Bajaj Fin, Asian Paints, Adani among consistent performers

Mumbai: The stock market rarely moves in a unidirectional manner in the long run making it challenging for investors to predict returns. But there are a handful of stocks that have moved up consistently in the past five years. Out of the 3,500-plus stocks actively traded on Indian bourses, only 23 gave at least 15% returns in each of the past five calendar years. On a compounded basis in the past five years, these stocks have returned at least 30%.

These include Bajaj Finance, Asian Paints, Avenue Supermarts, Adani Enterprises and Jubilant FoodWorks among others. ET analyses the returns of companies with a market-cap of at least ₹5,000 crore.

The consistent performance has, however, meant that valuations of most of these companies are rich. But that did not stop many of these stocks from advancing in 2021. For instance, shares of DMart's parent Avenue Supermarts, which has traded above a Price to Earnings (PE) ratio of 100 on most occasions since listing, ran up 67% in 2021. Similarly, Asian Paints and Pidilite Industries, which have been among the favourites of growth-oriented investors, are trading at PE ratios of over 100 times. Their stocks rose 22% and 39%, respectively, in 2021. Many of these stocks have been shunned by a section of the market because of their sharp valuations.