Investors are generally scared of investing in direct equity as we do not know which stock would perform well in the short term to medium term to long term. Even fundamentally good companies would take test and provide low or negative returns to investors for various reasons. What if there are stocks that provide consistent returns in last 1 year, last 3 years and last 5 years? Identifying such companies could be little difficult. In this article we would provide Top 5 Best Nifty50 Stocks to invest in 2022 that generated consistent returns in 1 to 5 years.
Also Read: Top 10 Dividend Yield Stocks to invest in 2022
About Nifty50 Index Stocks
NIFTY50 index is a well-diversified 50 companies index that reflects overall market conditions.
This Index is computed using free float market capitalization method.
How we filtered these Nifty 50 Stocks that generated consistent returns?
Here is the simple criteria that we used:
1) List of stocks from Nifty50 index as of today is taken as a first step. Stocks that were part of Nifty50 earlier in the last 1 to 5 years, however out of this index as of today are excluded.
2) Nifty 50 stocks that generated over 15% returns in the last 1 year are considered
3) Nifty 50 stocks that generated over 50% returns in the last 3 years are considered
4) Nifty 50 stocks that generated over 100% returns in the last 5 years are considered.
Means these stocks should have doubled in last 5 years.
List of Top 5 Best Nifty50 Stocks to invest in 2022
Here is the list of consistent performing Nifty50 stocks along with the returns (simple returns and not annualised).
| Company | 1 Yr | 3 Yr | 5 Yr |
|---|---|---|---|
| Titan | 42% | 85% | 378% |
| Reliance Industries | 35% | 102% | 307% |
| Bharti Airtel | 35% | 105% | 107% |
| Tata Consumer | 17% | 217% | 384% |
| Tech Mahindra | 16% | 58% | 191% |
Best Nifty Stocks to invest in 2022 – Financials and Share price details
Let us get info their financial performance and share price details.
#1 – Titan – CMP Rs 2,255
About the Company
Titan Company Limited is an Indian luxury products company that mainly manufactures fashion accessories such as jewellery, watches and eyewear.
Financial Performance
- Its consolidated revenues increased from Rs 16,119 Crores in FY18 to Rs 28,799 Crores in FY22.
- Its consolidated profits increased from Rs 1,104 Crores in FY18 to Rs 2,198 Crores in FY22.
Positive Factors in this company
- Strong revenue growth in the last 5 years
- Strong profit growth in the last 5 years
- Book value per share improving in the last 2 years
- Company with zero promoters pledge
- Company net cash flow and operating cash flow are rising
Negative or Risk Factors in this company
- Company long term costs are growing year on year
- ROE and RoA has declined in the last 2 years
- Company recent quarter results (Qtr ending Mar-22) indicate revenue and margins have declined compared to the previous quarter (Qtr ending Dec-21)
Share Price Performance
- Last 1 Year – 42% returns – 1 Lac turned 1.4 Lacs
- Last 3 years – 85% returns – 1 Lac turned 1.8 Lacs
- Last 5 years – 378% returns – 1 Lac turned 4.7 Lacs
Company has a strong financial track record. It has rewarded investors with share price appreciation too. Considering these factors, it is one of the Best Nifty Stocks to invest in 2022.
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#2 – Reliance – CMP Rs 2,665
About the Company
Reliance Industries is India`s largest private sector enterprise, with businesses in the energy and materials value chain.
The company works under different business segments:
- Exploration and Production,
- Petroleum Refining and Marketing,
- Petrochemicals,
- Textiles and
- Retail
Financial Performance
- Its consolidated revenues increased from Rs 391,677 Crores in FY18 to Rs 721,634 Crores in FY22.
- Its consolidated profits increased from Rs 36,021 Crores in FY18 to Rs 67,565 Crores in FY22.
Positive Factors in this company
- Strong revenue growth in the last 5 years
- Strong margin growth in the last 5 years
- Book value per share improving in the last 2 years
- Company with zero promoters pledge
- Company has low debt
- FII / FPIs have increased their stake in recent times.
Negative or Risk Factors in this company
- Company long term costs are growing year on year
- ROE is declining in the last 2 years
- Company not able to generate adequate net cash flow
Share Price Performance
- Last 1 Year – 35% returns – 1 Lac turned 1.35 Lacs
- Last 3 years – 102% returns – 1 Lac turned 2 Lacs
- Last 5 years – 307% returns – 1 Lac turned 4 Lacs
Company has a good financial track record. It has rewarded investors with share price appreciation too in short to medium term. Considering these factors, it is one of the Top and Best Nifty Stocks to invest in India in 2022.
