Moneycontrol
Dec 15, 2014 05:33 PM IST | Source: Moneycontrol.com

Wealth creators: Which stck saw price CAGR of 94% 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.

Wealth creators: Which stck saw price CAGR of  94% in 5 yrs

Moneycontrol Bureau


According to Motilal Oswal's annual wealth creation study, Eicher Motors' price CAGR was 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.


Company5-yr price CAGR (%)
Eicher Motors94
Bajaj Finance93
Supreme Industries88
Amara Raja Batteries84
Page Industries78
IndusInd Bank73
HCL Tech69
Aurobindo68
Havells India67
IPCA Labs67


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 Name2004-14 Price (%)
Kotak Mahindra34
Asian Paints34
Sun Pharma33
Hindustan Zinc29
ITC26
Axis Bank26
HDFC Bank26
M&M24
Bosch23
Nestle India23

(Posted by Nasrin Sultana)

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