Portfolio Stocks: These 3 Nifty 50 Cos. Delivered ‘Biggest Gains’ in 5 years!
While making a long-term portfolio, investors often rely on the history of the stock as the future is always uncertain. How a stock has performed over the past few years gives a decent level of confidence while trying to project its future trajectory, although that does not guarantee any future returns.
In other words, stocks that survived geopolitical tensions, economic turbulence, political instability changing interest rate cycles etc., and still delivered massive returns to investors are likely to withstand these changing economic scenarios better than others in the future. On that note, here are 3 stocks from the list that delivered the biggest gains (CAGR) in the last 5 years. One thing that is common in all three companies is that all of them posted the highest-ever revenue in FY22.
Adani Enterprises Limited
The first name on the list is Adani Enterprises Ltd (NS:) which was a recently added stock to the prestigious list of Nifty 50, replacing Shree Cements (NS:). The stock secures the first spot by a fair margin, delivering a gigantic CAGR of 111.7% in the last 5 years. To make it simple, the stock kept on doubling every year for the last five!
The massive rally in the stock was also on account of aggressive expansion plans of the entire group, the result of which is seen in the financials as well. The FY22 revenue of the company was the highest ever, at INR 70,432.69 crores and it increased its market share from 45.6% to 53.3% in five years. However, the PAT margins are not very attractive, with the FY22 margin of a mere 1.1%.
Divi’s Laboratories Limited
Surprisingly, a pharma company secures the second spot on the list and that is Divi’s Laboratories Ltd. (NS:) which has a market capitalization of INR 1,00,349 crores. The stock rose at a CAGR of a lucrative 34.32% in the last five years which is actually a dream CAGR for investors. It might not seem much, compared to a 111.7% CAGR of Adani Enterprises, however, the latter is an outlier, and such returns are one-of-a-kind events.
The pharma space is not very much liked by investors, but Divis Laboratories seems to catch investors’ attention quite well with its revenue growth at 17% CAGR over the last 5 years to INR 9,073.7 crores in FY22 which was the highest on record. The net income of INR 2,960.45 in FY22 is record-breaking and the PAT margin of 32.63% is also the highest, since at least FY14.
Titan Company Limited
The last stock was the late Mr. Rakesh Jhunjhunwala’s favorite – Titan Company Ltd (NS:). It is a consumer discretionary company with a market capitalization of INR 2,30,073 crores with a robust presence in watches, jewellery, and eyewear segments. Titan investors have had a good time as the stock delivered a return of 34.16% (CAGR) over the last 5 years, which is minutely lesser than Divi’s Laboratories.
The company posted a record revenue of INR 29,033 crores in FY22, consequently leading to a record net income of INR 2,173 crores. Surprisingly, the company has been able to grow its net income at a CAGR of 25.02% over the last 5 years, which is probably why FIIs and DIIs also hold a 16.77% and 5.91% respective stake in the company.
While making a long-term portfolio, investors often rely on the history of the stock as the future is always uncertain. How a stock has performed over the past few years gives a decent level of confidence while trying to project its future trajectory, although that does not guarantee any future returns.
In other words, stocks that survived geopolitical tensions, economic turbulence, political instability changing interest rate cycles etc., and still delivered massive returns to investors are likely to withstand these changing economic scenarios better than others in the future. On that note, here are 3 stocks from the list that delivered the biggest gains (CAGR) in the last 5 years. One thing that is common in all three companies is that all of them posted the highest-ever revenue in FY22.
Adani Enterprises Limited
The first name on the list is Adani Enterprises Ltd (NS:) which was a recently added stock to the prestigious list of Nifty 50, replacing Shree Cements (NS:). The stock secures the first spot by a fair margin, delivering a gigantic CAGR of 111.7% in the last 5 years. To make it simple, the stock kept on doubling every year for the last five!
The massive rally in the stock was also on account of aggressive expansion plans of the entire group, the result of which is seen in the financials as well. The FY22 revenue of the company was the highest ever, at INR 70,432.69 crores and it increased its market share from 45.6% to 53.3% in five years. However, the PAT margins are not very attractive, with the FY22 margin of a mere 1.1%.
Divi’s Laboratories Limited
Surprisingly, a pharma company secures the second spot on the list and that is Divi’s Laboratories Ltd. (NS:) which has a market capitalization of INR 1,00,349 crores. The stock rose at a CAGR of a lucrative 34.32% in the last five years which is actually a dream CAGR for investors. It might not seem much, compared to a 111.7% CAGR of Adani Enterprises, however, the latter is an outlier, and such returns are one-of-a-kind events.
The pharma space is not very much liked by investors, but Divis Laboratories seems to catch investors’ attention quite well with its revenue growth at 17% CAGR over the last 5 years to INR 9,073.7 crores in FY22 which was the highest on record. The net income of INR 2,960.45 in FY22 is record-breaking and the PAT margin of 32.63% is also the highest, since at least FY14.
Titan Company Limited
The last stock was the late Mr. Rakesh Jhunjhunwala’s favorite – Titan Company Ltd (NS:). It is a consumer discretionary company with a market capitalization of INR 2,30,073 crores with a robust presence in watches, jewellery, and eyewear segments. Titan investors have had a good time as the stock delivered a return of 34.16% (CAGR) over the last 5 years, which is minutely lesser than Divi’s Laboratories.
The company posted a record revenue of INR 29,033 crores in FY22, consequently leading to a record net income of INR 2,173 crores. Surprisingly, the company has been able to grow its net income at a CAGR of 25.02% over the last 5 years, which is probably why FIIs and DIIs also hold a 16.77% and 5.91% respective stake in the company.