Friends, do you know that in the last 15 years
if you had only invested in Sensex
without giving it a thought, which company will do well or not
How much return, do you think you would have received?
If I tell you this number if you had only invested in Sensex
then you would have got a CAGR return of 9.13%
that too in between that time period, there was a recession
after which the news of coronavirus came out
which created a lot of dip in the market
which means even after such ups and downs
in the last 15 years, Sensex has shown a positive CAGR of 9.13%
It's a really good number
If you compare it with your FD returns, it might really outperform
but when we talk about companies then
Friends, you know that Sensex has been made with the stocks of 30 companies
the whole return which Sensex gave
would have been made out of those companies
Now you might be thinking, everyone tells you which all companies are a part of Sensex now
but do you know, when Sensex
started in 1986
from then to now which are those five companies
which are still in Sensex
and how much return it has given in comparison with the Sensex
I, Jagdeep Singh, Welcomes you to the Groww Channel
Let's talk in today's video
about those five companies
Five companies which have existed in Sensex from its inception in 1986
to till date
I will talk about their business, their returns and about its industry
but before starting the video
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Now let's start today's video and talk about
the first company which is there in Sensex from 1986 to till date
and even today it is considered to be a good company for investment
Name of the company is ITC ltd
you might have heard a lot about ITC
if not for the name, then you would have definitely heard about its products
which you would have used in your daily life sometimes
like Aashirvad Atta, Classmate, their hotels and cigarettes
These are the products which people use a lot in their daily life
If I tell you a bit about ITC then
ITC has given a return of CAGR of 13.53% in the last 15 years
it has outperformed Sensex's return really well
and it is said that, during the inception of Sensex in 1986
the business dynamics were very different in India
after which the economy changed after which a lot of business changed
After which even ITC changed itself really well
A company which was completely dependent on cigarettes at one point of time has become an FMCG company
has become an FMCG company
Other than that, it has become a diversified company which has a lot of cash
and has no debt as well as performs very efficiently
So friends, if I tell you a bit more about ITC
Friends, if I talk about ITC's shareholding pattern
then you will be shocked to know that no promotor promotes ITC
it is completely a professionally managed company
Friends, if I talk about who has invested the most in ITC
then it is mutual fund holdings
who have invested around 10%
and in second place is domestic institutional holding
which has more than 42% of holding in ITC
Friends, now you have got to know that many mutual fund companies have invested in ITC
now you will be surprised if I tell you about the number
this number comes out as more than 320
which means there are more than 320 mutual funds which have a stake in ITC
so from this, you can understand
that how much do big institutional investors trust ITC
who are investing in ITC for a long time
other than this, if we talk about its quarter 4's results then
net profit has gone down from what the analysts were expecting
its business other than the cigarettes are diversified into many sectors
Like if I talk about classmate then a lot of products come under that
and as you know because of COVID, all educational institutes were shut
other than this there were many products which faced a lot of negative effects
cause of which its net profit reduced a bit
but friends it is also said that ITC acts as a defensive stock in your portfolio
cause when the market then normally ITC doesn't go down at the same rate
but we cannot predict its future
but as of today, this company's balance sheet is very strong
financially, this company is really good
but in the future, how it performs
that you can research and decide
so ITC is the first company that has been there in Sensex from 1986 to date
there are many domestic institutional players, mutual funds which have directly invested in this stock
Friends, now I will talk about the second company
which is of FMCG sector
and is a part of Sensex from 1986 to this date
The name of this company is Hindustan Unilever Limited(HUL)
you would have heard its name many a time
if you haven't heard its name
then like ITC, you would have used its products many a time
and you might not have realized that it belongs to HUL
If I talk about HUL
If I talk about HUL's return of the last 15 years
then HUL has given a CAGR return of 19.37%
Friends, to get a CAGR return of 19.37% is a big deal
there are very few companies which can give such returns over a long time
it is not important in last one year, how much return a company has given
cause it is possible that a company might have given a return of 30 to 40%
It's very important for you to choose
a company which can give you a CAGR return of 10% to 15% in the next 15 years
HUL is such a company which has given a return of more than 19% in the last 15 years
and as you know HUL is an FMCG sector company
so friends, if I talk about its brands
then HUL has many brands which you would be using in your daily life
Some of the names are Lifebuoy, Brooke Bond Red Label, Surf excel
other than this, Ponds, Vim, Dove, Rexona, Kwality Wall's
These are the product which HUL owns and you must be using them on your day to day life
Friends, If I talk about HUL's share price
then it's share price trades at Rs.2100
If I talk about its last year's return
Due to coronavirus when everything went into loss
HUL has given a return of +20% in the last one year
which is considered to be a good number
If I talk about its PE ratio
then HUL's PE ratio is around 70
which is a little more than the industry's PE ratio
If I talk about its market capitalization
then HUL's market capitalization is a little more than 5 lakh crores
Friends, if we talk about mutual funds
there are more than 400 mutual funds which have invested in HUL
And if I tell you one more interesting fact
In the last few months, HUL's investment in mutual funds has increased at a good rate
Friends, if I tell you one more interesting fact
About the five companies that I am going to talk in this video
in those companies, HUL is such a company
which is there with Sensex from inception
but has also given the highest CAGR return in comparison with the other 4 companies
Friends, Lets talk about the third company in this league
which is there with Sensex from its inception
This company's name is L&T ltd
Friends, If I talk about L&T
L&T has given a CAGR return of 15.55% in the last 15 years
which means, its such a return that outperforms the Sensex
