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
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.