Have you ever wondered which stocks have delivered the highest returns in the last two decades in India? As an investor, knowing which companies have consistently outperformed the market and generated wealth for their shareholders is crucial.
After all, investing is all about maximizing returns, and if you need to invest in the right stocks, you could be missing out on substantial gains. In this blog post, we’ll explore the 11 highest-return stocks in India over the last 20 years and examine what makes them so unique.
Whether you’re a seasoned investor or a beginner looking to build your portfolio, this list is a must-read to learn about the companies that have generated massive wealth for their investors. So, let’s dive in and discover the secrets of these high-return stocks.
Criteria used to select the top 11 highest return stocks:
The selection of India’s top 11 highest-return stocks was based on a rigorous methodology that considered several factors. The criteria for selecting these stocks included their average annual returns over the last two decades, consistency of returns, market capitalization, and financial stability.
These criteria were chosen because they provide a comprehensive picture of a company’s overall performance, considering its past returns and potential for future growth. Investors can increase their chances of earning significant returns while minimizing risks by focusing on stocks that consistently outperform the market and demonstrate financial stability.
Additionally, these criteria provide a well-rounded view of the companies and industries that have been the most successful in India over the last 20 years, making this list a valuable resource for any investor looking to build a diversified and profitable portfolio.
Top 11 Highest Return Stocks last 20 years in India:
The stock market is a great way to make money and increase your wealth, with the potential for high returns on investment. With so many stocks available in India, it can be difficult to find the ones that offered the highest returns.
To help investors find these lucrative stocks, we have compiled a list of the top 11 highest return stocks in the last 20 years in India.
1. Bajaj Finance Ltd.
Bajaj Finance Ltd. is one of India’s most successful financial services companies, with a track record of delivering impressive returns to its investors. Originally incorporated as Bajaj Auto Finance Limited, the company initially focused on providing two and three-wheeler finance before expanding its portfolio to include other financial services.
The company’s success can be attributed to its focus on delivering innovative financial products and services and its commitment to maintaining solid financials and risk management practices. Since its initial public offering in 1998, Bajaj Finance Ltd. has experienced exponential growth, with its assets under management reaching an impressive Rs. 52,332 crores.
Over the last 20 years, the stock price of Bajaj Finance Ltd. has delivered an astounding return of 1,61,704%, making it one of the top-performing stocks in India. This means an investment of Rs. 1,00,000 in Bajaj Finance Ltd. 20 years ago would be worth an incredible Rs. 16,18,04,000 today.
2. Titan Industries Ltd.
Titan Industries Ltd. is a leading Indian company specialising in manufacturing fashion accessories such as watches, jewellery, and eyewear. Part of the Tata Group and established as a joint venture with TIDCO, the company has grown significantly since its inception in 1984 under Titan Watches Limited.
Over the years, Titan has diversified its product portfolio to include jewellery and eyewear, with Tanishq and Titan Eyeplus, respectively. Today, Titan is India’s largest branded jewellery maker, with over 80% of its revenues coming from this segment. In addition, it is the fifth-largest watch manufacturer in the world as of 2019.
With a 6% market share in India’s jewellery market as of 2022, Titan is a formidable player in the industry. The company’s stock price has delivered an impressive return of 135,267% over the last 20 years, which means that an investment of Rs. 1,00,000 in Titan Industries Ltd. two decades ago would be worth an incredible Rs. 13,52,67,000 today.
The company’s success can be attributed to its focus on delivering high-quality products that cater to the evolving needs of consumers.
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MRF, also known as Madras Rubber Factory, is India’s largest tyre manufacturing company. Headquartered in Chennai, Tamil Nadu, the company was established in 1946 and went public on 1st April 1961. Since then, MRF has expanded its operations globally and established an office in Beirut, Lebanon, in 1964 to develop the export market.
MRF was the first Indian company to export tyres to the United States in 1967. Today, the company is recognized for its high-quality tyres that cater to a wide range of vehicles, from two-wheelers to heavy trucks.
With an impressive return of 17176.6% over the last 20 years, an investment of Rs. 1,00,000 in MRF Ltd. would be worth a staggering Rs. 1,72,76,600 today. MRF’s success can be attributed to its commitment to innovation, product quality, and customer service, which has helped the company maintain its leadership position in the industry.
4. Asian Paints Ltd.
Asian Paints Ltd. has been dominant in the Indian paint market for many years. The company’s success can be attributed to its strong focus on innovation, quality, and customer satisfaction.
With a diverse product portfolio that includes paints, coatings, home décor products, and bath fittings, Asian Paints has been able to cater to a wide range of customers, from individual homeowners to large commercial businesses.
