fbpx
Top 10 Companies in India by Market Capitalization

Top 10 Companies in India by Market Capitalization.

Top 10 Companies in India by Market Capitalization (Updated):

The market capitalization of a company is a good tool for investors to judge the size of a company and to determine the risk.

What is market capitalization?

Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks. It is calculated by

Market capitalization = (Current market price of 1 share)*(total number of outstanding shares)

It helps to classify the companies in different types like large cap, mid cap, and small cap companies.

The stocks with a market cap of Rs 10,000 crore or more are large-cap stocks. Company stocks with a market cap between Rs 10,000 crore and 500 crores are mid-cap stocks and those less than Rs 500 crore market cap are small-cap stocks.

Related post: Basics of Market Capitalization in Indian Stock Market.

Example: 

Just by looking at the share price, you cannot judge the size of a company. For example, here are the share price of two companies from the automobile sector.

  1. Tata Motors – Rs 421.55
  2. Eicher Motors – Rs 30,510

Which company is bigger?

If you just look at the share prices, you might think that Eicher motors share price is quite large compared to Tata motors, and it might be big.

However, the total number of outstanding shares of Tata motors is much large. Tata motors have around 340.4 Crore shares while Eicher motors have 2.72 crores shares.

Therefore, the market capitalization of Tata motors is Rs 143,525.65 Crores while the market capitalization of Eicher Motors is 82970.65 Crores.

Therefore, Tata Motors is a bigger company compared to Eicher motors.

Top 10 Companies in India by Market Capitalization

Here is the list of the top 10 (+4 Bonus) companies in India by market capitalization:

S. No Company Name Industry Last Price Market Cap (In Cr)
1 Reliance Refineries, Oil & Gas 1,210.30 7,37,576.57
2 TCS IT/Software company 2,076.90 7,36,105.31
3 HDFC Bank Non-public sector banking 1,961.95 5,32,657.37
4 ITC Cigarette, Hotels, Consumer products 299.65 3,66,512.17
5 HUL Consumer products 1,650.00 3,57,166.37
6 Infosys IT/Software company 720.40 3,14,698.31
7 HDFC Financial company 1,831.15 3,09,848.84
8 SBI Public sector bank 271.40 2,47,917.11
9 Kotak Mahindra Private Bank 1,220.00 2,42,213.31
10 Maruti Suzuki Automobile Industries 8,207.00 2,32,602.83
11 ONGC Oil drilling & Exploration sector 176.65 2,26,699.10
12 ICICI Bank Financial services company/ Banking 320.85 2,06,442.74
13 Larsen Construction Engineering Company 1,332.25 1,86,779.72
14 Coal India Mining Company 280.55 1,74,148.86

Disclaimer: This data is updated on September 19, 2018. As the stock price changes in the future, the market capitalization will also change. Hence, the list of top 10 companies in India by market capitalization can also change in the future.

In addition, you can also get the list from the money control website here.

Also read: How to Invest in Share Market? A Beginner’s guide

Tags: Top 10 Companies in India by Market Capitalization, top 10 biggest company in india, top companies in india, company market capitalization
Companies with Highest Share Price in India

#12 Companies with Highest Share Price in India (Updated).

#12 companies with highest share price in India (Updated- August 2017):

Hi Investors. In this post, we are going to discuss the 12 companies which have the highest share price in India.

Note: Please study the companies carefully if you want to invest in any of the stocks mentioned in the list here. A high stock price doesn’t guarantee a fundamentally strong company or a good investment.

Let’s get started.

#12 Companies with Highest Share Price in India

1. MRF (Rs 74,076)

mrf-tyres Companies with Highest Share Price in India

Market Capitalisation = Rs 31,408 Cr

Madras Rubber Factory (MRF) is a Tyre manufacturer that produces a wide range of tyres. It specializes in Car & bike tyres, trucks/buses tires etc.

 MRF has the highest share price in India among all the listed companies on BSE/NSE.

The all-time high share price of MRF is Rs 81,426. The stock is currently trading at a standalone PE of 25.20.

MRF has never split its share and has a face value of Rs 1o. Noticeably, this company was trading at a price of Rs 10,000, in November 2012.

2. Page Industries (Rs 34,652)

page industries

Market Capitalisation = Rs 38,637 Cr

One of the famous company under Page Industries is Jockey (Underwear and inner wears company). Page industries is in readymade apparels (garment) industries. It has turned out to be a multi-bagger stock in the last couple of years and has given a return of over 500% in last 5 years.

