Godrej, Eicher Motors, HUL provided good returns for last 7 years continuously
8 July 2016
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While benchmark indices Sensex and Nifty saw many ups and downs in the last five years, there remained 10 stocks in the BSE-100 pack that stood the test of the time and offered positive returns consecutively in the five calendars since 2011.

The list included three gems that kept shining for at least past seven years.

Data showed Eicher Motors, the maker of bikes brand Enfield, has advanced a whopping 1,164 per cent since 2011, offering positive returns successively in the five-year period. The stock traded at Rs 19218 on Thursday, recording a 118 per cent CAGR in the five year period.
Tractor maker Mahindra & Mahindra (M&M) gained 150 per cent during the period. In calendar 2016, the stock is up over 12 per cent. 

Justifying with their defensive tag, three FMCG companies such as Godrej Consumer (GCPL), Dabur India and Hindustan Unilever delivered 304 per cent, 214 per cent and 115 per cent, respectively in the period mentioned.

Indusind Bank (389 per cent), Kotak Mahindra Bank (247 per cent), Asian Paints (282 per cent), UPL (348 per cent) and Zee Entertainment (281 per cent) remained the other stocks that have been flying high for five consecutive years. For 2016, year-to-date returns are considered.
Justifying with their defensive tag, three FMCG companies such as Godrej Consumer (GCPL), Dabur India and Hindustan Unilever delivered 304 per cent, 214 per cent and 115 per cent, respectively in the period mentioned.

Indusind Bank (389 per cent), Kotak Mahindra Bank (247 per cent), Asian Paints (282 per cent), UPL (348 per cent) and Zee Entertainment (281 per cent) remained the other stocks that have been flying high for five consecutive years. For 2016, year-to-date returns are considered.

Justifying with their defensive tag, three FMCG companies such as Godrej Consumer (GCPL), Dabur India and Hindustan Unilever delivered 304 per cent, 214 per cent and 115 per cent, respectively in the period mentioned.
Indusind Bank (389 per cent), Kotak Mahindra Bank (247 per cent), Asian Paints (282 per cent), UPL (348 per cent) and Zee Entertainment (281 per cent) remained the other stocks that have been flying high for five consecutive years. For 2016, year-to-date returns are considered.

Eicher Motors

The first on the list stands Eicher Motors, India's top-end bike maker. The stock of the company offered a stratesphoric 2745 per cent return in the last seven years. Thanks to a pent-up demand in the aspirational luxury bike segment, the company could showcase a stellar performance on a sustained basis. 

Over calander year 2011 to FY16, Eicher generated 83 per cent of funds from operating activities, while other income contributed 6 per cent. Superior capital allocation led to Eicher's Return on cash employed (RoCE) improving consistently from 21 per cent in CY11 to 34 per cent in FY16.   

In fiscal year 2016, the company's consolidated revenue grew by 43.6 per cent (annualized) to Rs 15,690 crore (15 months), while EBITDA margin expanded by 300 bps to 16 per cent.

The company also generated highest ever free cash flow (FCF) of Rs 1,210 crore despite high capex of Rs 1,060 billion in FY16 thanks to Royal Enfield's strong performance. 
Godrej Consumer and Hindustan Unilever
Godrej Consumer and HUL are consumer staples with strong brands and great management in place. These ingredients are historically significant and essential for sustained wealth creation.

However, HUL's March quarter earnings came in below expectations. Following which, brokerage Motilal Oswal said rural demand pressures and continued deflationary environment will continue to remain the key near-term risks for the company.

Godrej Consumer Products looks all set to continue with its gaining spree as the company is scouting for acquisitions in Indonesia and has shared 'a wish list of assets' with various investment bankers as part of its inorganic growth strategy in the South East Asian nation. Indonesian business is the largest business for GCPL outside India.