Synopsis:
Since 2014, Modi stocks have shown a sharp contrast, with several delivering exceptional CAGR returns and earnings growth, while others struggled with negative returns despite reporting EPS expansion. The theme underscores the role of policy-linked investing in shaping India’s market trajectory and long-term wealth creation under the Modi government.
The term “Modi Stocks” was coined by brokerage house CLSA during the 2024 general elections to describe companies expected to benefit from policy continuity and economic reforms under Prime Minister Narendra Modi.
The curated list consists of 53 stocks in total, with 27 belonging to the public sector undertaking (PSU) category and 26 being non-PSU companies. These stocks have been under close investor watch, and many of them have delivered outstanding wealth creation since 2014.
From 2014 to 2025, the performance of these stocks has been measured on two key metrics: compound annual growth rate (CAGR) returns and earnings per share (EPS) growth. While some names have emerged as stellar performers combining high returns with strong earnings expansion, a few have faltered and even delivered negative returns despite reporting EPS growth.
Top Performers in Modi Stocks
Among the standout performers since 2014, Adani Enterprises leads with 40 percent CAGR returns and 24 percent EPS growth, making it the biggest wealth creator in the pack. Bharat Electronics has also delivered strong performance with 33 percent returns and 18 percent earnings growth, while JK Cement impressed investors with 26 percent returns and the highest EPS growth of 35 percent. Indian Hotels and HPCL followed closely, each compounding at 23 percent with earnings growth of 27 percent and 19 percent respectively.
REC and Ashok Leyland have both rewarded shareholders with annual returns of 22 percent and 21 percent, supported by steady earnings growth of 12 percent and 18 percent. Siemens has compounded at 21 percent alongside 14 percent EPS growth, while Power Finance Corporation and Cummins each delivered 20 percent CAGR returns with earnings expansion of 16 percent and 12 percent.
Together, these companies reflect how policy-linked opportunities and sectoral growth have fueled broad-based wealth creation across industries ranging from infrastructure and capital goods to energy and hospitality.
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Stocks That Gave Negative Returns
Not all Modi stocks have been wealth creators over this period. Vodafone Idea has been the worst performer with a steep decline of negative 21 percent CAGR returns since 2014, with no EPS growth as the company has remained loss-making throughout.
Punjab National Bank has also disappointed investors, recording negative 4 percent CAGR returns, though it still managed 12 percent EPS growth, a reflection of its struggle with asset quality and restructuring issues.
Oil and Natural Gas Corporation has been another laggard, delivering negative 2 percent CAGR returns despite 18 percent EPS growth, highlighting the muted investor interest in upstream oil companies.
Conclusion
The journey of Modi stocks since 2014 paints a tale of sharp contrasts. On one side, companies like Adani Enterprises, BEL, and JK Cement have multiplied investor wealth with CAGR returns of over 25 percent annually, showcasing how policy-driven tailwinds and earnings momentum can create significant shareholder value.
On the other hand, firms like Vodafone Idea, PNB, and ONGC demonstrate that structural challenges and sectoral headwinds can erode returns even when earnings growth is present. As a whole, the concept of Modi stocks continues to serve as a benchmark for policy-linked investing, offering insight into sectors and businesses most closely aligned with India’s growth trajectory under the Modi government.
Written By Manan Gangwar
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