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

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.

December 15, 2014 / 17:33 IST
     
     
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    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 theirrespective business, a key factor for high earnings growth (e.g. Eicher is a market leader inleisure 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 highwealth 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)
    first published: Dec 12, 2014 06:05 pm

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