Page industries is currently trading at a PE of 100.06.

3. Rasoi (Rs 30,270)

rasoi

Market Capitalisation = Rs 292.41 Cr

This is one of the lesser known company on the list of companies with highest share price in India. Rasoi Ltd is in the Vanaspati and oil industry.

The stock is currently trading at a standalone PE of 43.13 against the industry PE of 24.57 (52 weeks high- Rs 49,601).

4. Eicher Motors (Rs 28,870)

eicher motors

Market Capitalisation = Rs 78,721 Cr

The parent company of Royal Enfield (Bullet bikes) and Eicher trucks. This is in the automobile sector.

This stock has turned out to be a multi-bagger and given a return of over 1,100% in the last 5 years.

 Eicher motor was trading at a price of Rs 2,500 in November 2012.  The current PE of Eicher Motors is 37.96.

Also read: How to Invest in Share Market? A Beginner’s guide

5. 3M India (Rs 25,419)

3m india

Market Capitalisation = Rs 28,647 Cr

3M India has a diversified portfolio of products in dental cement, health care, cleaning etc. This stock is currently trading at a PE of 83.26.

6. Honeywell Automation (Rs 21,937)

honeywell

Market Capitalisation = Rs 19,392 Cr

Honeywell is a leader in providing integrated automation and software solutions. It has a wide product portfolio in environmental and combustion controls, and sensing and control etc.

This stock has given a return of over 475% in the last 5 years. It is currently trading at a PE of 67.79.

Also read: #9 Reasons Why Most Indians do not Invest in stocks.

7. Bosch (Rs 18,801)

bosch

Market Capitalisation = Rs 57,378 Cr

Bosch ranks 4th in the list of companies with highest share price in India. It is a part of the German multinational company Robert Bosch (or just Bosch), headquartered in Germany.

Bosch belongs to automobile ancillaries industry and currently trading at a PE of 36.80 (52-week high- Rs 25,240).

8. Shree Cements (Rs 18,373)

shree cements

Market Capitalisation = Rs 64,012 Cr

Shree Cement is an Indian cement manufacturer headquartered in Kolkata. It is the biggest cement maker in northern India. 

Shree cements is currently trading at a PE of 52.32. (52-week high- Rs 20,538)

9. Polson (Rs 14,301)

polson

Market Capitalisation = Rs 172.41 Cr

Polson ltd is a chemical industry company which deals with dyes and pigments. This stock has given a return of 4,000% in the last 5 years. It was trading at just Rs 300 in November 2012.

Polson is currently trading at a PE of 24.72.

10. Nestle India (Rs 11,369)

Nestle Products

Market Capitalisation = Rs 109,617 Cr

Nestle India is in food processing industry with a wide variety of products like Maggi, Kit-Kat, Nescafe, Every day etc.

 This stock is currently trading at a PE of 74.36.

11. Procter & Gamble (Rs 10,051)

procter and gamble

Market Capitalisation = Rs 32,626 Cr

P & G is in the personal care industry with products in hygiene and health care. Few famous products of Procter & Gamble group are Ariel, Duracell, Gillette, Head & Shoulder etc.

This stock is currently trading at a PE of 87.10.

12. Maruti Suzuki (Rs 9,163)

maruti suzuki

Market Capitalisation = Rs 276,808 Cr

It is the leading car manufacturer in India with most selling cars like Swift, Alto, WagonR etc. Maruti Suzuki is in the automobile sector.

Maruti has given a return of over 450% in the last 5 years. It is currently trading at a PE of 34.14

BONUS:

13. Tasty Bite Eatables (Rs 8,801)

tasty bytes

Market Capitalisation = Rs 2,258 Cr

This company operates in the food processing industry with products like tasty bite rice, noodles, entrees etc. This stock is currently trading at a PE of 83.12.

Summary:

Here is the list of 12 Companies with Highest Share Price in India. Feel free to share this infographic with your friend:

Disclaimer:

The list of 12 Companies with Highest Share Price in India is till date August 2018. The stock market is dynamic and the stock prices will change in the future, which may change the list or the order of the companies listed here.

Also read: How To Invest Rs 10,000 In India for High Returns?

That’s all for this post on ‘#12 companies with the highest share price in India’. Most of the companies on this list are trading at a high PE. If you want to buy any one of them, then please study the company carefully. Past performance does not guarantee the future returns.

Further, do comment below which other stocks can find a place in this list by next year (August 2019), according to you?