and also outperforms the returns from a good asset
the best thing here is consistency
that this company has given a CAGR return of 15.55% in the last 15 years
which is considered to be a big deal
Friends, If we talk about L&T's business
then L&T's main businesses are technology, engineering, construction, and financial services
which means L&T is a well-diversified company
Friends, If I tell you one more interesting thing about L&T
then even this company is a professionally managed company
which means there is no promotor family which promotes this company
Now you would like to know
If it is a professionally managed company
then which all companies have invested here
as you can see on my screen
This is the shareholding pattern of L&T
This tells us which companies have invested and how much they have invested
If I talk about the main companies
then FII's & GDR has an investment of 18% in this company
If we talk about Government Financial Institutions & Insurance Companies
then they have a holding of 21%
Individuals have a share of 22%
L&T employees Trust has a share of 13%
and Mutual Funds & Pvt Insurance Companies have 18%
This tells us, which different companies have invested in L&T
If we talk about major institutional investors
then the major investment is done by LIC
It has a stake of around 15% in the company
Friends, If I talk about L&T's last one year's return
then L&T has given a negative return of 38% in the last year
which is considered to be a negative number
In the last year, it has incurred a lot of negative return
but L&T is considered to be a good company
Now L&T's performance in the future is yet to be seen
but financially this company is considered to be strong
other than this, if I talk about L&T's PE ratio then
then L&T's PE ratio is of 14.14
if I compare it to its sector
Its sector's PE ratio comes around 24
which means in comparison with the sector, L&T's PE ratio is less
which is considered to be a good thing
Friends, now let's talk about the fourth company
The name of the company is Mahindra & Mahindra Ltd
you might have heard of Mahindra & Mahindra Ltd
If I talk about its returns
that in the last 15 years, how much CAGR return has been generated
then M&M has given a return of 15.50% in the last 15 years
which is a good number in comparison with the Sensex
If we talk about M&M's business
then its business is mainly diversified into three segments
Their first business is cars manufacturing
The second business is in vehicle manufacturing
and the third business is in tractor manufacturing
so M&M has quite a diversified business
which basically belongs to the automobile sector
Friends, If I talk about its share price
then currently its share price is of around Rs.500
If I talk about its returns in last one year
then M&M has given a negative return of 23.49 in last one year
One interesting thing here is that
when COVID situation was in extreme
then its share price touched Rs. 280 at one point
after which a good recovery could be seen here
and its share price has again reached a level of Rs. 500
Friends, If I talk about its shareholding pattern
then the foreign institution has the most holding
which has a stake of more than 33.88%
and now if we talk about their promotors
Promotors have a share of 20% in this company
and if I talk about mutual funds, its stake in the company is more than 10.41%
Now friends, let's talk about the last company
last but not the least
and India's largest company by market capitalization
The name of this company is Reliance Industries
If we talk about Reliance industries
then its the biggest company in terms of market capitalization
If I talk about its return
that in the last 15 years, how much CAGR return has this company given then
The constant CAGR return that this company has given is of more than 19%
which shows how well it outperforms the Sensex
If I tell you a bit about Reliance Industries
then its business is diversified into many sectors
like petrochemical, oil refining and they have many stores in retail
from which it targets many retail segments
and in the end, its new business
which seems to be an attractive proposition by global investors.
The name of the company is Reliance Jio
You might know about Reliance Jio
In the last one or one and half month itself has
more than 1 lakh crores of investment have been generated
from a lot of foreign investment firms
which has made Reliance industries net debt-free company
about which Mukesh Ambani spoke
before financial 2021, they want to become a debt-free company
but Reliance Jio made it debt-free before this set time period
Friends, If I talk about Reliance Jio's shareholding pattern
then the biggest stake here is with its promotors
You might know these promotors name
Mukesh Ambani, Reliance Group whose stake is more than 50% in this company
Now, If I talk about Foreign Institutional Holdings
Their stake is of more than 24%
and Domestic Institutional Holding's shake is of more than 13%
This tells us, how much has been invested by every group
and there if I talk about Mutual Fund Holding
then in the overall stake, 5.3% is of mutual funds
which is more in comparison with March 2019
cause in March 2019, mutual fund stake was at 4.48%
which has now increased to 5.37%
which means mutual funds have a good buying of shares in the last year
Friends, If I talk about Reliance Industry's share price then
then its share price trades at Rs. 1800
so if I talk about Reliance Industry's last one year's return
then Reliance Industry has given a return of more than 40%
which is a really big number
It tells us that in such difficult times, how well have Reliance performed in one year
Friends, in this video, we have tried to explain to you which are those
five companies which have existed in Sensex from the inception in 1986 to till date
cause as you know, Sensex is the stock market index of 30 companies
some companies are removed from it
and some other companies are added to it
but in such a long time, from inception till date
these are the companies which have managed to be there
which has given a good return in terms of CAGR
and in a long time has given a good CAGR
which is considered to be a good thing for any investor
But at the end of the video, I would like to again mention
that we do not give any recommendation to buy and sell
All of our videos are made for educational purpose
so that it will help you become a good investor
so that you can research yourself and choose a good company
which can give you a good return in the future
If you liked this video
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Comment and tell us which is your favorite company
and which do you think would be the five companies
that will never be off the Sensex in the coming years
cause If you identify them as well
these can give you a good return as well
but these are all speculations
Don't do speculation and do good research
and decide on where you should invest
At the end of the video, I would again like to say
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