Index performance in the last decade 2010-2020

Nifty 50 - Then v/s Now

Top 20 performers & Bottom 20 performers of the decade – 10 year CAGR

Note: Nifty 500 Performance based on 10 Year M.Cap CAGR, Ignored 90 companies for this case study that have either been acquired/merged/gone into bankruptcy during the decade

Top 20 Performers of the decade (2010-2020)

Most of the Top 20 Performers belonged to non-cyclical sectors such as Banking, Financial services and Insurance (BFSI), Automobiles and Healthcare.
Debt to Equity was slightly higher than the benchmark’s 0.7 due to the inclusion of financial companies like Bajaj Finance, Bajaj Finserv & Cholamandalam Investment.
Note: Nifty 500 Performance based on 10 Year M.Cap CAGR, Ignored 90 companies for this case study that have either been acquired/merged/gone into bankruptcy during the decade

Top 20 performers by sector composition

Bottom 20 performers - Fundamentals

Most of the Bottom 20 Performers belonged to cyclical sectors such as Infrastructure, Power, Realty and Telecom.
Many became loss making at the EBITDA levels, with high interest costs adding to their burden.
Due to the high amount of working capital required in these sectors, a poor cycle impacts the business dearly making them unable to pay off the debts.

Bottom 20 performers by sector composition

Learnings from the decade (2010-2020)

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Vishrut Pathak – Partner

Vishrut Pathak is an MBA from St. John’s University, with specialisation in International Finance and has a PGD from New York university in Financial Statement Analysis. He was Vice President at HNW Inc. for 6 years where he worked with leading institutional clients like Lord Abbett Merrill Lynch, CitiBank and Morgan Stanley. Prior to HNW Inc, he worked as a senior analyst for a growing Buyout firm in New York in hospitality industry (IT Hospitality Inc.). After working for 10 years with various financial firms in New York, he founded “Pi Square Investments” in Jan 2011. He has over 20 years of Investment Management and corporate finance experience and also Mentors at EDII (Entrepreneurship Development Institute of India) under CrAdLE platform.