Even if you are looking to create a portfolio from a list of companies, you will find a vast deviation between the stock performance over the course of a few years. To narrow down your list, it is always a good idea to start with the strongest ones.

In that vein, here are 3 Nifty 50 stocks that have delivered returns at the highest CAGR over the past 5 years.

Adani Enterprises Limited

No matter how much you hate the Adani Group companies for their alleged malpractices (which is yet to be proved), Adani Enterprises (NS:) has created the biggest wealth for investors (among the Nifty 50 companies) in the last 5 years. It is the flagship company of the group with a market capitalization of INR 3,00,931 crore and clocked a record high revenue of INR 1,38,186.88 crore in FY23 which translated into a net income of INR 2,472.94 crore.

The stock has delivered a return at a 5-year CAGR of 65.39% and despite Hindenburg Research’s allegations, FIIs have increased their stake to 19.34%, from 15.39% by the end of the December 2022 quarter. On the contrary, it is also to be noted that the stock is trading at an expensive TTM P/E ratio of 112.4.

Apollo Hospitals Enterprises Limited

Apollo Hospitals Enterprises (NS:) is a well-known hospital chain with a market capitalization of INR 70,923 crore and FIIs hold a gigantic stake of 47.93% in the company. This is the second-best performing stock among all index constituents with a 5-year CAGR of 33.08% and most of the gains came right after the Covid-19 pandemic.

However, it is also among the most expensive ones. A company that has a market cap of over INR 70,000 crore generates an annual profit of only INR 819.9 crore (FY23). Considering its spot price, the stock is trading at a triple-digit TTM P/E ratio of 106.08. Hence from the valuation perspective, it might not be ideal to add it to the portfolio at the CMP.

Tata Consumer Products Limited

Tata Consumer Products (NS:) is a food and beverage company from the Tata stable, having a market capitalization of INR 78,826 crore. Although the stock is around the same level as August 2021, it has compounded investors’ wealth at a 5-year CAGR of 28.67%. Its revenue has been growing at a yearly rate of 15.3% over the last 5 years, to INR 14,194.78 crore in FY23, not a bad growth rate for a blue chip.

Almost ¼ of the company is held with FIIs, while mutual funds own a 6.1% stake, as of the June 2023 quarter. The company’s EPS (earnings per share) which was a mere INR 5.92 in FY20 surged 119% in 3 years to 13.01 in FY23, one of the main reasons that drove the stock price.

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