New to stocks? Want to learn how to select good stocks for long-term investment? Check out my amazing online course: HOW TO PICK WINNING PICKS? The course is currently available at a discount.

Tags: Most Expensive Stock Per Share Price in India, Most Expensive Stock Price in India, Highest Share Price, 10 most expensive stocks in india, costliest share in India, Companies with Highest Share Price in India
Successful Stock Market Investors in India

Rakesh Jhunjhunwala Latest Stock Portfolio

Rakesh Jhunjhunwala latest stock portfolio: Rakesh Jhunjhunwala, the big bull of Indian stock market, is one of the most successful investors in India. He has created a huge wealth by investing in Indian stock market.

Starting with the initial investment of only Rs 5,000, currently he is sitting on a huge net worth of around Rs 15,000 crores.

Many of the stocks in his portfolio has holding period of over 5 years and given multiple times returns on his investment.

Also read: 3 Insanely Successful Stock Market Investors in India that you need to Know.

His Idealogy:

Rakesh Jhunjhunwala follows the idealogy of Warren buffet and believes in long term investment.

He strongly advocates the growth of India and it’s rising economy.

Mr. Jhunjhunwala is also believes in learning from mistakes. He often says- ‘Mistakes are your learning friends. The idea is to keep these mistakes small.’

In today’s post, I am going to present top stocks in Rakesh Jhunjhunwala’s latest stock portfolio.

Note:

My sincere request to the readers that please do not copy the portfolio of Mr Rakesh Jhunjhunwala blindly. He has his own strategy of investing and might have bought the stocks when it was selling at a decent price. You do not want to pay double amount of what Mr Jhunjhunwala has paid and expect the same returns.

The motive of this post is to educate the readers with the portfolio of a successful stock investors, so that you can learn few new ideas and create your own portfolio.

However, if you want to buy these stocks, make sure to study the stocks carefully. Do not buy the stocks just because Rakesh Jhunjhunwala has bought these stocks. Study the stocks, make your strategy and then invest.

Rakesh Jhunjhunwala latest stock portfolio:

Company Name Sector Current Price (in Rs) No of stocks (in lakhs) Investment value (Rs in Crores)
Titan Company Ltd Jewellery/Luxury goods 595 740 4,380
Lupin Ltd Pharma 1042 79 830
Escorts Ltd Auto tractors 698 112 780
DHFL Finance- Housing 546 100 546
Delta corp Ltd Construction/ Real estate 213 225 480
CRISIL Ltd Miscellaneous /Ratings 1785 400 714
Rallis India Ltd Chemicals/ Pesticides 229 195 445
Karur Vysya Bank Ltd Private Bank 143 216 310
MCX- Multi commodity exchange of India Ltd Miscellaneous 1063 200 212
Edelweiss Financial Services Ltd Finance 266 90 240
Aptech Limited Computer/software 309 95 297
NCC Ltd Construction & contracting 85 567 490
Federal Bank Ltd Private Bank 117 416 490
Aurobindo Pharma Ltd Pharma 744 65 490
VIP Industries Plastics 262 52 137
Jai Prakash Associates Conglomerate 19.90 250 50

Read more at: Jhunjhunwala is making a killing with contra bets; portfolio stocks up 200% 

titan company

Summary:

Here is a quick review of the Rakesh Jhunjhunwala latest portfolio:

If you want to get in-depth knowledge about Indian Stock Market, I will highly recommend you to read this book: How to avoid loss and earn consistently in the stock market by Prasenjit Paul

That’s all. I hope this post is useful to the readers.

If I have missed any big company name in Rakesh Jhunjhunwala latest stock portfolio, do comment below.

Tags: Top Stocks in Rakesh Jhunjhunwala Portfolio, Rakesh jhunjhunwala stock portfolio, Rakesh jhunjhunwala latest portfolio, Rakesh jhunjhunwala portfolio 2017, Rakesh jhunjhunwala holdings, Rakesh jhunjhunwala stock portfolio, Rakesh jhunjhunwala stock portfolio 2017, Rakesh jhunjhunwala stock holdings 2017, Rakesh jhunjhunwala latest stock portfolio 2017, top stocks form Rakesh jhunjhunwala portfolio, Rakesh jhunjhunwala portfolio updated 2017, Rakesh jhunjhunwala stock pickings, Rakesh jhunjhunwala stock holdings
How To Invest Rs 10,000 In India for High Returns

How To Invest Rs 10,000 In India for High Returns?

How To Invest Rs 10,000 In India for High Returns? Investing is the best way to grow your money. Gone are the days when people kept their fortune (gold) buried below their land. Everyone is now interested to make more money through their investments.

