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.
|Company||5-yr price CAGR (%)|
|Amara Raja Batteries||84|
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 (%)|
(Posted by Nasrin Sultana)