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Top 20 Wealth Creator (& Destroyer) Stocks of 2018

The calendar year 2018 was full of ups and downs for the Indian stock market investors. While Sensex made its all-time high in August 2018, the net return in this year is still just 4.90% (YTD). Sensex started with 33,812 points in January 2018 and as of December 2018, it is currently hovering around 35,470 points.

nifty 2018

On the other hand, if we look into the NSE benchmark index Nifty 50, it started at 10,435 points in January 2018 and currently trading at 10,663 points, with an overall return of merely 2.18% this year.

nifty 2018

If we compare the returns on Nifty in 2018 with that of last year (2017- when it gave a return of around 28.6%), we can easily notice that the index has comparatively underperformed in 2018. Nonetheless, ups and downs are the characteristics of the market and the stock market investors should be not be haunted by it.

As the year 2018 is fastly approaching to its end, we performed a short analysis to find the winning and losing stocks of 2018. Here is a list of 20 large cap companies in India with a market capitalization greater than Rs 100 Billion, which either grew over +30% or fell over -35% within the year 2018.

If you are interested in large-cap companies, this list might give you a rough idea of the stocks that you missed or can add in your watchlist for the upcoming year.

Top 20 Wealth CREATORS of 2018

S. No Name Symbol Industry Last Price Market Cap 1-Yr Chg (%)
1 HEG HEGL Electronic Instr. & Controls 3675.35 155.86B 83.82
2 L&T Technology Services LTEH Construction Services 1687.05 171.74B 71.22
3 Larsen & Toubro Infotech LRTI Software & Programming 1695 291.26B 57.67
4 Adani Enterprises ADEL Coal 158.55 175.67B 53.92
5 Bata India BATA Footwear 1109 144.13B 47.74
6 Tata Consultancy TCS Software & Programming 1918.5 7130.75B 44.97
7 Bajaj Finance BJFN Consumer Financial Services 2564.9 1497.28B 43.9
8 Tech Mahindra TEML Software & Programming 697.9 684.05B 41.43
9 Indiabulls Ventures INDB Investment Services 379.85 235.61B 41.22
10 MindTree MINT Computer Services 837.7 139.19B 39.69
11 Nestle India NEST Food Processing 10923.35 1064.11B 38.56
12 Mphasis MBFL Software & Programming 1018.15 187.77B 38.52
13 Jubilant Foodworks JUBI Restaurants 1218.95 173.76B 38.14
14 Abbott India ABOT Biotechnology & Drugs 7466.25 157.83B 34.82
15 Avenue Supermarts AVEU Retail (Grocery) 1545.75 1031.01B 34.28
16 Ipca Laboratories IPCA Biotechnology & Drugs 801.85 101.97B 33.6
17 Divi’s Labs DIVI Biotechnology & Drugs 1447.15 392.45B 32.77
18 Hindustan Unilever HLL Personal & Household Prods. 1784.65 4009.29B 31.56
19 Adani Power ADAN Electric Utilities 50.8 194.66B 31.27
20 Britannia Industries BRIT Food Processing 3100.55 751.53B 30.64

 

HEG was the biggest wealth creator in the large-cap segment this year. This stock gave a return of over 83% in 2018. Currently, HEG is trading at a share price of Rs 3,675. Surprisingly, this stock was also one of the biggest winners in 2017. (Quick Note: The stock of HEG was hovering at just Rs 160 during the start of January 2017).

Next, L&T Technology services (+71%) and Infotech (+57%) –both have performed well followed by Adani Enterprises and Bata India. TCS has also given a return of over 44% this year.

A few other popular winners in this list are Bajaj Finance, Tech Mahindra, India bull ventures, MindTree, NESTLE and Avenue Supermart (DMart).

Top 20 Wealth Destroyers of 2018

S. No Name Symbol Industry Last Price Market Cap 1-Yr Chg (%)
1 Vodafone Idea VODA Communications Services 37.35 335.36B -62.89
2 Tata Motors DV Ltd TAMdv Auto & Truck Manufacturers 94.15 559.20B -60.83
3 Tata Motors TAMO Auto & Truck Manufacturers 172.5 559.20B -59.12
4 NBCC India NBCC Construction Services 54.15 100.86B -57.36
5 Motherson Sumi Systems MOSS Auto & Truck Parts 161.55 534.49B -57.13
6 Punjab National Bank PNBK Regional Banks 76.7 284.07B -56.41
7 CBI CBI Regional Banks 35.15 106.22B -53.54
8 Bharat Electronics BAJE Aerospace & Defense 87.95 215.91B -53.34
9 Aditya Birla Capital ADTB Consumer Financial Services 97.05 216.36B -48.12
10 Mangalore MRPL Oil & Gas Operations 72.8 131.23B -43.24
11 Hindustan Petroleum HPCL Oil & Gas Operations 246.3 381.94B -42.63
12 Sun TV Network Ltd SUTV Broadcasting & Cable TV 576.95 233.42B -42.28
13 Bharti Airtel BRTI Communications Services 309.1 1233.18B -41.52
14 Yes Bank YESB Regional Banks 182.3 424.05B -41.22
15 Bank of India BOI Regional Banks 100.9 171.04B -41.05
16 New India Assurance THEE Insurance (Miscellaneous) 183.9 306.93B -40.15
17 Steel Authority SAIL Iron & Steel 51.95 218.50B -39.2
18 Indian Bank INBA Regional Banks 238.4 115.26B -39.15
19 Emami EMAM Personal & Household Prods. 401.85 187.63B -38.67
20 Vedanta VDAN Metal Mining 196.4 745.40B -37.96

 

Interestingly, Vodafone Idea is the biggest loser in this list and has lost a market price of over 62% in this year. The stock was trading at a market price of Rs 104.60 at the start of the year, and currently, its share price is fluctuating at Rs 37.35.

Tata Motors is yet another beaten company on the street. Both fully paid ordinary shares and DVR are down by around 60% in this year. This stock is continuously declining for around two years, since it made its high of Rs 578.70 in September 2016. Currently, Tata motors ordinary shares are trading at a price of Rs 172.5.

A few of the other popular losing stocks in this list are NBCC, Motherson Sumi Systems, PNB, CBI, Bharat Electronics, Aditya Birla Capital, Mangalore Petronet, HPCL, Bharti Airtel and YES BANK.

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Closing Thoughts

Although it’s good to monitor the yearly returns of the companies, however, looking at the performance of stocks just for a year is not enough. It is the long-term returns of the stocks that matter the most for the wealth creation of shareholders.

Besides, a lot many big companies on the list are trading at a decent discount currently. Whether the losing companies mentioned above will continue to decline further or bounce back will depend on their future performances.

The share investors should consider these as opportunities to invest in amazing businesses at a fair value. Happy Investing.

Disclaimer: The stocks listed in this post should not be considered as recommendations. Please study the companies carefully or take the help of a financial advisor before investing.