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” – Robert G. Allen

However, when I look around, a very few people know how to invest their money intelligently. Most are even not aware of the investment options available to them in India. Today, I am going to suggest the best answer on how to invest Rs 10,000 in India for maximum returns. Therefore, be with me for the next 8-10 minutes to start your journey of financial investment as a successful investor.

There are a number of investment options available in India to invest Rs 10,000 or more. Here are the few options and the expected average returns in a year duration:

  1. Savings: 4–6% per year
  2. Fixed Deposit: 6–8% per year
  3. Mutual funds: 10–18% per year
  4. Stock Market: 15–25% per year

Besides, other investment options available in India are Real estates, gold, silver, forex, cryptocurrencies, commodities like petroleum etc. However, for an investment of Rs 10,000- these are little out of scope.

So, how to Invest Rs 10,000 In India for High Returns? Among all the options mentioned above, Investment in the Stock market and Real Estate are the ones that have consistently out-performed all the other investment options in long duration. However, investing in real estate won’t be possible with an amount of Rs 10,000 until you take a lot of credits.

Hence, Stock market is the best option available for investment of Rs 10,000 to get maximum returns.

Also read: Sensex has given 9x returns in last 20 years; it is time to be a buyer now

Here is a graphical comparison of returns on Stocks, bonds, gold etc for a period of over 200 years.

stock vs bond vs gold

(Source: http://www.aaii.com/files/images/articles/9298-figure-1.jpg)

Note: Although the above graph doesn’t show returns from Indian stock market, however, stocks (in general) follow the same trend compared to other investment options all over the world. Please ignore the figures in the chart.

Now. let us analyze the past of Indian stock market and find out -how much return you might have got, if you had invested Rs 10.000 in a few famous companies, a few years ago.

  • Eicher Motors (over 80 times returns in the last 10 years)

Products: Royal Enfield, Eicher Trucks etc- 

If you had invested Rs 10,000 in Eicher motors 10 years back, then currently your return would have been over Rs 8,00,000 i.e. 8 lakhs. I wish my dad had bought the stocks of Eicher motors instead of Royal Enfield ‘bullet’ bike 10 years ago 🙁

Eicher motors multibagger stocks How To Invest Rs 10,000 In India for High ReturnsEicher motors share multibagger stocks How To Invest Rs 10,000 In India for High Returns

  • Page Industries (over 50 times return in last 10 years)

Products: Innerwear & Leisurewear (JOCKEY) etc- 

If you had invested Rs 10,000 in Page Industries 10 years back, currently you would have been sitting of a huge pile of over Rs 5,00,000 i.e 5 lakhs. Wish people had paid more attention to their underwears :p

Page industries stock multibagger stocks How To Invest Rs 10,000 In India for High Returns

Also Read: How to follow Stock Market!

  • MRF (Over 17 times return in last 10 years)

Product: Tyres-

If you had invested Rs 10,000 in MRF 10 years ago, you would have got a handsome return of Rs 1,70,000 i.e. Rs 1.7 lakhs now. Just if any bike servicing guy had noticed how many people are using MRF tyres and had bought few stocks of MRF Tyres a few years back, he would have been a rich happy man by now.

If you want to get in-depth knowledge about Indian Stock Market, I will highly recommend you to read this book: How to avoid loss and earn consistently in the stock market by Prasenjit Paul

MRF multibagger stocks How To Invest Rs 10,000 In India for High Returns

MRF stock price multibagger stocks How To Invest Rs 10,000 In India for High Returns

  • Symphony (Over 12 times return in last 5 Years)

Products: Domestic air coolers, industrial air coolers, and water heaters

If you had bought the stocks of SYMPHONY worth Rs 10,000 just 5 years ago, you would have got a return of over 1,20,000 i.e. 1.2 lakhs now. Huh, we enjoyed the air cooler but ignored the company 5 years back. Our bad 🙁

Symphony multibagger stocks How To Invest Rs 10,000 In India for High Returns

Symphony share price multibagger stocks How To Invest Rs 10,000 In India for High Returns

Eicher Motors, Page Industries, MRF, Symphony– all are common companies in the Indian market, which every Indian might already know. Most of the people have directly or indirectly used their products. Further, we can also notice that all these multi-bagger companies (companies which have given multiple time returns) have provided a great product/service to their customers, which resulted in constant growth in sales and profits.

Also Read:

How To Invest Rs 10,000 In India in Stock Market?

