Large-cap stocks are often considered as a category of stocks that can provide a consistent return for a long period of time, owing to their robust financials, strong fundamentals and capable management.
However, some of these blue chips actually turn out to be a multibagger and reward investors big time. Here’s a list of the top 3 stocks that ended up creating serious wealth for investors in the last 5 years.
Adani Enterprises Limited
Hate it or love it, Adani Enterprises Ltd (NS:ADEL) which is the flagship company of the Adani Group has been the biggest wealth creator for investors in the last 5 years. Despite an unprecedented selling spree in this counter after Hindenburg Research’s report alleging fraudulent activities on the group, the stock still turned out to be a clear winner on our list.
This is partly due to a sharp rebound of 144% from the 52-week-low. The company has risen to a market capitalization of INR 2,79,431 crores and has delivered a staggering return of 81.07% (CAGR) in the last 5 years. Simply, INR 100 invested in the stock 5 years back would have turned into INR 1,946 today.
Adani Power Limited
Adani Power Ltd (NS:ADAN) is another company from the Adani stable, having a market capitalization of INR 1,06,528 crores, making it the 50th largest listed company on the NSE. It is in the power generation business and trades at a single-digit P/E ratio of 9.93. In FY23, the company reported a staggering financial performance with a 35.8% YoY jump in revenue to INR 43,040.52 crores and a massive 118.3% increase in net income to INR 10,726.64 crores.
Interestingly, FII’s had no stake in the company by March 2022, which jumped sharply to 11.7% by March 2023. The stock has delivered a 5-year CAGR of 69.69%, making it the second-best large-cap performer in this time period.
Tube Investments of India Limited
Tube Investments of India Ltd (NS:TBEI) might be a surprising name for some of you as it may or may not be considered a large-cap. What am I saying? Well, the definition of a large-cap is the top 100 companies with the largest market cap, and with a market capitalization of INR 55,049 crores, Tube Investments of India is currently at the 100th spot in the list of top 100 companies, technically qualifying it as a large-cap (as of today).
The company is a part of Murugappa Group and is in the business of manufacturing cycles and mobility-based equipment. FIIs are holding a good stake of 28.92% in the company and the stock has delivered a dream return of 64.89% (the last 5-year CAGR). Also, if the market cap drops slightly from here, the stock might come back under the mid-cap category.
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