Large cap stocks always create wealth for long term investors. However, picking up the right stock is the key. While investors can assess the company with financials and future prospects, share price growth is also one of the key parameters to check. Would you be excited to invest in a stock that is consistently rewarding investors in the short term, medium term and long term? In this article we would provide Top 5 Large Cap Stocks that generated consistent returns in the last 1 year, 3 years, 5 years and 10 years.
Also Read: This Mutual Fund gave highest SIP returns in last 20 years
What are large cap stocks?
Large-cap companies are businesses which are well-established and have a significant market share. These companies dominate the industry and are very stable.
Large cap stocks are classified between 1st to 100th companies in term of market capitalization in India. These stocks are considered to be a relatively safe bet compared to mid cap or large cap stocks.
How we filtered these consistent performing large cap stocks?
We have considered top 100 stocks in terms of market capitalization.
Filtered the stocks that generated highest annualised returns in last 1 year, 3 years, 5 years and 10 years.
We could get 5 stocks that generated over 16% annualised returns consistently in the short term, medium term and long term. The next 30 stocks generated over 16% annualised returns, however, only about 75% of the times.
5 Consistent Performing Large Cap Stocks In last 10 Years
Here is the list of large cap stocks that generated consistent wealth for investors in the last 10 years time frame.
#1 – Adani Enterprises
#2 – Adani Power
#3 – PI Industries
#4 – JSW Steel
#5 – Cholamandalam Investments
5 Consistent Performing Large Cap Stocks in 2023 – Detailed Analysis
Now let us get into more details about company, financial performance, share price movement, positives and risk factors. This would help investors to take decision whether to consider them for investment or to avoid.
#1 – Adani Enterprises
Adani Enterprises Ltd, the flagship entity of Adani Group, is an incubator focusing on establishing diverse new businesses.
Financial Performance
Its consolidated revenues increased from Rs 35,923 Crores (FY2018) to Rs 69,420 (FY2022) in the last 5 years.
Its consolidated profits increased from Rs 327 Crores (FY2018) to Rs 475 Crores (FY2022) in the last 5 years.
Its EPS increased from Rs 6.89 to Rs 7.06 in the last 5 years.
Positive Factors in this company
Strong revenue growth in the last 5 years
Strong margin growth in the last 5 years
Good quarterly growth in the recent results declared by the company
Book value per share is increasing in the last few years
Company promoter pledge is decreasing
Negative Factors in this company
Share is trading at a higher P/E ratio of over 350x.
MF’s reduced their stake in this company in recent times
ROE and RoA has declined in the last few years
Share Price Performance / Returns
1 Year – 116%
3 Years annualised returns – 160%
5 Years annualised returns – 87%
10 Years annualised returns – 30%
#2 – Adani Power
Adani Power Ltd is part of Adani group which has been established to carry on the business of generation, accumulation, distribution and supply of power and to generally deal with electricity and to explore, develop, generate, accumulate, supply and distribute or to deal with other forms of energy from any source whatsoever.
Financial Performance
Its consolidated revenues increased from Rs 20,304 Crores (FY2018) to Rs 27,711 (FY2022) in the last 5 years.
It has incurred consolidated losses of Rs 2,073 Crores in FY2018 and earned profits of Rs 4,911 Crores in FY2022.
Positive Factors in this company
Strong revenue growth in the last 5 years
The company turned loss making to profit making from FY21 onwards
Strong EPS growth in the last few years
RoA and RoCE is improving in the last 2 years
Book value per share is increasing in the last few years
Company promoter pledge is decreasing
FII and DIIs has increased their shareholding in this company
Negative Factors in this company
Company has high debt
Its net profits have declined in recent quarters
Share Price Performance / Returns
1 Year – 200%
3 Years annualised returns – 70%
5 Years annualised returns – 50%
10 Years annualised returns – 17%
#3 – PI Industries
PI Industries Ltd is engaged in the business of- Agri inputs, Fine Chemicals and Contract Research and Manufacturing Services, Polymers and Engineering Services.
