Udabur Stock：Consistent compounders! 12 stocks with over 20% return in each of last 5 years

As the calendar year 2023 nears its end, we ran a screener to filter out stocks that have a solid history of delivering consistent returns. Considering stocks with a market capitalisation at least Rs 1,000 crore, Tata Group's retailer Trent is the only counter to have given at least 5% return in each of the last 10 years.

When we narrowed down the filter to look for stocks that have given at least 20% return in each of the last 5 years, we found 12 counters. Here's the full list:

1) Varun Beverages

PepsiCo bottler Varun Beverages, which has recently announced the acquisition of The Beverage Company in South Africa, has given at least 20% return in each of the calendar years since 2017. The multibagger stock was listed in November 2016.

Following its South Africa foray, CLSA has upgraded the stock to buy and raised target price from Rs 1,070 to Rs 1,419 to reflect faster inorganic growth.

2) Trent

Trent, which had recently crossed the Rs 1 lakh crore market capitalisation milestone, has more than doubled in 2023. A structural story on the growing organised apparel market in India, Trent has its own league of fans but expensive valuations keeps many investors on the sidelines.

"Trent's valuation implies a premium, but its success with Westside’s scale-up underpins our belief that it can replicate the same at Zudio," Nuvama said.

3) Cholamandalam Investment and Finance Company

The NBFC is also among the consistent winners in the largecap space in the last 5 years. Barring a 2% downside in 2018, Cholamandalam Investment has, in fact, been giving positive returns in 9 out of the last 10 years.

"CIFC will continue to grow faster than its peers over the medium term, aided by a diversified product suite and a gradual improvement in market share. Given its focus on diversification, we believe CIFC could enter new retail product segments in the near-to-medium term," Motilal Oswal said.

4) Tube Investments of India

Tube Investment of India, which is a flagship company of the Murugappa group, has given at least 25% annual return since 2018. The company is one one of the leading product manufacturers for major industries such as auto, rail, construction, mining, etc.

In the September quarter, its consolidated revenue grew by 14% YoY, driven by industrial, metal and engineering segments.

5) Authum Investment & Infrastructure

Shares of Authum Investment have grown around 260% so far in the calendar year 2023. In the last 5 years, the stock has given multibagger returns 4 times.Udabur Stock

6) Esab India

Welding equipment company Esab India has also been giving consistent double-digit returns since 2017.

7) Religare Enterprises

Religare Enterprises, which has been in the middle of a takeover tussle between the Burman family and Religare’s current senior management led by Chairperson Rashmi Saluja, has been a consistent compounder in the last 5 years.

8) Jyoti Resins & Adhesives

Smallcap Jyoti Resins is up only about 23% in 2023 but in the preceding four years the counter has given multibagger returns annually.

9) Praveg

The little-known smallcap Praveg Ltd, which runs luxury resorts, has given an impressive 144% return in 2023. It had recently announced a work order for developing tents at Agatti Island in Lakshwadeep. With the addition of this resort, Praveg will now have 9 properties in operation and 10 under development.

10) Hardwyn India

Shares of multibagger Hardwyn India, which makes architectural hardware and glass fittings, continued its winning run in 2023 after being a five-bagger in 2022. The stock is up about 55% YTD.

11) Gujarat Themis Biosyn

In the last 10 calendar years, Gujarat Themis Biosyn has given negative returns only twice and at least 20% return in all the last 10 years.

12) Refex IndustriesVaranasi Investment

Shares of Refex Industries, which is into the business of refrigerant gases in air conditioning equipment, has more than doubled in 2023.

What should investors doAgra Investment?

As they say, past performance may not be reflective of the future. But studying past patterns can help you identify potential winners.

Following the sharp rally seen in the broader market, analysts say largecaps offer offer better risk adjusted returns vis-à-vis mid/small caps led by higher earnings growth and relatively better valuations.Indore Investment

HDFC Securities prefers largecap banks, industrial and real estate, power, autos, pharma, OMCs, gas, and capital markets. In a note to clients, the broking firm has advised clients to pick Infosys, Axis Bank, GAIL, Adani Ports, JSW Steel, Grasim, Bajaj Finserv, InfoEdge and Pidilite to accumulate in 2024.

Global broking firm Jefferies, which expects Nifty to hit fresh peaks in 2024, likes domestic cyclicals vizMumbai Wealth Management. banks, power, telecom, industrial and property.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

New Delhi Investment