Some Multibagger Stocks of the Last Decade
August 2, 2013 5 Comments
| SOME MULTIBAGGER STOCKS IN THE LAST 10 YEARS IN THE INDIAN STOCK MARKET | ||||||
| Company | Price on 01.04.03 | Adj. Price on 28.03.13 | CAGR (10 Years) | Rank | Multiple(x) | |
| TTK Prestige | 7.40 | 3234.40 | 83.68% | 1 | 436.08 | |
| Mayur Uniquoters | 2.00 | 820.00 | 82.51% | 2 | 409.00 | |
| JSW Steel | 4.00 | 670.70 | 66.90% | 3 | 166.68 | |
| Nesco | 220.00 | 30744.00 | 63.88% | 4 | 138.75 | |
| Hawkins Cooker | 18.25 | 2142.95 | 61.06% | 5 | 116.42 | |
| Titan Industries | 51.50 | 5130.00 | 58.43% | 6 | 98.61 | |
| Balkrishna Industries | 44.80 | 4082.25 | 57.02% | 7 | 90.12 | |
| Shree Cement | 45.90 | 4057.95 | 56.55% | 8 | 87.41 | |
| Havells India | 118.00 | 10363.20 | 56.44% | 9 | 86.82 | |
| Amara Raja Batteries | 49.75 | 4104.75 | 55.47% | 10 | 81.51 | |
| Hindustan Zinc | 15.30 | 1211.50 | 54.83% | 11 | 78.18 | |
| GRUH Finance | 16.00 | 1051.25 | 51.97% | 12 | 64.70 | |
| Vinati Organics | 12.50 | 775.13 | 51.09% | 13 | 61.01 | |
| Motherson Sumi | 57.05 | 3259.41 | 49.86% | 14 | 56.13 | |
| Shriram Transport Finance | 14.15 | 695.80 | 47.63% | 15 | 48.17 | |
| Gujarat Fluorochemicals | 61.00 | 2992.50 | 47.59% | 16 | 48.06 | |
| Lupin | 129.60 | 6290.50 | 47.44% | 17 | 47.54 | |
| Kotak Mahindra Bank | 159.70 | 6514.00 | 44.90% | 18 | 39.79 | |
| Exide Industries | 74.00 | 2584.00 | 42.66% | 19 | 33.92 | |
| Crisil Ltd. | 255.00 | 8862.50 | 42.59% | 20 | 33.75 | |
| Sun Pharma | 274.00 | 8183.50 | 40.45% | 21 | 28.87 | |
| Godrej Consumer | 105.15 | 3117.00 | 40.34% | 22 | 28.64 | |
| Coromandel International | 65.00 | 1850.00 | 39.77% | 23 | 27.46 | |
| IndusInd Bank | 15.90 | 404.95 | 38.23% | 24 | 24.47 | |
| Bosch India | 3628.40 | 90543.50 | 37.95% | 25 | 23.95 | |
| Pidlite Industries | 218.00 | 5262.00 | 37.49% | 26 | 23.14 | |
| Bajaj Finance | 48.50 | 1154.35 | 37.30% | 27 | 22.80 | |
| Sterlite Industries | 159.35 | 3752.00 | 37.15% | 28 | 22.55 | |
| Asian Paints | 329.25 | 7371.60 | 36.46% | 29 | 21.39 | |
| GMDC | 76.80 | 1656.50 | 35.95% | 30 | 20.57 | |
| Bharti Airtel | 29.25 | 583.60 | 34.90% | 31 | 18.95 | |
| GSK Consumer Healthcare | 220.00 | 4186.75 | 34.26% | 32 | 18.03 | |
| Torrent Pharma | 160.00 | 2781.00 | 33.05% | 33 | 16.38 | |
| VST Industries | 95.00 | 1504.55 | 31.82% | 34 | 14.84 | |
| ITC | 626.95 | 9273.00 | 30.92% | 35 | 13.79 | |
| Piramal Enterprises | 206.90 | 3052.00 | 30.88% | 36 | 13.75 | |
| ILFS Investment Managers | 16.25 | 224.44 | 30.02% | 37 | 12.81 | |
| MRF | 878.00 | 11992.60 | 29.88% | 38 | 12.66 | |
| Cummins India | 51.50 | 695.94 | 29.74% | 39 | 12.51 | |
| HDFC Bank | 233.90 | 3120.50 | 29.57% | 40 | 12.34 | |
| SKF India | 42.85 | 549.95 | 29.07% | 41 | 11.83 | |
| Colgate Palmolive(India) | 120.95 | 1246.45 | 26.27% | 42 | 9.31 | |
| Emami | 272.85 | 2403.60 | 24.31% | 43 | 7.81 | |
| Nestle India | 531.00 | 4589.45 | 24.07% | 44 | 7.64 | |
| Hero Motocorp | 186.20 | 1541.90 | 23.54% | 45 | 7.28 | |
| ICICI Bank | 134.80 | 1045.35 | 22.73% | 46 | 6.75 | |
| SBI | 274.05 | 2072.75 | 22.43% | 47 | 6.56 | |
| Castrol India | 189.80 | 1266.80 | 20.90% | 48 | 5.67 | |
| Infosys | 4080.35 | 23119.20 | 18.94% | 49 | 4.67 | |
| RIL | 281.75 | 1547.40 | 18.57% | 50 | 4.49 | |
| Britannia | 496.25 | 2621.50 | 18.11% | 51 | 4.28 | |
| Wipro | 1235.85 | 4371.50 | 13.47% | 52 | 2.54 | |
| HUL | 149.50 | 466.10 | 12.04% | 53 | 2.12 | |
| Notes | ||||||
| 1. All figures are based on the closing prices at BSE during the above mentioned time period after adjusting for bonuses and splits . | ||||||
| 2. Dividends are excluded from the above research. Some of the companies have given huge dividends during the above time frame . | ||||||
| 3. All figures are taken from the BSE website and moneycontrol.com . | ||||||
| 4. The list is not exhaustive but only a representative basket from the universe of more than 5000 listed companies in India . | ||||||
| 5. The research is not a recommendation but an introspection about the power of compounding and the benefit of long-term investing . | ||||||
| 6. It is not guaranteed that the same set of companies would perform similarly in the next decade. Readers are advised to do individual research . | ||||||
