Most non-banking financial institutions (NBFCs) returned investors a handsome amount in five years, data from Capitaline shows. In a sample of the top 12 stocks with a market capitalisation of over Rs 10,000 crore, that returned investors more than 500% in a span of five years, NBFCs like Bajaj Finance, GRUH Finance, Cholamandalam Finance turned out multibaggers returning between 500% to 1100%. On the other hand, pharmaceutical stocks like Ajanta Pharma and Aurobindo Pharma earned investors over 3500% and 750% respectively since June 2011.
Ajanta Pharma tops the league tables. The pharmaceutical company, which traded at Rs 41 apiece five years ago, is now trading at Rs 1,537.9 per share, almost 3,583% higher. According to India Infoline, the stock currently trades at 30.2 times its estimated FY17 earnings. The company has witnessed a robust 20% and 10% growth in exports in the last two years, the brokerage observed. The domestic business revenues saw a 5% y-o-y increase, while its export saw a y-o-y rise of 31% in its FY16 revenues. The company focuses on therapeutic segments such as opthalmology, dermatology, cardiology and pain management.
Among NBFCs, Bajaj Finance returned investors more than 1,100%. The stock traded at Rs 603 per share in June 2011 and last traded at Rs 7,640 apiece on Wednesday. According to Motilal Oswal, Bajaj Finance has been continuously increasing its market share in the consumer business, though a higher share of its incremental growth is driven by the low-yield mortgage business, which could exert pressure on its margins. The stock currently trades at 4.7 times and 3.9 times its estimated FY17 and FY18 estimated price to book value, respectively.
Textile companies like Welspun India and Indo Count Industries have also returned investors more than 2000%. Mindtree, Eicher Motors, Amara Raja Batteries are other firms that have given investors good returns over the last five years. Shree Cement and Ramco Cement have returned 672% and 510%, respectively during the same period.
