Best and Consistent Performing Large Cap Stocks to invest in 2021
Consistent Performing Large Cap Stocks to invest in 2021
Investors always wanted to invest in winning stocks. Large cap stocks generally termed as consistent performers. However, many large cap stocks tend to perform differently in different market cycles. If any stock is giving consistent annualized returns as well as consistent annual (yearly) returns, then these are more are like a fixed deposit with fixed return. However, if such returns are 20% or 30%, won’t you get excited? Which are the best performing large cap stocks to invest in 2021? Which are the large cap stocks that are giving consistent returns in terms of annualized returns and in terms of yearly returns too?
Also Read: Bluechip Multibagger Stocks to invest in 2021
Difference between annualized returns and annual returns
Annualised returns in simple terms are the returns generated over a period of time which is annualized. E.g. X Company has grown 20% in 2019, but 5% in 2020. The annualized return in the last 2 years would be approx. 12%
Annual returns (yearly returns) are those which in simple terms are returns generated for that period. E.g. X company share price increased by 20% returns in 2019 and 19% in 2020.
How we picked up Consistent Performing Large Cap Stocks for 2021?
Here are some criteria considered.
1) Largecap stocks that gave consistent annualized returns in the last 5-10 years.
2) Largecap stocks that gave consistent annual (yearly) returns in the last 4-5 years.
3) Largecap companies that have consistently grown in terms of revenues and profits in the last 5 years are considered.
List of Consistent and Best Performing Large Cap Stocks to invest in 2021
Here are the list of large cap stocks for 2021.
#1 – Berger Paints
#2 – Info Edge (India)
#3 – Pidilite Industries
#4 – Divis Laboratories
Consistent Top Performing Large Cap Stocks to invest in 2021
#1 – Berger Paints – CMP Rs 748
Kolkata based Berger Paints is a game changer in the sector with a vibrant portfolio of paints and tailor made customer services in every paint segment. It has 16 strategically located manufacturing units across India (including the subsidiaries), 2 in Nepal, 1 each in Poland and Russia and 162 stock points. The company also has an international presence in 4 countries (Nepal, Bangladesh, Poland and Russia). It has employee strength of above 3450 excluding the subsidiaries and a countrywide distribution network of 25,000+ dealers.
Financial Performance
Its standalone revenues have grown from Rs 3,894 Crores in FY2016 to Rs 5,842 Crores in FY2020.
Its standalone profits have grown from Rs 356 Crores in FY2016 to Rs 699 Crores in FY2020.
Share Price Performance – Annualised Returns in the last 10 years
10 Years annualized returns – 36%
5 Years annualized returns – 34%
3 Years annualized returns – 45%
1 Years returns – 43%
Share Price Performance – Yearly Returns in last 5 years
In 2020 – 47%
In 2019 – 55%
In 2018 – 20%
In 2017 – 30%
In 2016 – 13%
Positive Factors of investing in this stock
Strong revenue growth in the last 5 years
Strong margin growth in the last 5 years
Its shares were consistently rewarding investors in terms of both annualized returns and yearly returns in the last 5 years
Company has low debt
The book value of the share is consistently improving
Company that has zero promoters pledge
FII/FPI has increased their stake in this company
Negative factors
De-growth in revenues and profits for Mar-20 and Jun-20 quarter majorly due to covid pandemic
Mutual Funds reduced their stake in the recent quarters
Promoters reduced their stake
Its non core income is increasing year on year.
#2 – Info Edge (India) – CMP Rs 4,985
Info Edge is one of the very few profitable pure play internet companies in the country. It is India’s premier online classifieds company in recruitment, matrimony, real estate, education and related services.
Financial Performance
Its standalone revenues have grown from Rs 806 Crores in FY2016 to Rs 1,360 Crores in FY2020.
Its standalone profits have grown from Rs 141 Crores in FY2016 to Rs 205 Crores in FY2020.
