Bulletproof stocks! These 4 companies have not disappointed equity investors in 10 years

A select group of companies have stood out as beacons of consistency and reliability for investors in the past 10 years, delivering positive returns to investors year after year since 2014. This includes the oil-to-telecom behemoth Reliance Industries, the manufacturer of adhesives and construction chemicals Pidilite Industries, fashion retailer Trent, and specialty chemicals firm Elantas Beck India.

With a rally of 3,241%, shares of Trent emerged as the top gainer on a point-to-point basis. The scrip rallied to Rs 4,971.05 on June 7, 2024, from Rs 148.78 on December 31, 2014. Meanwhile, it delivered a maximum return of 126.27% in 2023 and a minimum return of 7.29% in 2018. According to Axis Securities, Tent’s focus on store expansion and assortment of refreshments will lead to future growth in all store formats.

Motilal Oswal Financial Services believes Trent offers a huge runway for growth over the next three years, supported by healthy productivity, robust footprint additions, and healthy scale up within the Zudio and Star formats.

“The total market size of value retail is around Rs 5 lakh crore, and it is growing at 15–16%. Out of this, only 30% (Rs 1.5 lakh crore) is organised. Trent’s market share in the total and organised markets is between 2% and 8%. Growth will further be augmented by the transition from unorganised to organised and from organised to becoming a brand. As a result, Zudio and Westside have a modest market share in India, but the company still believes that they have a lot of potential,” Motilal Oswal Financial Services said in a report.

Elantas Beck India stood next on the list. Shares of the company gained 1035% to Rs 11,225 on June 7, 2024, from Rs 988.80 on December 31, 2014. Elantas Beck India delivered a maximum return of 95.34% in 2023 and a minimum return of 0.09% in 2018.

Likewise, Reliance Industries (RIL) and Pidilite Industries have also gained 566% and 476% since December 2014. RIL delivered a return of somewhere between 1% and 71% during the same period. On the other hand, Pidilite has gained somewhere between 2% and 53% every year since December 2014. For the calculations of the return for 2024, data for December 29, 2023, to June 7, 2024 is considered for the article.

Sharing its view on Pidilite, Sharekhan said in a report that the company is likely to see a disruption in sales in Q1 FY25 impacted by the general election due to movement of labour and logistical disruption in supply of key inputs and other resources. Pidilite has maintained its medium-term guidance of double-digit volume growth driven by an increase in demand for real estate activities, government spending on various projects, and a recovery in the rural economy.

“Pidilite is one of the strong players in the adhesives and construction chemicals industry in India. Strong brands, the introduction of innovative products (1/3rd of growth will come from innovations), and a wider reach will aid market share gains in the construction chemicals segment (especially in the waterproofing space) from unorganised players. An overall increase in construction activities, high real estate demand, government spending, and increasing prosperity will drive consistent demand in the coming years,” Sharekhan said, adding that revenues and PAT are likely to grow by 13% and 17% over FY24–26.

“Recent underperformance and strong growth prospects make it a good play in the building material space. We maintain a ‘Buy’ recommendation on the stock with a revised target price of Rs 3,170,” Sharekhan said. On the other hand, brokerages Nuvama and Jefferies are positive on Reliance Industries, with a target price of Rs 3,500 and Rs 3,380, respectively.