Markets

These 25 stocks beat all asset classes on returns chart

With the benchmark indices touching record highs in the run-up to Christmas, you might be sitting on large profits if you had invested in a set of stocks that yielded consistent returns over the past five years.

Of about 3,000 actively traded stocks on the Indian bourses, 25 have given a consistent return of more than 15 per cent in each of the past five years, beating all asset classes. Analysts say that chances of investors getting stellar returns in these stocks are still high.

"These companies were able to ride various business cycles due to their inherent strengths — market leadership, technology advantage, good distribution network or brand recall," said Ajay Bodke, CEO, Prabhudas Lilladher. "Considering any or a combination of these strengths, it is reasonable to assume that these companies will continue to give decent returns in the next year."

Shares of Maruti, India's biggest carmaker, touched the 10,000 mark last week. They have given a compounded annual return of 45 per cent in the last five years, and Maruti's stocks are leading the table of robust gainers. At 34 times one- year forward PE, Maruti is trading well above its long-term mean multiple. However, the end-market opportunity and superior ROCEs justify the valuation, according to analysts. Stocks such as Bajaj Finance and Vakrangee have become large-caps from midcaps in the past five years, while KRBL, Bharat Financial, Hatsun Agro, and Vardhman Textiles are now midcaps, and they were small-cap stocks five year ago.

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