Financial Performance
Its consolidated revenues increased from Rs 2,277 Crores (FY2018) to Rs 5,299 (FY2022) in the last 5 years.
Its consolidated profits increased from Rs 367 Crores (FY2018) to Rs 840 Crores (FY2022) in the last 5 years.
Its EPS increased from Rs 26.72 to Rs 55.65 in the last 5 years.
Positive Factors in this company
Strong revenue growth in the last 5 years
Strong margin growth in the last 5 years
Good quarterly growth in the recent results declared by the company
Company with zero promoter pledge
Company with low debt
Company revenues are increasing every quarter in the past 4 quarters
Book value per share is increasing in the last few years
FII and DIIs has increased their shareholding in this company
Negative Factors in this company
ROE and RoCE is declining in the last few years
Share Price Performance / Returns
1 Year – 16%
3 Years annualised returns – 35%
5 Years annualised returns – 30%
10 Years annualised returns – 40%
4 – JSW Steel
JSW Steel Ltd is the largest private sector steel manufacturer in terms of installed capacity. It is also one of the lowest cost steel producers in the world. It offers a wide range of steel products like Hot Rolled, Cold Rolled, Galvanized, Galvalume, Pre-painted Galvanised, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special Steel Bars, Rounds & Blooms.
Financial Performance
Its consolidated revenues increased from Rs 70,225 Crores (FY2018) to Rs 146,371 (FY2022) in the last 5 years.
Its consolidated profits increased from Rs 6,071 Crores (FY2018) to Rs 20,021 Crores (FY2022) in the last 5 years.
Its EPS increased from Rs 25.85 to Rs 85.96 in the last 5 years.
Positive Factors in this company
Strong revenue growth in the last 5 years
Strong margin growth in the last 5 years
Good annual EPS growth
Company with decreasing promoter pledge
Book value per share is increasing in the last few years
RoE and RoA is increasing in the last few years
FII and DIIs has increased their shareholding in this company
Negative Factors in this company
Company profits have fallen in the last 2 quarters and it posted loss in recent quarters.
MFs reduced the stake in recent times
Declining cash flow. Company is not able to generate net cash
Share Price Performance / Returns
1 Year – 16%
3 Years annualised returns – 42%
5 Years annualised returns – 24%
10 Years annualised returns – 25%
Also Read: 5 Mutual Funds with Highest SIP Returns in last 10 years
#5 – Cholamandalam Investments
Cholamandalam Investment & Finance Co. Ltd.began operations as a NBFC offering equipment finance to small and medium sized companies in South India.The company offers finance for a wide range of vehicles — HCVs, LCVs, cars, MUVs and cargo three-wheelers. They also cater to the needs of Corporate and retail consumers through its Retail and Corporate Finance wings. as well as provide Personal loans & home equity loans.
Financial Performance
Its consolidated revenues increased from Rs 5,558 Crores (FY2018) to Rs 10,140 (FY2022) in the last 5 years.
Its consolidated profits increased from Rs 917 Crores (FY2018) to Rs 2,158 Crores (FY2022) in the last 5 years.
Positive Factors in this company
Strong revenue growth in the last 5 years
Strong margin growth in the last 5 years
RoE and RoA is increasing in the last few years
Book value per share is increasing in the last few years
Company revenues are increasing every quarter in the past 4 quarters
FII and DIIs has increased their shareholding in this company
Negative Factors in this company
Company net profits and operating margin have declined in recent results
MFs reduced the stake in recent times
RoCE is declining in the last few years
Share Price Performance / Returns
1 Year – 38%
3 Years annualised returns – 33%
5 Years annualised returns – 22%
10 Years annualised returns – 29%
Disclaimer: This article is for educational purpose only. I do such analysis for my personal investment purpose and I post the research details on this blog with both pros and cons. Investments in equity / stocks is high risk and you can loose your capital. Please consult your financial advisor before taking any investment decisions.
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