Here are few tips on how to invest Rs 10,000 in India in stocks to get maximum returns:

  • Do the research carefully:

Invest in the company, not the stock. If the company is doing great, the stock will also perform well. Research the company carefully before buying a stock.  Understand the company first. Learn about its product and services. Study the company’s fundamentals. If you want to read more about how to select a stock, you can find an excellent post here: How To Select A Stock To Invest In Indian Stock Market For Consistent Returns?

  • Invest in just one or two stock:

Everywhere there is a hullabaloo about diversification while investing- ‘Do not put all your eggs in the same basket’. However, in reality, the concept is different if we expect maximum returns from small investments. Do not diversify your portfolio when you are investing just Rs 10,000. Instead, invest in just one or two great stock.

Diversification is used when you are investing a huge amount of money like Rs 50k or above. It’s the big bets which can help you to get great returns. Diversification kills the profit when the investment in small.

Let’s understand this with an example. Suppose, you invested Rs 10,000 in a good stock. The stock gave a return of +50% percent in a year. Then, the total return amount will be Rs 15,000. Now, let us assume another scenario in which you invested Rs 10,000 in 3 stocks. The return on the stocks after a year are +10%, +50%, and +15%. The overall return amount will be Rs 12,500 (+25%). All the three stocks cannot give similar returns and one of them might be fundamentally strongest. If only you had invested in the fundamentally strongest among the three, you would have been able to get a double return (from 25% to 50%) on your investment.

In addition, there is not much to lose for small investment like Rs 10,000. People diversify their portfolio so that they won’t lose lakhs of rupees (and go bankrupt) if their investment strategies failed. However, if you are planning to invest just Rs 10,000; then the reason for investment must be that you have extra savings and you want to get a good return on the investment. In such cases, go for a big sure shot.

Quick Note: If you do not have a big risk appetite, then ignore this tip and diversify your investments. 

warren buffet- How To Invest Rs 10,000 In India for High Return

  • Invest in what you know: 

You don’t need to find an unknown hidden stock to get multi-bagger returns. There are a number of common well-known stocks (Eicher motors, Symphony, Page Industries, MRF etc) which have given multiple times returns in the past and will give in the future. Look for a growing company around you. Study if they are listed on the stock exchange. Learn the fundamentals of those stocks. And if they are fundamentally healthy, invest in the stocks. This is an effective way to find multi-bagger stocks, even for regular investors.

This concept was introduced by the legendary fund manager Peter Lynch in his best selling book ‘ONE UP ON  WALL STREET’.

  • Invest in Mid-caps:

These companies have the potential to become a large-cap company in the long term frame. They have a high growth rate compared to the large caps which have already reached saturation and the chances of large caps giving multiple time returns are highly unlikely. In addition, Mid-cap companies have good capital to stay out of debt and live a long life. A good growing mid-cap stock can easily become a multi-bagger.

Few people advice to buy penny stock or the small-cap stocks for getting high returns. However, for the small caps, the chances of the company growing broke is also high. Most small-cap companies are not able to sustain in harsh economic conditions which is sure to occur once or twice in the long-term period. Therefore, investing in small-cap companies has more risk than reward.

That’s all. I hope this post ‘How to invest Rs 10,000 in India for maximum returns’ is useful to the readers. In addition, do comment below if you have any doubts or suggestions on how to invest Rs 10,000 in India in the stock market. I will be happy to read your feedback. #HappyInvesting

Quick Note: If you are new to stocks and confused where to start, here’s an amazing online course for the newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS. Enroll now and start your stock market journey today!

Best Stocks for Long term Investment in India

Best Stocks for Long term Investment in India.

Best Stocks for Long term Investment in India. In this post, I am going to describe three great stocks which anyone can keep in your portfolio for the long term. I have selected these stocks from different sectors in order to diversify the portfolio.

The stock selection is based on the fundamental analysis. If you want to read more about how I select stock for long term investment, you can read it here: How To Select A Stock To Invest In Indian Stock Market For Consistent Returns?

Best Stocks for Long term Investment in India:

1. ITC:

itc best stock for long term investment in India 2017

Indian Tobacco Company (ITC) is one of the biggest conglomerate company in India. It has a diversified business which includes five segments: Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri-Business & Information Technology.

ITC was formed in August 1910 under the name of Imperial Tobacco Company of India Limited. Currently, it has over 25,000 employees. Now, let us discuss few of the leading products of ITC:

ITC Ltd sells 81 percent of the cigarettes in India. ITC’s major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Ice Burst, Mild & Ultra Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and Duke & Royal.

