HDFC Bank And Pidilite: Only Two Stocks To Deliver Consistent Annual Returns For A Decade

In a market where over 6,500 companies are listed, only two names have stood the test of consistency. According to calculations made by NDTV Profit, HDFC Bank Ltd. and Pidilite Industries Ltd. have emerged as India’s most reliable stocks, delivering positive returns every calendar year since 2015—a feat unmatched by any other listed company.

Market cycles, policy shifts and global shocks ensure that most stocks falter at some point. Against this backdrop, only these two stocks have delivered positive returns in every calendar year since 2015, underscoring the power of true long-term compounders.

The calendar-year return profile highlights just how unusual this achievement is as HDFC Bank and Pidilite have navigated bull and bear markets, macro disruptions and sector-specific challenges without a single negative year.

From 2015 to 2025 (year-to-date), HDFC Bank’s annual returns have ranged from a low single-digit 3–5% in some years to a strong 55% in 2017, while Pidilite has delivered particularly robust gains in cyclical upswings, including 53% in 2017 and 39% in 2021. Even in tougher years such as 2018, 2022 and 2023, both stocks managed to stay in the green.

This level of consistency is exceptionally rare in Indian equities, where even high-quality businesses often suffer at least one drawdown during economic or market stress.

Brokerage sentiment continues to favour both names. Around 96% of analysts rate HDFC Bank a ‘Buy’, with an estimated return potential of 15% from current levels. Pidilite also enjoys strong support, with 68% buy recommendations and return potential of about 12%.

While near-term returns may not match past decade highs, analysts believe both companies remain well placed to deliver steady compounding rather than sharp, speculative upside.

Pidilite continues to trade at premium valuations, reflecting its dominant brand franchise and pricing power. The stock trades at a 12-month forward PE of 56x, slightly below its two-year average PE of 64x, suggesting some moderation despite strong performance.

HDFC Bank, on the other hand, trades at a 12-month forward price-to-book of 2.6x, compared with a two-year average of 2.8x. For a bank with consistent asset quality and strong return ratios, valuations are seen as reasonable by long-term investors.

For HDFC Bank, multiple operating levers could drive a recovery phase. Asset quality remains robust, while loan growth is expected to recover to 10%-plus over fiscal 2026 and 2027.

Net interest margins are likely to improve with expected rate cuts, and operating leverage should strengthen as growth normalises. Return on assets is projected to recover towards 2% by FY28E, reinforcing the bank’s long-term compounding story.

For Pidilite, management guidance remains strong. The company sees promising prospects in new segments, while overall input costs are expected to stay benign. Its ability to consistently innovate, expand distribution and defend market share continues to underpin earnings visibility.

Despite their track record, risks remain. Rising competition could pressure growth and margins for both companies. In Pidilite’s case, valuations near 60x earnings leave little room for error, making execution critical. For HDFC Bank, any prolonged slowdown in credit growth or margin recovery could delay the expected earnings rebound.