In recent years, the company has also been expanding its presence through strategic acquisitions, such as acquiring a majority stake in Weatherseal Fenestration and a 49% stake in Obgenix Software.
These moves are expected to enhance the company’s product offerings further and help it maintain its position as a market leader. Over the last 20 years, the stock price of Asian Paints Ltd. has given a staggering return of 15611.1%, which means that an investment of Rs. 1,00,000 would have been worth Rs. 1,57,11,100/- today.
5. HDFC Bank Ltd.
HDFC Bank is a name that needs no introduction in the Indian banking industry. With a wide range of products and services catering to individuals, businesses and corporates, HDFC Bank has become a household name for many.
The bank was established in 1994 and has since grown into India’s largest private-sector bank in assets. In addition, HDFC Bank is also the 10th largest bank in the world by market capitalisation. As of June 2022, HDFC Bank has a distribution network of 6,378 branches across 3,203 cities, making it one of the most accessible banks in India.
With over 150,000 employees, HDFC Bank is also one of the largest employers in India. Over the last 20 years, the stock price of HDFC Bank has given a return of 6992.67%, which is a testament to the bank’s success and commitment to delivering value to its investors.
6. Britannia Industries Ltd.
Britannia Industries is a household name in India, known for its delicious biscuits and snacks. With a history of over 100 years, Britannia has cemented itself as one of India’s leading food companies, with annual revenues exceeding Rs. 9000 crores.
The company’s diverse product portfolio includes biscuits, bread, cakes, rusk, and dairy products such as cheese, milk, and yogurt. Britannia’s product range includes popular brands such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold, which have become household names nationwide.
Britannia Bread is the largest brand in the organized bread market, with an annual turnover of over 1 lakh tons in volume and Rs. 450 crores in value. Britannia has also made significant strides in promoting healthy eating by becoming India’s first Zero Trans Fat Company.
The stock price of Britannia has been on an upward trajectory, delivering a return of 4144.23% during the last 20 years, which translates to an investment of Rs. 1,00,000 becoming Rs. 42,44,230 today.
7. Reliance Industries:
Reliance Industries Limited is a well-known name in the Indian business industry. The company’s diversified businesses include energy, petrochemicals, retail, telecommunications, and textiles.
It is considered one of India’s largest and most profitable companies, with a workforce of over 300,000 employees worldwide. Reliance Industries is also India’s largest publicly traded company by market capitalisation and revenue.
The company’s promoter group, the Ambani family, holds 50.00% of the total shares, while public shareholders, including foreign institutional investors and corporate bodies, hold the remaining shares.
The stock price of Reliance Industries has given a return of 4084.21% during the last 20 years, indicating that an investment of Rs. 1,00,000 would have turned into Rs. 41,84,210/- today. Reliance Industries has established itself as a pioneer in the Indian business industry and is continuing to grow its diverse portfolio of businesses.
8. HDFC Ltd.
Housing Development Finance Corporation Limited (HDFC) has significantly shaped the Indian housing finance sector. Founded in 1977, HDFC has been a pioneer in providing housing finance to Indians.
It has since diversified its services to banking, life and general insurance, asset management, venture capital, realty, education loans and deposits. HDFC Standard Life Insurance became India’s first private-sector life insurance company in 2000 after receiving registration from IRDA.
HDFC is in countries such as Kuwait, Oman, Qatar, Saudi Arabia, Singapore, United Arab Emirates and the United Kingdom. HDFC is also a significant shareholder in HDFC Bank, owning 26.14% of its shares.
The stock price of HDFC has given a return of 3791.18% during the last 20 years, meaning that an investment of Rs. 1,00,000 would have been worth Rs. 38,91,180/- today. HDFC remains a key player in India’s financial services sector and is committed to providing innovative and accessible financial solutions to its customers.
9. TCS Ltd.
Tata Consultancy Services (TCS) is a global IT service and consulting leader based in Mumbai, India. With 150 locations across 46 countries, TCS is known for delivering high-quality, cost-effective solutions to some of the world’s largest corporations.
The company is part of the Tata Group, one of India’s oldest and most respected business conglomerates. TCS has over 600,000 employees, making it one of the largest employers in the world. TCS is the second-largest company in India by market capitalisation and is among the most valuable IT service brands worldwide.
In 2021, TCS achieved a market capitalisation of US$200 billion, making it the first Indian IT tech company to reach this milestone. TCS’s stock price has delivered a return of 2685% during the last 20 years, which is a testament to the company’s strong performance and consistent growth.
10. ITC Ltd.
ITC Limited is one of India’s leading conglomerates with a diversified business presence across various sectors. The company is headquartered in Kolkata and operates in 13 businesses across 5 segments, including FMCG, hotels, software, packaging, paperboards, speciality papers, and agribusiness.