Share Price Performance – Annualised Returns in the last 10 years
10 Years annualized returns – 34%
5 Years annualized returns – 46%
3 Years annualized returns – 55%
1 Years returns – 110%
Share Price Performance – Yearly Returns in last 5 years
In 2020 – 85%
In 2019 – 76%
In 2018 – 4%
In 2017 – 55%
In 2016 – 2%
Positive Factors of investing in this stock
Strong revenue growth in the last 5 years
Strong margin growth in the last 5 years
Its shares were consistently rewarding investors in terms of both annualized returns and annual returns in the last 5 years
Strong QoQ EPS Growth in the recent quarters
Company with low debt
Improving net cash outflow in the last 2 years
Company with zero promoters pledge
FII/FPI has increased their stake in this company
Negative factors
Mutual Funds reduced their stake in the recent quarters
ROE has declined in the last 2 years
Declining revenues in the recent quarters majorly due to covid-19 pandemic
#3 – Pidilite Industries – CMP Rs 1,765
Pidilite Industries Limited is an Indian adhesive manufacturing company. It also sells art material, construction chemicals and other industrial chemicals
Financial Performance
Its standalone revenues have grown from Rs 4,801 Crores in FY2016 to Rs 6,484 Crores in FY2020.
Its standalone profits have grown from Rs 746 Crores in FY2016 to Rs 1,101 Crores in FY2020.
Share Price Performance – Annualised Returns in the last 10 years
10 Years annualized returns – 28%
5 Years annualized returns – 26%
3 Years annualized returns – 25%
1 Years returns – 21%
Share Price Performance – Yearly Returns in last 5 years
In 2020 – 26%
In 2019 – 26%
In 2018 – 23%
In 2017 – 53%
In 2016 – 6%
Positive Factors of investing in this stock
Strong revenue growth in the last 5 years
Strong margin growth in the last 5 years
Its shares were consistently rewarding investors in terms of both annualized returns and annual returns in the last 5 years
Company with low debt
Book value of share improved in the last 2 years
Improving net cash outflow in the last 2 years
Company with zero promoters pledge
FII/FPI has increased their stake in this company
Negative factors
Declining revenues in the recent quarters majorly due to covid-19 pandemic
#4 – Divis Laboratories – CMP Rs 3,569
Divi Laboratories are the India’s leading manufacturer of APIs (Active pharmaceutical ingredients), Intermediates and Registered starting materials, offering high quality products with the highest level of compliance and integrity to over 95 countries.
Financial Performance
Its standalone revenues have grown from Rs 3,815 Crores in FY2016 to Rs 5,500 Crores in FY2020.
Its standalone profits have grown from Rs 1,107 Crores in FY2016 to Rs 1,373 Crores in FY2020.
Share Price Performance – Annualised Returns in the last 10 years
10 Years annualized returns – 28%
5 Years annualized returns – 27%
3 Years annualized returns – 48%
1 Years returns – 90%
Share Price Performance – Yearly Returns in last 5 years
In 2020 – 111%
In 2019 – 25%
In 2018 – 35%
In 2017 – 40%
In 2016 – minus 32%
Positive Factors of investing in this stock
Strong revenue growth in the last 5 years
Strong margin growth in the last 5 years
Its shares were consistently rewarding investors in terms of both annualized returns and annual returns in the last 4 years
Company with low debt
Increasing profits every quarter in the last 4 quarters
Improved net cash outflow in the last 2 years
Company with zero promoters pledge
FII/FPI has increased their shareholding in this company
Also Read: 5 Midcap Multibagger Stocks that turned 1 Lakh up to 12 Lakhs
Negative factors
Company costs are growing year on year for long term projects
Mutual Funds have reduced their shareholding in recent quarters
Promoter decreased their shareholding
Should you invest in these stocks now?
The stock market is taking corrections now. One can invest in these stocks when there is dip in share prices (say 5% to 10% correction as an example).
Disclaimer: I did this analysis couple of days back and do not hold any of these shares as of now. However, I am planning to invest in these stocks in the coming days during a stock market correction.
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Thanks for sharing. Is there a way toresearch some penny stocks with growth potential in it which will reduce the risk. For example Ashok Leyland was traded at Rs. 10 some 4 years before. Today 114 after peak closer to 150
If this is so easy, every one would have earned money :-). there are several screeners where you can customize and check. e.g. revenue growth > 20%, Profitability growth 15% etc., and you can filter stocks. You can check moneycontrol, economic times, trendlyne screeners for this.
Sure. Thank you sir for your guidance
Good stocks to invest. Thanks for the details. Great job