Can a large-cap company become a multibagger?

The common perception is that most large-cap companies don't make good wealth compounders. They are usually at the latter stages of their growth cycle and hence don't have much legroom for growth. But is there any truth to this belief, or is it a market myth? To test this claim, we looked at companies that had a market cap exceeding Rs 80,000 crore 10 years ago and currently have a market cap of at least Rs 1,00,000 crore. After applying the above filter, we landed on 15 companies. Out of the 15, 12 have more than doubled their market cap in the given time frame. Busting the large-cap myth Most of these large-cap companies have more than doubled in size Company Sector M-Cap growth (times) Median ROE 10Y Reliance Industries Crude Oil 6.7 11.8 HDFC Bank Bank 5.7 18.4 ICICI Bank Bank 5.4 13.6 HUL FMCG

This article was originally published on July 31, 2023.