These four stocks have doubled investor wealth in the last three years
- The benchmark Nifty was at 9,600-level in May 2017, nearly three years ago from now. Since then, it has delivered returns of just 4.4%, barely beating the interest rate on savings bank accounts.
- During the same period, four stocks – Nestle, RIL, Britannia and HUL have doubled investor wealth despite the COVID-19 crisis impacting them.
- Nestle was the top performer, delivering an increase of almost 150% since May 2017.
AdvertisementThe COVID-19 crisis has caused the Indian economy to shut down for more than two months, wiping out lakhs of crores of investor wealth in the process. However, four companies have weathered the storm and have doubled the investor wealth in the last three years.
The four companies – Britannia, Nestle, Hindustan Unilever (HUL) and Reliance Industries (RIL) have gained at least 100% between May 2017 to now.
For context, the benchmark Nifty was at 9,621 on May 31, 2017. It closed at 10,046 on June 9. During this period, crossed 12,000 and came down again.
Nestle led with an increase of almost 150% in investor wealth
Food and beverages conglomerate Nestle led the charge with an increase of 150% in investor wealth. Its share price rose from ₹6,657 in May 2017 to ₹16,570 as of market close on June 9.
Nestle’s rapid growth was fuelled by the launch of 71 products since the Maggi ban in 2015 and strengthening distribution, according to experts.
RIL’s growth was driven by its foray into the telecom sector
The Mukesh Ambani-led RIL has also made big gains over the last three years, primarily driven by its foray into the telecom sector. In the last seven weeks alone, Ambani has raised over ₹1 lakh crore via investments in Jio Platforms.
Ambani’s claim of RIL doubling investor wealth every 2.5 years remains true – RIL was valued at ₹5 lakh crore in 2017, which has now increased to ₹10.39 lakh crore as of market close on June 9, 2020.
Britannia bakes biscuits away to deliver consistent ‘multi-bagger’ performance
AdvertisementBiscuit-maker Britannia is baking biscuits away to increase investor wealth. Since 2017, it has doubled investor wealth, cornering a market cap of ₹8.2 lakh crore.
Over the past decade, it has increased investor wealth by 2,000%.
HUL’s preparedness for changes in consumer demands keeps its investors happy
HUL, an 87-year old company, remains agile and prepared to address changes in consumer demands. This has kept it on a growth path and led to an increase in investor wealth over the course of its history – so much so that its parent company Unilever increased its stake from 52.5% to 67.3% in 2019.
Investors remain happy with HUL as its shares have seen a jump despite the company issuing a profit warning.
Inside India’s ₹50,000 crore scheme to woo electronics manufacturing including smartphones
Yes Bank is looking to raise ₹10,000 crore through FPO – with Kotak Securities, Axis Capital, and SBI Capital reportedly to be key players
SEBI orders special audit of Franklin’s six debt funds – with ₹30,800 crore wealth locked in, wary investors demand reopening
Popular on BI
- Realme 10 Pro+ 5G Review: An all-round value smartphone
- Sensex snaps 4-session losing run led by PSU banks
- The future is connected: 80% of traditional TV viewers want to switch in a year says Finecast Kantar
- Electric-vehicle financing startup Vidyut raises $4 million in first round of funding
- RIL, Adani Enterprises are the biggest and most consistent wealth creators: Motilal Oswal