Stock Analysis, IPO, Mutual Funds, Bonds & MoreFinancials, auto and consumer companies led the outperformance during this period.
May 23, 2019, 08.11 AM IST
Getty ImagesBajaj Finance has been the biggest wealth creator among BSE 100 constituents over the last five years due to consistent earnings performance.The Narendra Modi-led government’s victory in 2014 triggered a bull run in Indian stock market that has led to the Nifty gaining 63% in the last five years. Financials, auto and consumer companies led the outperformance during this period. With the outcome of the national polls due today, ET takes a look at some of the top performers during the NDA regime from the BSE 100 index and details their outlook going ahead.BAJAJ FINANCECMP: Rs 3,447.70 Change in last 5 years: 1,852%Bajaj Finance has been the biggest wealth creator among BSE 100 constituents over the last five years due to consistent earnings performance. “The company has grown at a 35-40% CAGR for eight-nine-years in a low and its liability management has been strong. Profit has grown 10-12 times in the last eight-nine years,” said Digant Haria, AVP-research at Antique Stock Broking. Haria believes premium valuation of can sustain going forward till business execution stays strongBRITANNIA INDUSTRIESCMP: Rs 2,851.25 Change in last 5 years: 560%Britannia did well in the last five years since new CEO Varun Berry was appointed in March 2014, just before the NDA was elected, said analysts. “He implemented a lot of strategy changes that resulted in margin expansion and return ratio expansion. The stock was adequately rewarded for this,” said Deepak Jasani, head of research at HDFC Securities. Jasani said the stock may not repeat its strong show in the next five years due to stretched valuations and a high base.TITAN COMPANYCMP: Rs 1,240.45 Change in last 5 years: 304%The implementation of GST and lower corporate governance levels in other listed jewellery stocks made investors shift to Titan, said independent market expert Ambareesh Baliga. “Titan’s corporate governance was never under any question. Financial performance should sustain but stock may not outperform. The stock is not cheap, it will perform in line with the consumer space,” said Baliga.HAVELLS INDIACMP: Rs 756.35 Change in last 5 years (%): 302%Jasani of HDFC Securities said Havells has transformed itself from an industrial to a consumer facing company with strong focus on brands, mass premium markets, innovation and strong distribution across the country. “Investors recognised the moat in their business and pushed up the stock prices,” said Jasani. He believes the stock may not repeat its superlative performance in the next five years as valuations are high.PIDILITE INDUSTRIESCMP: Rs 1,212.30 Change in last 5 years: 289%Demand revival, entry in new markets and adjacent categories, and anticipated demand shift from unorganised to organised players are likely to boost Pidilite’s revenue and earnings, said Abneesh Roy, senior vicepresident-institutional equities at Edelweiss Securities. Roy is optimistic on Pidilite Industries – which is a market leader in the adhesives segment, due to anticipated demand recovery and market leadership.PAGE INDUSTRIESCMP: Rs 22,526.8 Change in last 5 years: 280%Page has underperformed in the last one-and-a-half years because of expensive valuation, consumer slowdown and margin pressure, it is one of the outperformers in the last five years, said Sanjiv Bhasin, executive VP-markets and corporate affairs at IIFL. “The management is very competent and the brand value of Jockey is immense. It is one of the best consumer companies in the midcap space,” said Bhasin.BIOCONCMP: Rs 519.6 Change in last 5 years: 263%India’s largest bio-pharma company Biocon is expected to perform well going ahead as well, said analysts. HSBC expects biosimilars momentum to continue for Biocon on gradual launches, pick up in the US and the EU, and ongoing traction in emerging markets. “...progress on the biosimilars regulatory front in developed markets and launches in the developed as well as emerging markets are likely to be key levers for the company.”HDFC BANKCMP: Rs 2405.1 Change in last 5 years: 199%Investor favourite HDFC Bank’s profit has grown at a compounded rate of 20.6% over the last five years. “Considering the healthy balance sheet growth, superior asset quality and management, the bank is well poised to deliver consistently with margin leadership and robust return ratios. It remains a portfolio stock with premium valuations,” said ICICIdirect, which sees the stock at Rs 2,700 in the next one year.KOTAK MAHINDRA BANKCMP: Rs 1495.50 Change in last 5 years: 230%Another consistent performer from the banking space over the last five years is Kotak Mahindra Bank which Antique Stock Broking recently called ‘stock of all seasons’.”Kotak Mahindra Bank is currently trading at a P/B multiple of 5.7 times/4.9 times on FY20/ FY21 book value and we expect the premium valuation of the bank to continue on back of its superior asset quality, high ROE and balance sheet growth well supported by strong performance of itsEICHER MOTORSCMP: Rs 21,221.85 Change in last 5 years: 233%After rallying sharply over the years, the stock may face headwinds going ahead. There seems to be brand fatigue for Royal Enfield in metro cities which is visible in sharp moderation in same store sales, said HSBC. “The stock is facing sector headwinds as well as product headwinds. It could underperform going forward,” said independent market expert Ambareesh Baliga.ASIAN PAINTSCMP: Rs 1,366.75 Change in last 5 years: 155%Although the stock trades at 50.2 times one-year forward earnings, having gained over 150% in the last five years, analysts are still bullish on the stock. “Given strong volume growth visibility for paints in the medium term and the competitive advantages of Asian Paints, we believe the current valuations present a good buying opportunity,” said UBS in a note recently.Commenting feature is disabled in your country/region.Browse CompaniesABCDEFGHIJKLMNOPQRSTUVWXYZ|123456789
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