#3 – Bharti Airtel – CMP Rs 699
About the Company
Company is Asias leading integrated telecom services provider with operations in India and Sri Lanka. Bharti Airtel has been at the forefront of the telecom revolution and has transformed the sector with its world-class services built on leading edge technologies.
Financial Performance
- Its consolidated revenues increased from Rs 95,468 Crores in FY18 to Rs 116,545 Crores in FY22.
- Its consolidated profits have increased from Rs 3,196 Crores in FY18 to Rs 6,870 Crores in FY22.
Positive Factors in this company
- Strong revenue growth in the last 5 years
- Strong margin growth in the last 5 years
- Company with zero promoters pledge
- FII / FPIs have increased their stake in recent times
Negative or Risk Factors in this company
- Company has incurred losses in FY20 and FY21
- Company has high interest payments compared to earnings
- Company with high debt
Share Price Performance
- Last 1 Year – 35% returns – 1 Lac turned 1.35 Lacs
- Last 3 years – 105% returns – 1 Lac turned 2 Lacs
- Last 5 years – 107% returns – 1 Lac turned 2 Lacs
Even this company has good financials. Shareholders have been rewarded with share price appreciation in the short to medium term. Considering these factors, it is one of the Best Nifty50 Stocks to invest for 2022.
#4 – Tata Consumer – CMP Rs 750
About the Company
Tata Consumer has a portfolio of 5 brands in the domestic market, namely Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini.
Tetley offers customized products to each country ranging from black, green, fruit and herbal teas, iced ready-to-drink teas and an extensive range of exotic speciality tea. It caters to Australian, Middle East, West Asia, North Africa, Poland, Russia and Kazakhstan markets.
The company is also into the strawberry preservation business. They offer vocational rehabilitation as well as an additional source of income to elder children.
Financial Performance
- Its consolidated revenues increased from Rs 6,815 Crores in FY18 to Rs 12,425 Crores in FY22.
- Its consolidated profits have increased from Rs 567 Crores in FY18 to Rs 1,078 Crores in FY22.
Positive Factors in this company
- Strong revenue growth in the last 5 years
- Strong margin growth in the last 5 years
- Company net cash flow improving
- Company with low debt
- Book value per share is improving in the last 2 years
Negative or Risk Factors in this company
- Mutual Funds reduced their shareholding in recent times
- Increasing trend in non core income
Share Price Performance
- Last 1 Year – 17% returns – 1 Lac turned 1.1 Lacs
- Last 3 years – 217% returns – 1 Lac turned 3.2 Lacs
- Last 5 years – 384% returns – 1 Lac turned 5.1 Lacs
Even this company has a good financial track record and share price appreciation too indicates that. Considering these factors, it is one of the Best Nifty Stocks to invest in medium to long term.
Also Read: Best Multibagger Stocks to invest in 2022 (doubled every 4 years)
#5 – Tech Mahindra – CMP Rs 1,164
About the Company
Tech Mahindra offers Information Technology (IT) services and solution for the telecommunications sector across the world. It is in the Top 5 IT companies in India.
Financial Performance
- Its consolidated revenues increased from Rs 30,772 Crores in FY18 to Rs 44,645 Crores in FY22.
- Its consolidated profits have increased from Rs 3,786 Crores in FY18 to Rs 5,630 Crores in FY22.
Positive Factors in this company
- Strong revenue growth in the last 5 years
- Strong margin growth in the last 5 years
- Company net cash flow improving
- Company with low debt
- Company has zero promoters pledge
- Book value per share is improving in the last 2 years
Negative or Risk Factors in this company
- Company costs are growing for long term projects
- Promoters reducing their share holding
- Increasing trend in non core income
Share Price Performance
- Last 1 Year – 16% returns – 1 Lac turned 1.1 Lacs
- Last 3 years – 58% returns – 1 Lac turned 1.6 Lacs
- Last 5 years – 191% returns – 1 Lac turned 2.7 Lacs
Company has a good financial track record. It rewarded investors with share price appreciation too. Considering these factors, it is one of the Top Nifty50 Stocks to invest in India.
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