TURN CROREPATI WITH THESE STOCKS

What are the Indian stock market shares that can make you crorepati after a decade?

Tejas Khoday, Co-Founder & CEO, www.fyers.in

Written Jul 19

To turn ₹10,00,000 (Ten Lakhs) to ₹1,00,00,000 (One Crore), you will need to clock a Compounded Annual Growth rate (CAGR) of 25.89% yoy as shown in the calculator below:

To do it yourself checkout our CAGR Calculator.

There are only a handful of stocks which have delivered that kind of CAGR growth in the last 10 years. You will have to bet on industries which have a massive scope for expansion and whose companies are all in the growth mode. In the long-run profits are what drives stock prices up regardless of short-term news and technical moves. So ideally, you got to focus on profitability of companies as the underlying deciding factor. Compounded Profit growth of some of them are:

1. Bliss GVS Pharma = 54%
2. Aurobindo Pharma = 48.3%
3. Yes Bank = 44%
4. Torrent Pharma = 38.8%
5. HDFC Bank = 30.2%
6. Lupin = 29.63%
7. Sun Pharma = 27%
8. Godrej Consumer Products = 26%

As you can see, the pharmaceutical industry in India is booming and Indian companies are increasing their market share in the generic drugs space. A little research will show you that Indian companies are going to play a major role in the world market in the coming years. All this growth has happened without any major patented drugs and R&D developments. This Industry has a big scope to expand and does offer long-term wealth creation.

Such stocks are an ideal match for your goals.

Even the IT sector has not clocked such growth numbers in the last 10 years. Now considering that past performance is not a guarantee for future results, you should be able to find great opportunities in the following sectors in my opinion.

1. Large defense manufacturing companies.
2. Private Banks
3. Listed Insurance companies.
4. Consumer goods that gain quick traction.

Hope it was fun reading this answer.

Co-Founder & CEO, Fyers - Your Next-Generation Online Stockbroker

P.S - Do NOT invest in mutual funds if you’re attempting such high returns. Mutual funds are a safe play and they often diversify their portfolio to a point that it hurts performance. This is a widely accepted fact. It’s just that its not spoken about so openly. The returns cannot be compared to individual stock investments. That’s the bottom line.