EconomyThe Mexican stocks that have risen the most in...

The Mexican stocks that have risen the most in the last 10 years

In the long term, the market always tends to rise, it is enough to see any graph of any stock index to realize it. However, within the stock markets -and the indices- there are actions that shine and others that even disappear over the years.

In the Mexican Stock Exchange (BMV) there are some companies that during the last decade stand out for their performance. Among them are Grupo Lamosa, Gruma, Grupo Aeroportuario del Pacifico, Dine and Grupo Aeroportuario Centro Norte. These companies generated returns for their investors of between 729.1% and 394.7%, according to data from Bloomberg.

Grupo Lamosa, manufacturer of flooring and tiles, generated the highest return (729.1%), followed by Gruma, producer of corn flour and tortillas, with a gain of 482%, and Grupo Aeroportuario del Pacífico, specialized in airport services, with a dividend of 44.2%. In contrast, the Price and Quotation Index (IPC), which is the official indicator of the evolution of the stock market that seeks to measure the performance of the largest and most liquid stocks listed on the Mexican Stock Exchange, had an increase of 14.6 %, well below what these companies generated.

The shares of these companies were positioned as the best options for long-term investment and met the expectations that generally guide investors to determine where they will invest their resources: high yield and lower risk of loss.

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The IPC had a loss of 2.6% in the last five years. On the other hand, GNP Seguros achieved a profit of 247.2% and Simec, a manufacturer of steel products, managed to increase its profits by 209.4%, followed by Grupo Lamosa with 185.2%, which also gave the highest performance in ten years.

At three years, the shares of Grupo Lamosa also managed to become the most profitable among all those listed on the Stock Exchange, with a rate of 290.2%, well above the profit of 185.2% generated by the same company at a term of five years and the 20.6% drop that the IPC had in the middle of the pandemic.

The increase in the value of Lamosa’s shares has been driven mainly by the acquisition of the coatings business of the Spanish Grupo Roca, with operations in Spain, Brazil and the United States, in September 2021. The company stated in its report to the BMV that the acquisition will allow it to increase its consolidated income by approximately 20% and its production capacity of the coatings business by 16%.

Later, in October of the same year, Lamosa signed a contract for the purchase of Fanosa for approximately 115 million dollars, a leading company in Mexico in the industry of expanded polystyrene products.

The shares of Simec, GNP, Industrias CH, Monex and Chedraui also stood out in the medium term, which were not only among the ten companies that generated the highest return for their investors in the last three years, but also among the ten that most appreciated in the last five years.

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In the last year, the IPC presents a growth of 10.5%. However, it is very low when compared to the performance achieved by Famsa, a department store chain, which ranked as the one that generated the highest profits in the last year (178.8%), after announcing that it had reached an agreement with the majority of its creditors that will allow it to restructure its debt, after facing the effects of the pandemic, the revocation of its license to operate its subsidiary Banco Ahorro Famsa and its application for commercial bankruptcy in Mexico and bankruptcy in the United States.

Likewise, the 154.4% return generated by Monex Grupo Financiero, one of the world’s largest foreign exchange providers, specialized in international transactions and payment services for commercial clients, stands out. As well as the 91.7% profit generated by Vista Energy, it specializes in oil and gas extraction.

In conclusion, these companies have been the most attractive for investors and the ones that have increased the value of their shares the most in the Mexican Stock Exchange, in the long, medium and short term. Although conditions may change.

According to the study “Dynamics and challenges of investment to promote a sustainable and inclusive recovery”, prepared by the Economic Commission for Latin America and the Caribbean (ECLAC), the conditions of access to financial markets have hardened.

The increase in long-term interest rates has been accompanied by a decrease in stock market indices.

In that sense, it should be noted that, from April to October of this year, the IPC has had a fall of 18.2%, according to data from Bloomberg. For this reason, analysts always recommend that investors take into account their risk profile and diversify their portfolio.

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