Large caps are big companies that are well established and stable. These stocks are considered safe and are less volatile compared to mid-caps and small-caps. Large companies pay good dividends provides a regular source of income to investors. Out of the 78 stocks of the BSE large cap index, 71 have gained while 7 have lost money between 2 January 2017 and 22 December 2017. Let us look at the top 5 stocks of the BSE large cap index that delivered highest returns in 2017:
Titan Company: The company is a joint venture between the TATA Group and the Tamil Nadu Industrial Development Corporation and commenced operations in 1984. It serves in the lifestyle space with presence across India and in 32 countries around the world. Its business segments include jewellery, accessories, and eyewear. In the recent years, the company has explored the fragrances market and is experimenting with Indian ethnic wear by introducing branded sarees. In September 2017 quarter, the sales revenue and net profit grew by 28 per cent and 67 per cent respectively. Growth was mainly driven by the robust performance of jewellery, which rose 36.9 per cent YoY. Watches and eyewear segments grew by 9 per cent and 3.5 per cent, respectively. The company's aggressive foray into the wedding segment would be the key revenue driver going forward. Out of 28 analysts covering the stock, 18 have recommended buy, 6 have recommended hold and 4 have given sell rating. This year, the stock outperformed the BSE large cap index by over 5 times. Between 2 January 2017 and 22 December 2017, the stock delivered 157 per cent returns compared to BSE large-cap index that delivered 29.2 per cent.
DLF: A real estate company with business primarily focuses on the development and sale of residential real estate which include plotted developments, houses, villas and apartments of varying sizes and integrated townships, with a focus on the high-end, luxury residential developments. The development business also includes commercial and shopping complexes. In September 2017, the company's revenue and net profit declined by 23 per cent and 89 per cent respectively compared to Sep'16 quarter. Company's profitability declined due to sharp decline in residential sales, weak demand for luxury housing, stoppage of sales due to RERA compliance. The company has re-opened its projects and the pre-sales is likely to pick up in 3QFY18. Irrespective of muted financial performance, the stock is among the biggest large-cap gainers in 2017. It outperformed the BSE large cap index by over 3.6 times. Between 2 January 2017 and 22 December 2017, the stock delivered 106.4 per cent returns compared to BSE large-cap index that delivered 29.2 per cent.
Bajaj Finance: A NBFC that deals in consumer durable (CD) and lifestyle product financing business. It has a diversified loan portfolio across four categories: SME, consumer finance, commercial loans and rural loans. In September 2017 quarter, the company's revenue and net profit grew by 32 per cent and 36 per cent respectively. AUM growth was at 38 per cent driven by consumer and commercial lending segments while rural business also continued its strong momentum. Company's valuations are likely to sustain amid better earnings visibility and improving return ratios (RoA and RoE). The stock outperformed BSE large cap index by over 3.5 times in 2017. Between 2 January 2017 and 22 December 2017, the stock delivered 104.8 per cent returns compared to BSE large-cap index that delivered 29.2 per cent.
Bajaj Finserv: A financial conglomerate engaged in life insurance, general insurance, consumer finance and other financial products. In September 2017 quarter, the company's top-line and bottom-line grew by 27.7 per cent and 16.6 per cent respectively. Top line growth was led by improvement in general insurance and life insurance premiums that grew by 37 per cent and 39 per cent respectively. The company is likely to maintain momentum on the back of gradual improvement in individual new business premium and robust growth in general insurance business. The stock outperformed BSE large cap index by over 2.8 times in 2017. Between 2 January 2017 and 22 December 2017, the stock delivered 84.2 per cent returns compared to BSE large cap index that delivered 29.2 per cent.
Maruti Suzuki: The company is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles). With its recent launches: Brezza, Baleno and new Dzire, the company has significantly strengthened its product portfolio and is consistently gaining market share. Its operating margins jumped to 16.9 per cent in Sep'17 quarter compared to 14.9 per cent in Sep'16 owing to cost control measures and healthy top-line growth. The stock recently touched an all time high of Rs 10,000 in the intra-day trade on 20 December 2017. Strong order backlog for 4-5 months and robust competitive position justifies the company's current valuations. Currently, 47 analysts are covering the stock. Out of these, 34 have rated buy, 12 have rated hold and 1 analyst have recommended sell. The stock outperformed BSE large cap index by over 2.6 times in 2017. Between 2 January 2017 and 22 December 2017, the stock delivered 77.5 per cent returns compared to BSE large-cap index that delivered 29.2 per cent.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today