| 7. Investing in the right opportunity at the right time determines the magnitude of success in equity markets. | ||||||
| The results could be totally different for a different time frame . | ||||||
| 8. Focussing on the investment research process rather than speculating about the result is the mantra for long-term investment success . | ||||||
| 9. Comment(s) and feedback would be appreciated | ||||||
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About Saurav Jalan
Hey saurav what was the motive of this exercise. I had tried a similar exercise sometime back. So was curious about your motive.
Hi Abhishek.
Actually, there were a few reasons behind this exercise.
1. I wanted to see if any 1000 bagger! existed in the last 10 yrs, which I did not find in the universe which I researched.
2. One thing which I do in my investment analysis is to bet on the ability of the entrepreneur, in a scalable industry. I wanted to analyze which all entrepreneurs have done it in the last decade and how much juice is left in them to repeat the same or improve their performance in the next decade. Branded franchisees like Nestle, Castrol, Colgate etc won’t give me 100 baggers but some of these entrepreneurs can. Mayur Uniquoters, Nesco, Bajaj Finance(also Finserv), Piramal Enterprises, Hindustan Zinc (also other Vedanta group companies like Cairn India, Sesa Sterlite), Sun Pharma etc are some of the entrepreneur led companies which I think have a lot of juice left in them for the coming decade.
3. To see if I can find any inference from a sectoral angle. I have concluded that most of the companies which have given multibagger returns have catered to the domestic consumption story and some of them haven’t arrived yet in the Indian market due to still lower penetration. For eg: In sector like BFSI, players like Gruh Finance, Bajaj Finance, Shriram Transport Finance etc. have plenty to offer in the coming decade.
These were some of my inferences. I hope there are many more, which I have not been able to capture and would learn from the comment(s) of people like you 🙂
Great study Saurav. I see 3 factors contributing to a stock being a mega multi-bagger in the future: high ROCE business (so that it is less dependent on external financing), somewhat clean management committed to growth AND absurdly low prices to begin with. I am curious how exactly you did the study – it would be great if you could share your methodology so that we too can replicate is for different time frames to better understand these mega multi-baggers. Thanks for sharing your study.
Thanks Paddy for your appreciation. The methodology to do this exercise was simple. I made a list of companies which were at the back of my mind for one reason or the other. Then I extracted the data from moneycontrol and BSE website. Finally, I came up with this list. Reading about various types of businesses and companies over a period of time helped to build a mental database of companies.
I agree with you on the factors for identifying multibaggers. Apart from the above, some of the factors which in my opinion can help identify multibagger(s) are as follows :
1. Quality, vision and temperament of the entrepreneur who is leading the company. For eg: Is the leadership more focused on the process or the outcome ?
2. How scalable is the business ? Is there a potential for huge domestic or export demand waiting to be tapped ?
3. Underlying economics of the business. Some type of businesses are really tough and painful like airlines, textiles (unbranded) etc.
4. Does the balance sheet shows a strengthening or weakening trend ?
5. High ROIC, decent ROE and high earnings yield (high ROIC can denote a moat).
6. How the business will fit into the big economic picture over a decade ?
7. Last but not the least, your personal conviction about the company after doing all the necessary research.
Some of the unethical companies might give multibagger returns due to other external factors but I personally wouldn’t like to make money from such companies.
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