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It would not be wrong to say that one can stick to the equity market for the long term if the made investment generates glorious returns over a long time. The primary motive of this blog post is to show a list of the best return-giving shares for the past 10 years. Though the stocks look admirable such stocks are often volatile in nature and their prices can go between their highs and lows very frequently. According to Mr Warrent Buffet “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes”.
Some of the stocks listed below are analyzed from the NIFTY 100 list and those that have generated more than 20% CAGR for the past 10 years and have the probabilities to be one of the best return-giving shares for the past 10 years.
| Company Name | 17-Aug-2011 | 17-Aug-21 | 10 Year CAGR( Compound Annual Growth Rate) |
| Bajaj Finance Limited | 67.3 | 6410.1 | 57.7% |
| Bajaj Finserv Limited | 488.4 | 14737.3 | 40.6% |
| Berger Paints India Limited | 37.3 | 815.0 | 36.1% |
| Eicher Motors Limited | 136.0 | 2525.7 | 33.9% |
| Havells India Limited | 68.1 | 1224.4 | 33.5% |
| Shree Cement Limited | 1651.3 | 26,200.3 | 31.8% |
| Britania Industries Limited | 236.6 | 3696.5 | 31.6% |
| Info Edge (India) Limited | 351.2 | 5455.3 | 31.6% |
| Pidilite Industries Limited | 168.2 | 2216.1 | 29.4% |
| Abbott India Limited | 1470.1 | 19045.3 | 29.2% |
| HCL Technologies Limited | 105.8 | 1143.0 | 26.9% |
| Aurobindo Pharma Limited | 71.4 | 731.5 | 26.2% |
| Torrent Pharmaceuticals Limited | 308.5 | 3008.1 | 25.6% |
| Aian Paints Limited | 324.5 | 3015.3 | 25.5% |
| Titan Company Limited | 210.4 | 18745.5 | 24.4% |
| Kotak Mahindra Bank | 222.8 | 1788.4 | 23.2% |
| Tech Mahindra Bank | 179.0 | 1413.7 | 23.0% |
| Hindustan Unilever Limited | 316.4 | 2483.8 | 22.9% |
| Mother Sumi System Limited | 28.9 | 216.2 | 22.3% |
| Biocom Limited | 54.3 | 366.6 | 21.0% |
| Marico Limited | 79.9 | 520.6 | 20.7% |
Disclaimer: The above details are compiled from information available on public platforms. These are not buying or selling recommendations. Source: https://www.5paisa.com/
Let’s get into the insights of some of the companies with the best return giving shares for the past 10 years.
Bajaj Finance Ltd: BAF also known as Bajaj Auto Finance are in the business of providing finances for two-wheelers, consumer goods, housing, small businesses, equipment used for construction and financial infrastructure. In India, BAF is the largest consumer durables lender and their stocks have generated 57.7% CAGR in the past 10 years.
Eicher Motors Ltd: It is a flagship company of Eicher Motors Group in India and a leading business player in the automobile industry of India. A very well-known motorcycle Royal Enfield (RE) is manufactured by Eicher Motors. it then entered into a JV with the Volvo Group to form VE Commercial Vehicles (VECVs). VECV comprises 5 business verticals- Eicher Trucks and Busses, Volvo Trucks India, Eicher Engineering Components and VE Powertrain.
Berger Paints India Limited: the presence of Berger is in decorative paints and industrial coating segments in the domestic and international markets. It also has a presence in external insulation finishing systems. It also caters to protective coatings, automotive and general industrial segments.
Britannia Industries Limited: Primarily a biscuit company in Bangalore. It is owned by the Wadia Group, which is a cotton-to-real estate conglomerate. Its principal products are the manufacturing and selling of biscuits, bread, rusk, cakes and dairy products. Eighty per cent of the company’s turnover comes from biscuits sold under iconic brands like Tiger, Good Day and 50-50.
Abbott India Limited: It is a medical and healthcare product-based company. AIL discovers, develops, manufactures and markets various products in the sectors of Anesthesia, Animal Health, Anti-Infectives, Cardiovascular, Diabetes Care, Hematology, Immunodiagnostics & Clinical Chemistry etc and many more areas of health care.
Asian Paints Limited: They are one of the largest paint manufacturers in India. It operates in decorative and industrial coating through its JV with PPG Industries. Since 1968 it has been in the Indian paint industry. It is India’s second-largest producer of automotive coatings and has a provision for the auto OEM and refinishes markets. The revenue share in the international business comes highest from Asia with 46%, while the rest of the revenue comes from the Middle East (28%), Africa (25) and South Pacific regions (5%).
Shree Cement Limited: It is the second-largest cement producer in the country with 42mtpa as its capacity. Shree cement obtains 70% of its sales from the northern and central regions and 25% from the eastern region, while the rest comes from the south.
Torrent Pharmaceuticals Limited: It is a pharmaceutical company which is fully integrated and produces branded and generic formulations, APIs and intermediates. Thirty-nine per cent of torrent’s revenues come from the domestic market share because there the company has a speciality focussed product basket and a marketing setup which is pretty strong. Its ranking is second in the CVS segment and third in the CNS segment which is two of the fastest-growing therapies in India.
Info Edge (India) Limited: Launched in the year 1997, it has a leading online portal for recruitment in India by the name naukri.com. Other operations of it are Quadrangle and brick-and-mortar executive search services. it also has other classified-based portals like jeevansathi.com for matrimony, 99acres.com for real estate and sikhsha.com for educational purposes. However, Zomato and Policybaazar are their key investment.
In the past 10 years, the share market has seen ups and downs and the factors that largely affect the performance of the share market are amendments in the Government policy, economic numbers, activities of FII and DII in the stock market, and devastating effects of natural disasters. Factors like elections, budget, government intervention, and geopolitical issues have a massive impact on the share market. The performances of the stocks are also affected by the frequent changes in the exchange rates, and gold and bonds prices. Interest rates and inflation also plays a major role in deciding market movements.
Always remember that you aren’t supposed to select stocks for investment based on historical returns. Always remember to consider the fundamentals of a company before picking up stocks because, in the long run, stocks with strong fundamentals have chances to earn good returns.
