Despite global concerns and domestic slowdown, large-cap stocks have remained safe bets for equity investors over the years. According to analysts, large-cap stocks are generally fundamentally strong and trade with a range, which is safer than a number of midcap-and-smallcap stocks. While, midcap and smallcap stocks may give higher returns in some cases, the risk of downside is far greater than safe largecaps, they added.
In the last 1 year, when the Indian markets were very volatile given poor earnings, liquidity crunch, political development, and global concerns, the S&P BSE Midcap and BSE Smallcap indices declined over 15 and 20 percent, respectively, while the BSE Largecap index only saw a 3 percent fall during the period.
Volatility levels have been higher in mid-and-small-cap indices, as market sentiment remains exposed to the slowdown in the economy, concerns around liquidity woes for NBFCs and a slowdown in consumption on the domestic front.
In the last 10 years, 9 largecap stocks rallied between 1,000-16,000 percent. These included Bajaj Finance, Eicher Motors, Bajaj Finserv, Pidilite Industries, Titan, Britannia, IndusInd Bank, Shree Cement, and Asian Paints.
Bajaj Finance was the top gainer among the largecap stocks, up over 16,000 percent in the past decade. The stock has been a consistent performer for the investors with over 1300 percent gain in the last 5 years, and 27 percent in 2019.
The stock has also shown a gradual rise in its net profit in this time, from Rs 33 crore in FY09 to Rs 3,995 crore in FY19.
Eicher Motors is another all-time favourite stock of the investors, up nearly 4,000 percent in the last 10 years. The stock has risen from around Rs 400 in 2009 to over Rs 17,000 in 2019. Bajaj Finserv has also risen over 2400 percent in 10 years, from Rs 280 in 2009 to over Rs 7,200 in 2019.
Another multibagger stock was Pidilite Industries, which rose over 1,800 percent in the decade. The Fevicol maker Pidilite Industries bucked the broader consumption growth moderation trend in June-quarter earnings and reported a healthy overall performance with revenue rising in double-digits and margin expanding on the back of benign cost environment.
"Pidilite has a proven track record and should be kept on the radar for accumulation during market corrections at current valuations," analysts suggest.
Titan is another top pick by investors with the stock surging around 1700 percent in 10 years. The stock has risen over 200 percent in the last 10 years and 15 percent in 2019. The company reported strong growth in the fiscal year 2018-19 and gave a robust outlook for the next fiscal. Last week Titan said that it expects to achieve 20 percent revenue growth despite muted industry demand growth.
Apart from these, Britannia added around 1400 percent, IndusInd Bank advanced over 1350 percent, Shree Cement rose over 100 percent and Asian Paints was up over 100 percent in the last 10 years. Other largecaps like TCS, Kotak Bank, HDFC Bank, HUL, Dabur also gained over 500 percent each.
Meanwhile, in the midcap segment, Ajanta Pharma gained the most in 10 years, around 8200 percent (less than the top gainer in the largecap space). Other gainers included Page Industries, Gruh Finance, Havells India, Balkrishna Industries, Natco Pharma, and Berger Paints, up between 2000-3000 percent.
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