ITC’s products are exported to 90 countries and are available in 6 million retail outlets. With an annual turnover of US$10.74 billion in 2019-20 and a market capitalization of US$35 billion, ITC is one of India’s largest companies. As of December 2022, the company’s market cap stood at ₹4,22,447.30 crore.
ITC has over 36,500 employees working across more than 60 locations in India. Its equity shares are listed on the Bombay Stock Exchange (BSE), National Stock Exchange of India (NSE), and Calcutta Stock Exchange (CSE), while its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.
ITC is also a constituent of two major stock market indices in India – BSE SENSEX and NIFTY 50 of NSE. Over the last 20 years, the stock price of ITC has given a return of 2650%, making it a popular choice for investors.
11. Infosys Ltd.
Infosys Limited is a leading Indian multinational information technology company that offers a range of business consulting, information technology and outsourcing services. The company has its headquarters in Bangalore and was founded in Pune.
Infosys is considered the second-largest Indian IT company by 2020 revenue figures, after Tata Consultancy Services, and is also ranked as the 602nd largest public company in the world according to the Forbes Global 2000 ranking.
In August 2021, Infosys became the fourth Indian company to achieve a market capitalization of $100 billion. The company was the first Indian IT company to be listed on NASDAQ. Over the last 20 years, the stock price of Infosys has provided a return of 2541.07%, indicating that an investment of Rs. 1,00,000 in the company 20 years ago would have turned into Rs. 26,41,070 today.
Lessons Learned from these Top 11 Stocks:
The top 11 highest-return stocks in the last 20 years in India have some common themes and trends that can provide valuable insights to investors. One common theme is that most of these companies are from the IT or financial sectors.
This highlights the potential of these sectors to provide significant returns on investments over the long term. Additionally, most of these companies have a strong presence in the global market, which indicates that companies with a global reach are more likely to provide higher returns.
Another trend is that most of these companies have a consistent track record of growth, indicating the importance of investing in companies with sound business models and a clear vision for the future.
Furthermore, it is also important to note that most of these companies have consistently paid dividends to their shareholders, which is a good indicator of a company’s financial health.
Overall, investors can learn from these stocks that investing in strong and consistent performers with a global presence and a sound business model can lead to significant returns over the long term.
The Risk and Challenges in Investing High Return Stocks:
While investing in high-return stocks can be rewarding, it’s important to note that there are potential risks and challenges to consider. One of the most significant risks is market volatility, which can lead to sudden drops in stock prices.
Additionally, many of these high-return stocks are in sectors subject to regulatory changes or technological disruption, which can impact profitability. Investors should also know the risk of overvalued stocks, where the market has priced the stock higher than its actual value.
To mitigate these risks, investors should thoroughly research the companies and sectors they invest in and diversify their portfolios across different sectors and asset classes. It’s also essential to have a long-term investment horizon and avoid making hasty decisions based on short-term market fluctuations.
Ultimately, investing in high-return stocks requires careful consideration of both the potential rewards and risks.
Investing in the stock market can be a risky but rewarding endeavour. These 11 highest-return stocks in the last 20 years in India demonstrate that some companies have consistently delivered high returns to their shareholders.
However, it is essential to remember that past performance does not guarantee future success. As with any investment, conducting thorough research and analysis is essential before making any decisions.
Additionally, while investing in stocks can provide the potential for high returns, it is not the only way to invest your money. Diversification across different asset classes and investments can help mitigate risk and increase overall returns.
Ultimately, the decision to invest in stocks should be made with caution, prudence, and a long-term investment strategy in mind.
What is the significance of looking at the returns of stocks over 20 years?
Looking at the returns of stocks over 20 years provides a long-term view of how a company has performed. It helps to identify companies that have consistently performed well over a long period, which indicates the strength and sustainability of the company’s business model.
What is the risk involved in investing in high-return stocks?
Investing in high-return stocks involves a high level of risk as the stocks may be volatile and subject to significant price fluctuations. It is essential to conduct thorough research and analysis of the company and the market before investing in any stock.
Can investors expect similar returns from these stocks in the future?
It is not guaranteed that these stocks will continue to provide similar returns. The stock market is unpredictable, and the performance of a stock is subject to various factors such as economic conditions, company performance, and market trends.
How do these high-return stocks compare to other investment options?
Compared to other investment options such as fixed deposits, bonds, and mutual funds, these high-return stocks provide a potentially higher return on investment. However, they also involve a higher level of risk.
Should I invest in all the top 11 high-return stocks?
Investing in all the top 11 high-return stocks may not be a suitable strategy as it may lead to an overconcentration of your portfolio in specific sectors or companies. Diversifying your investment portfolio and conducting thorough research before making any investment decisions is essential.