Call it the benediction of independence or the inexplicable benefit of planetary alignments or plain good luck, but investments in companies born in 1947 seem to be consistently outperforming the benchmark Sensex. Companies incorporated in 1947 outperformed the Sensex by almost 45% in the last five years, giving investors an absolute return of more than 240%, a SundayET analysis shows.
Far-fetched it may seem, but the analysis holds good even on a three year and one year timeframe. Over a three year period, twelve companies, which are currently trading in the Bombay Stock Exchange
, have appreciated by around 54%, which is about 10 percentage points higher than the Sensex rise.
A total of about 77 companies were incorporated in 1947, of which 12 companies are currently trading on the Bombay Stock Exchange. Of these 12, four companies — Grasim Industries, Wyeth, Novartis India and Piramal Healthcare — have a stock market trading history since 1991. Other companies got listed later.
In the last one-year, the 23-year-old Sensex has appreciated merely 3%, whereas these 62-year-olds companies as a group rose 17%. Of these, companies such as Avery India, Novartis India and Wyeth rose 119%, 50% and 58% respectively in the last year.
Experts say their success has less to do with the year they were born, and has more to do with their inherent performance and the sectors they are in.
According to Aseem Dhru, MD & CEO at HDFC Securities, the main focus of the government in the years after independence was on the core sector, an area that continues to be in vogue, despite the disparaging “old economy” tag associated with these industries.
“In current market condition when focus is on the domestic demand, there is no surprise if companies from old economy are performing well,” he said. The country’s largest maker of auto batteries Exide Industries, one of the companies born in 1947, for instance generated a return of 358% and 146% in the last five and three years respectively.
In the last six months, it shares have appreciated more than 28%, tracking the 40% growth in its operating profits.
According to Vineeta Jain, head of research & index management at Eastwind Capital Advisors, a major reason for the better performance of these companies is their long history, which also showcases their resilience.
It probably helps that four of these companies are from the pharmaceutical sector, which showed a relatively better performance in the last year.
In the last six months, it shares have appreciated more than 28%, tracking the 40% growth in its operating profits. According to Vineeta Jain, head of research & index management at Eastwind Capital Advisors, a major reason for the better performance of these companies is their long history, which also showcases their resilience. It probably helps that four of these companies are from the pharmaceutical sector.
Far-fetched it may seem, but the analysis holds good even on a three year and one year timeframe. Over a three year period, twelve companies, which are currently trading in the Bombay Stock Exchange
, have appreciated by around 54%, which is about 10 percentage points higher than the Sensex rise.
A total of about 77 companies were incorporated in 1947, of which 12 companies are currently trading on the Bombay Stock Exchange. Of these 12, four companies — Grasim Industries, Wyeth, Novartis India and Piramal Healthcare — have a stock market trading history since 1991. Other companies got listed later.
In the last one-year, the 23-year-old Sensex has appreciated merely 3%, whereas these 62-year-olds companies as a group rose 17%. Of these, companies such as Avery India, Novartis India and Wyeth rose 119%, 50% and 58% respectively in the last year.
Experts say their success has less to do with the year they were born, and has more to do with their inherent performance and the sectors they are in.
According to Aseem Dhru, MD & CEO at HDFC Securities, the main focus of the government in the years after independence was on the core sector, an area that continues to be in vogue, despite the disparaging “old economy” tag associated with these industries.
“In current market condition when focus is on the domestic demand, there is no surprise if companies from old economy are performing well,” he said. The country’s largest maker of auto batteries Exide Industries, one of the companies born in 1947, for instance generated a return of 358% and 146% in the last five and three years respectively.
In the last six months, it shares have appreciated more than 28%, tracking the 40% growth in its operating profits.
According to Vineeta Jain, head of research & index management at Eastwind Capital Advisors, a major reason for the better performance of these companies is their long history, which also showcases their resilience.
It probably helps that four of these companies are from the pharmaceutical sector, which showed a relatively better performance in the last year.
In the last six months, it shares have appreciated more than 28%, tracking the 40% growth in its operating profits. According to Vineeta Jain, head of research & index management at Eastwind Capital Advisors, a major reason for the better performance of these companies is their long history, which also showcases their resilience. It probably helps that four of these companies are from the pharmaceutical sector.
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