Crorepati stocks: 10 stocks that converted Rs 10 lakh to Rs 1.7 cr in 5 years

NEW DELHI: Everyone wants to be rich quickly, but it is not easy to do so. However, there are some stocks whose run in the last five years makes it seem easy. In fact, if you had invested Rs 10 lakh in these 10 of the fastest growing stocks five years ago, it would have yielded Rs 1.7 crore by now.

The 10 stocks are: Adani Transmission, Deepak Nitrite, Adani Enterprises, Tanla Platforms, Ruchi Soya, Alkyl Amines, Vaibhav Global, APL Apollo Tubes, P&G Health and Escorts, a study by Motilal Oswal shows.

Adani Transmission, the Gujarat based electric power transmission company, emerged the fastest wealth creator in 2016-21, at a humongous CAGR of 93 per cent. Deepak Nitrite, Adani Enterprises, Tanla Platforms and Ruchi Soya are among the next fastest wealth creators, compounding wealth at 81-93 per cent per annum.

Interestingly, out of these 10 names, seven were trading at or below the P/E of 20. That implies, identifying good quality companies at a cheap rate is the fastest way to build wealth. Most of these stocks are trading at much higher multiples now.

Overall, the pace of wealth creation has never been faster in India. Equity wealth created by investors and entrepreneurs in India in the last five years stands at Rs 71 lakh crore, the most in the last 26 five-year periods.

Not surprisingly, Reliance Industries was the biggest wealth creator in the period. Over 2016-21, Reliance Industries emerged the largest wealth creator for the third time in succession, with total wealth created at Rs 9.7 lakh crore. “This is by far the highest ever, beating its own previous record of Rs 5.6 lakh crore in 2014-19,” said Motilal study.

Following Reliance Industries, TCS, HDFC Bank, Hindustan Unilever, Infosys and Bajaj Finance are the next biggest wealth creators, creating Rs 7.3 lakh crore to Rs 2.6 lakh crore.

Adani Enterprises is also the most consistent wealth creator of five years. It has outperformed in all the last 5 years, and has the highest price CAGR of 86 per cent.

The study defines consistent wealth creators based on the number of years the stock has outperformed in each of the last five years. Where the number of years is the same, the stock price CAGR decides the rank.

All round, Adani Enterprises is the best wealth creator based on the summation of ranks, under each of the three categories — biggest, fastest and consistent.