20000x return! CLSA wants time machine as 10 Indian stocks turn Rs 10,000 into Rs 19 crore

Global brokerage firm CLSA has released a list of 10 Indian wealth creator stocks which have surged up to 19,00,000 per cent or 19,000 times in the last 28 years, since it started its coverage on Indian equities. These 10 names have turned into wealth creators for investors resulting in at least 1,35,000 per cent, or 1,350 times rally for the investors.

It means that if an investor would have bought stocks worth Rs 10,000 of these companies, they would have got a minimum of Rs 1.35 crore to a maximum of Rs 19.17 crore for their investment in a span of 28 years. CLSA said that it would want a time machine to buy these stocks in 1998. Majority of crorepati stocks have a positive outlook by the global brokerage firm.

CLSA currently covers 179 Indian stocks which have a combined market capitalization of more than $3.1 trillion, while India's entire mcap stood at $200 billion in 1998, when it held its first India Forum in 1998. It believes that that cub has grown into the tiger, while more growth is on the way.

The list is topped by Westlife Foodworks, which has surged 19,17,039 per cent or 19,170.4 times to Rs 575 from Rs 0.03 per CLSA report, released on November 21. The stock has turned the investment of Rs 10,000 into Rs 19,17,04,000 in less than three decades. However, it currently has an underperforming rating by CLSA.

Emkay Global Financial Services remains conservative, with 14 per cent topline CAGR and 100bps of annual margin gain over FY25-28E. Prolonged weakness led to 8-12% correction in our EBITDA estimates, which are completely offset by earnings rollover. We retain 'add' with an unchanged target of Rs 725, as we believe the near-term weakness is more than factored," it added.

It is followed by consumer goods maker Havells India and Royal Enfield manufacturer Eicher Motors, which have surged 6,58,600 per cent ( or 6,586 times) and 4,81,000 per cent (or 4,814 times) in the last 28 years, turning an investment of Rs 10,000 into Rs 6.59 crore and Rs 4.81 crore, respectively. Both stocks have an outperforming rating from CLSA.

Antique Stock Broking has a 'buy' rating on Havells India and with a target price of Rs 1,760, while Elara Capital has an 'accumulate' rating on the stock with a target price of Rs 1,580. Elara has given a 'reduce' rating to Eicher Motors with a target price of Rs 6,550. Choice Institutional Equities has also given the same rating on Eicher with a target price of Rs 7,020.

Financial majors Bajaj Finance and Kotak Mahindra are also in the crorepati maker's list of CLSA. These two financial behemoths have delivered returns of 4,10,131 per cent (or 4,101 times) and 2,37,303 per cent (or 2,373 times) since CLSA's first India Forum. The former one still has an outperform rating by CLSA, while the latter one is given with a 'hold' tag.

Axis Securities recently upped its target on Bajaj Finance to Rs 1,200 apiece, while Sharekhan trimmed its target to Rs 1,125 apeice. However, both have a 'buy' rating on the shadow lender. Kotak Mahindra Bank, which is among the frontrunners to acquire IDBI Bank, has a 'buy' rating from both ICICI Securities and Axis Direct with a target prices of Rs 2,650 and Rs 2,575, respectively.

Samvardhana Motherson International (up 2,22,327 per cent), Bharat Electronics (up 1,65,600 per cent), Titan Company (up 1,47,119 per cent), Shree Cement (up 1,43,957 per cent) and Manappuram Finance (up 1,35,225 per cent) are other crorepati stocks which turned a Rs 10,000 investment in Rs 1.35 crore to Rs 2.22 crore in the 28 year period.

Barring Manappuram Finance, which has a 'hold' rating from CLSA, other four stocks have an 'outperform' tag from the brokerage. Nuvama Institutional Equities and Motilal Oswal has a 'buy' rating on Samvardhana Motherson with a target price of Rs 126 and 129, while Geojit Investments and ICICIDirect have a 'buy' rating on BEL with target prices of Rs 504 and Rs 495, respectively.

Centrum Broking has a 'buy' rating on Titan Company with a target price of Rs 4,300, while JM Financial has an 'add' rating on Shree Cement with a target price of Rs 31,000. However, YES Securities has a 'reduce' rating on Manappuram Finance with a target price of Rs 255 apeice.