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  5. Long-term wealth creators: Top 5 stocks with more than 20% CAGR since 1994

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Long-term wealth creators: Top 5 stocks with more than 20% CAGR since 1994

Upstox
By Upstox News Desk

3 min read | Updated on November 28, 2024, 14:41 IST

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SUMMARY

Infosys, Wipro, Pidilite Industries, Titan, and Asian Paints emerged as wealth creators on Dalal Street with a 20%+ CAGR over 30 years. These consistent compounders have delivered multifold returns for buy-and-hold investors.

Stock list

INFY
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ASIANPAINT
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TITAN
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PIDILITIND
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Markets have corrected over 6% and investors maybe considering buying on dips. But is that always the best strategy?

Major bluechip stocks are true wealth creators with strong track record of proven businesses and growth, which also gets reflected in the share price performance.

The SENSEX, India's oldest stock index, recorded a milestone of crossing the 85,000 mark this year. In the last 30 years, it has performed with a stable 10.89% compounded annual growth rate (CAGR). In 1994 SENSEX was trading at around the 6,000 mark.

The following five stocks were listed in 1994 and compounded by more than 20% CAGR. A CAGR of 20% suggests that the stock price doubles every 4-5 years. This includes most of the known companies, where Infosys tops the list with a CAGR of 29.42%. This huge rate of return suggests that the stock price has doubled every 3 years.

The following table shows the 30 years' CAGR returns and Absolute Returns of the top 5 stocks:

CompanyCAGR Returns in 30 YearsAbsolute Returns in 30 Years
Infosys Ltd29.42%2,28,876%
Wipro Ltd24.07%64,422%
Pidilite Industries Ltd23.83%60,792%
Titan Company Ltd22.18%40,678%
Asian Paints Ltd20.68%28,057%

Source: Chartink Note: The CAGR is calculated considering all corporate actions like bonus issues and stock splits.

Infosys Ltd

The company provides consulting, technology, outsourcing, and next-generation digital services to enable clients to execute strategies for their digital transformation. It is the second largest Information Technology company in India behind TCS. The stock price has given the highest CAGR returns of 29.42% in the last 30 years. In 1993, Infosys launched its initial public offering (IPO), which was initially undersubscribed. However, Morgan Stanley acquired a 13% equity stake.

Wipro Ltd

Wipro Ltd is a global Information technology, consulting and business process services (BPS) company. It is the 4th largest Indian player in the global IT services industry behind TCS, Infosys and HCL Technologies. The stock price has soared by 24.07% CAGR in the last 30 years. In 1945 it was founded as Western India Vegetable Products Limited in Amalner, Maharashtra by Mohamed Husain Hasham Premji. The company was listed on BSE in 1947 and expanded its business in software in 1990.

Pidilite Industries Ltd

Pidilite Industries is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY products and polymer emulsions in India. It has given 23.83% of CAGR return in the last 30 years. In 1954, Parekh started a small business in Mumbai that manufactured synthetic glue. In 1959, Parekh named the company Pidilite Industries Limited and began manufacturing industrial chemicals. Today, Pidilite is India's largest manufacturer of adhesives and sealants.

Titan Company Ltd

Titan Company Ltd is among India’s most respected lifestyle companies. It has established leadership positions in the Watches, Jewellery and Eyewear categories led by its trusted brands and differentiated customer experience. It was founded in 1984 as a joint venture between TATA Group and Tamilnadu Industrial Development Corporation (TIDCO). The stock has generated a CAGR of 22.18% in the last 30 years. It was listed on the BSE in 1987.

Asian Paints Ltd

Asian Paints is the largest home decor company in India. The 80+-year-old company has major brands like Asian Paints, Berger, Apco, etc, under its umbrella. The stock has given 20.68% of CAGR returns in 30 years to its shareholders. In 1942, the company was founded in a garage in Mumbai. In 1982, Asian Paints launched an IPO and was listed on the Bombay Stock Exchange (BSE).

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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