finishing systems. In the industrial coatings segment, Berger caters to the protective coatings, automotive (primarily two-wheeler and three-wheeler and commercial vehicles) and general industrial segments. The stock has generated 24.8% CAGR in the same period. Other stocks mentioned in the above table have generated more than 36.4% CAGR from January 13,2011- January 13, 2021.

Britannia Industries Ltd.
Britannia Industries is a primarily biscuits company based in Bangalore. Britannia Industries belongs to the Wadia Group, a cotton-to-real estate conglomerate. The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products. Biscuits contribute more than 80% of the company’s turnover. It has iconic brands like Tiger, Good Day and 50-50 under its belt. The stock generated 34.6% CAGR in the past 10 years.

Info Edge (India) Ltd.
Info Edge’s naukri.com, the leading online portal for recruitments in India, was launched in 1997. It also operates Quadrangle, a brick-andmortar executive search service. The company also has other classified based portals, jeevansathi.com (matrimony), 99acres.com (real estate) and shiksha.com (education). Info Edge’s key investments include Zomato and Policybazaar. The stock generated 32.9% CAGR in the past 10 years.

Shree Cement Ltd.
Shree Cement (SCL) is the second-largest cement player in the country, with capacity of 42mtpa. SCL derives ~70% of its sales from the northern + central regions and ~25% from the eastern region, with the balance from the South. The stock generated 29.7% CAGR in the past 10 years.

Abbott India Ltd:
The stock has generated 27.9% CAGR in the past 10 years. Abbott India ltd (AIL) is a healthcare company that discovers, develops, manufactures and markets various products in area of Anesthesia, Animal Health, Anti-Infectives, Cardiovascular, Diabetes Care, Hematology, Immunodiagnostics and Clinical Chemistry, Immunology, Metabolics, Molecular, Neuroscience, Nutrition, Oncology, Pain Care, Point of Care, Renal Care, Vascular, Virology. Company generally derives 63% revenue from brands and 37% from Insulin. Company’s top 10 brands comprise 72% of total business.

Asian Paints Ltd.
Asian Paints, the largest paint manufacturer in India, operates in the decorative as well as the industrial coatings segments (through its JV with PPG Industries) and has been the market leader in the Indian paints industry since 1968. The company is the second-largest automotive coatings player in India and caters for the auto OEM and refinish markets. Asia contributes the largest share of revenue to its international business (48%), with the rest coming from the Middle East (26%), Africa (20%) and South Pacific regions (6%). The stock has generated 25.8% CAGR from January 13, 2011- January 13,2021.

Maruti Suzuki India Ltd.
Maruti Suzuki is India’s largest passenger-car company, accounting for ~50% of domestic market share. The Indian market is dominated by compact cars and Maruti dominates this market by virtue of Suzuki’s expertise in small cars. The stock has generated 20% CAGR in the past 10 years.

The Indian stock market has witnessed huge ups and downs in the last 10 years. The factors that largely affect the share market performance are changes in Government policy, economic numbers, activities of FII and DII in the stock market, devastating effects of natural disasters.

Additionally, factors like political changes like election, budget, government intervention, geopolitical issues also have a huge impact on the financial markets. Frequent changes in exchange rates, changes in gold and bond prices also impact the stock performance. Inflation and interest rate also plays a crucial role in deciding the market movement.

Above all the challenges, the above-mentioned stocks have surpassed the benchmark index Nifty 50 and Sensex CAGR of 9.7% and 9.9% respectively in the same period. 

However, investors should not select the stocks for investment based only on historical returns. They should also consider the fundamentals of the company before picking up stocks for investment. The stocks with strong fundamentals are likely to earn good returns in the long-run.

Disclaimer: The above details is compiled from information available on public platforms. These are not buy or sell recommendations.