Oct 31 2023, 09:02
15 large-cap stocks potential based on their profit rates:
Analysts and fund managers are saying
the small- and mid-cap segments
are overvalued and it is time to look
at large-caps, which are looking
more attractive both in terms of
valuations as well as fundamentals.
The Nifty is traded at a PE of 20.9x
as compared to 25x for the Nifty
midcap 150 index. While there are
many companies in the large-cap
space that are expensive, the fact
is that they are market leaders in
their respective segments.
the fastest- growing large-caps based on the last four quarters (ending June 2023) and came out with a list of 15 companies that have the potential to do well in the coming years. Sales growth, profit growth, and also companies in which profits are growing faster than sales were scrutinised.
Banks are also absent except for Union Bank of India. This is largely because corporate credit is yet not very strong and banks are dependent on retail credit, which is a very competitive business.
top 15 companies
Company name
1Y Returns (%)
P/B (x)
P/E (x)
Mahindra & Mahindra Ltd.
16.74
4.09
23.66
Maruti Suzuki India Ltd.
16.80
4.96
28.54
NTPC Ltd.
38.65
1.59
11.57
Oil & Natural Gas Corporation Ltd.
40.17
0.87
6.91
Grasim Industries Ltd.
7.63
2.59
73.16
Reliance Industries Ltd.
-7.56
3.11
35.55
Samvardhana Motherson International Ltd.
45.10
1.98
75.25
Ultratech Cement Ltd.
27.55
4.34
42.66
Union Bank of India
88.85
0.88
6.29
ITC Ltd.
25.43
8.04
27.12
Wipro Ltd.
-0.08
3.73
21.41
Hindalco Industries Ltd.
10.61
1.73
41.37
Vedanta Ltd.
-25.16
1.13
2.76
Jindal Steel & Power Ltd.
37.16
1.57
Power Finance Corporation Ltd.
170.19
1.09
6.27
Note: This is a list of the top 200 companies where quarterly profits have grown faster than sales.The last five quarters for analysis have been taken.
Top 15 companies based on sales and net profits
FY23 growth rate (%)
Company name
Jun 2023 (INR crore) Sales
growth rate (%)
Sales FY23 (INR crore)
Mahindra & Mahindra Ltd.
33,406.44
3
122,475.04
34
Maruti Suzuki India Ltd.
32,338.50
1
119,712.00
33
NTPC Ltd.
43,075.09
-3
175,705.70
29
163,823.59
0
660,584.82
28
Oil & Natural Gas Corporation Ltd.
Grasim Industries Ltd.
31,065.19
-7 73
121,239.13
26
Reliance Industries Ltd.
210,831.00
-3
890,871.00
25
22.462.18
0
78,957.70
23
Samvardhana Motherson International Ltd.
Ultratech Cement Ltd.
17,737.10
-5
63,743.06
20
Union Bank of India
23,613.18
7
97,078.53
19
ITC Ltd.
18,639.48
-2
72,918.76
17
Wipro Ltd.
22,831.00
-2
93,253.00
14
Hindalco Industries Ltd.
52,991.00
-5
224,515.00
14
Vedanta Ltd.
33,733.00
-11
150,159.00
11
Jindal Steel & Power Ltd.
12,588.34
-8
53,092.59
3
20,992.49
5
78,064.06
2
source: et
Oct 31 2023, 11:16