The Hindu Business Line : Consistent wealth creators give good returns: Study

INVESTING in consistent wealth creator companies' stocks would lead to absolute returns in stock market, according to a study by stock broking firm, Motilal Oswal Securities.

"When you invest in consistent wealth creators, 90 per cent of the time you are sure to make absolute returns," said Mr Raamdeo Agrawal, Managing Director.

Speaking to newspersons on the firm's 10th annual wealth creation study, he said that the average absolute returns by these companies stood at 29 per cent for the 15-year study period between 1991-2005.

The top 10 consistent wealth creator companies are - Hero Honda, Ranbaxy Laboratories, Wipro, Dr Reddy's Laboratories, HDFC, Cipla, Nicholas Piramal, ITC, GSK Pharma, and Asian Paints.

The study said that by investing in such companies, one has 87 per cent chance of beating the Sensex; on an average, consistent wealth creators have outperformed the Sensex by 23 per cent.

The study said the fastest wealth creators between 2000-2005 were Matrix Lab with compound annual growth of 167 per cent followed by Aban Loyd Chiles (146 per cent) and Gujarat NRE Coke (140 per cent).