Top 10 most consistent wealth creators during 2009-19

SUMMARY

According to the Motilal Oswal 24th Annual Wealth Creation Study 2019, IndusInd Bank has emerged the Most Consistent Wealth Creator by virtue of recording the highest Price CAGR of 49 percent over the 10-year period 2009 to 2019. Here is the list of the top ten Most Consistent Wealth Creator since 2009.

By Ankit Gohel Dec 19, 2019 3:58:39 PM IST (Updated)

IndusInd Bank has emerged the Most Consistent Wealth Creator with the highest price CAGR of 49 percent over the 10-year period 2009 to 2019. The price to earnings (P/E) ratio was 33x in 2019, compared to 7x in 2009. Return on Equity (RoE) in 2019 was 33 percent as against 7 percent in 2009.

Pidilite Industries ranked second in the list of Most Consistent Wealth Creator with price CAGR of 40 percent over the 10-year period 2009 to 2019. The price to earnings ratio was 67x in 2019 versus 19x in 2009. RoE in 2019 stood at 23 percent as against 16 percent in 2009.

Occupying the third position in the list was Titan Company with price CAGR of 40 and P/E ratio of 72x in 2019 as compared to 19x in 2009. RoE was 23 percent in 2019 versus 31 percent in 2009.

Shree Cement, with 39 percent price CAGR over the 10-year period 2009 to 2019 stood fourth. In 2019, the P/E ratio was 57x, grew from 4x in 2009 while RoE fell to 12 percent in 2019 from 49 percent in 2009.

Asian Paints had a 10-year price CAGR of 34 percent. Its P/E ratio was 67x in 2019 and 19x in 2009. RoE was 23 percent in 2019 and 22 percent in 2009.

Kotak Mahindra Bank ranked sixth with price CAGR of 34 percent over the 10-year period 2009 to 2019. The P/E ratio was 35x in 2019 versus 15x in 2009. RoE in 2019 stood at 12 percent as against 10 percent in 2009.

Godrej Consumer with price CAGR of 32 and P/E ratio of 33x in 2019 as compared to 20x in 2009. RoE was 29 percent in 2019 versus 30 percent in 2009.

The country’s largest software services exporter Tata Consultancy Services (TCS) stood eighth in the list of Most Consistent Wealth Creator with price CAGR of 31 percent over the 10-year period 2009 to 2019. P/E ratio was 24x in 2019 versus 10x in 2009. RoE in 2019 stood at 35 percent as against 33 percent in 2009.

HDFC Bank had 10-year Price CAGR of 28 percent. Its P/E ratio was 28x in 2019 and 18x in 2009. RoE was 15 percent in 2019 and 15 percent in 2009.

LIC Housing Finance with Price CAGR of 28 ranked tenth in the list. P/E ratio was 11x in 2019 as compared to 4x in 2009. RoE was 15 percent in 2019 versus 24 percent in 2009.