Many of the FMCG sector companies are facing competition with Baba Ramdeo’s Patanjali. But, I am damn sure that Patanjali will never enter the cigarette’s sector as by doing so they will lose their core values. Hence, ITC will continue to have a monopoly in this sector of the market.

Other businesses

  • Foods: Aashirvaad, Mint-o, gum-o, B natural, Sunfeast, Candyman, Bingo! and Yippee!. ITC is present across 6 categories in the Foods business namely Staples, Snack Foods, Ready-To-Eat Foods, Juices, Dairy Product and Confectionery.
  • Lifestyle apparel: ITC sells its products under the Wills Lifestyle and John Players brands.
  • Personal care products include perfumes, haircare and skincare categories. Major brands are Fiama Di Wills, Vivel, Essenza Di Wills, Superia and Engage.
  • Stationery: Brands include Classmate, PaperKraft and Colour Crew.
  • Safety Matches and Agarbattis: Ship i Kno and Aim brands of safety matches and the Mangaldeep brand of agarbattis (Incense Sticks).
  • Hotels: ITC’s Hotels division (under brands including WelcomHotel) is India’s second largest hotel chain with over 90 hotels throughout India.
  • Paperboard: Products such as specialty paper, graphics, and other paper are sold under the ITC brand by the ITC Paperboards and Specialty Papers Division like Classmate product of ITC well known for there quality.
  • Packaging and Printing: ITC’s Packaging and Printing division operates manufacturing facilities at Haridwar and Chennai and services domestic and export markets.
  • Information Technology: ITC operates through its fully owned subsidiary ITC Infotech India Limited, which is a SEI CMM Level 5 company.

itc best stock for long term investment in India 2017

Source: ITC- Wikipedia

ITC Revenue source

Fig: ITC Gross Revenue  (Source: ITC Annual Report 2017)

Now that we have studied about the product and services of ITC, let’s move forward to find out the company’s financials to understand how healthy the company it.

Financial Study of ITC:

ITC is a large-cap company with market capitalization of over 410,000 crores.  It is currently trading at a PE of 39 against the industry PE of 40.5. The return on equity (ROE) for the last 3 is above 25%.

Let’s first look at the annual results of ITC.

Source: https://www.screener.in/company/ITC/

The annual results are showing a good yearly growth of ITC.

From the report, we can notice that the sales, operating profit, and the net profit of ITC are consistently increasing for the last 10 years. Moreover, the net profit has almost doubled in the last 5 years. ITC has been maintaining a healthy average dividend payout of 57.86% for last 3 years. Although dividends are not criteria to choose best stocks for long-term investment in India, however, a good consistent dividend is a sign of a healthy company.

Further, in the latest press release, the management of ITC has told that ITC will continue to give similar results in the future. The sales of ITC are expected to double from the current by the year 2020.

Now, let’s study the balance sheet of ITC to find out further.

Here, we can notice that the debt of ITC is very small compared to its total assets. Therefore, ITC can be considered as a virtually debt-free company.

Overall, studying the company minutely, it can be concluded that ITC is fundamentally very strong and one of the best Stocks for Long-term Investment in India. You should keep ITC in your portfolio for at least the next 3-4 years to get a good consistent return.

Quick Note: If you are new to stock analysis, here’s a video that can help you understand how to perform fundamental analysis of stocks. I hope this video is useful to you.

2. HDFC BANK:

Stocks for Long term Investment in India 2017

HDFC Bank is India’s leading banking and financial service company. It is India’s largest private sector lender by assets. It has 84,325 employees and has a presence in Bahrain, Hong Kong, and Dubai.

HDFC Bank is the largest bank in India by market capitalization and was ranked 69th in 2016 BrandZ Top 100 Most Valuable Global Brands. HDFC Bank provides a number of products and services which includes Wholesale banking, Retail banking, Treasury, Auto (car) Loans, Two Wheeler Loans, Personal Loans, Loan Against Property and Credit Cards.

The total revenue collected by HDFC bank in 2016 was around Rs 74,373 crores. The net profit in the same financial year was Rs 12,817 crores.

Source: HDFC Bank – Wikipedia

Now, let’s look at the financials of the company to check its fundamentals.

A financial study of HDFC Bank:

HDFC bank is a large-cap company with a market capitalization of Rs 430,900 Crores. It is currently trading at a PE of 29 against the Industry PE of 26. The return on equity (ROE) for the last three years is averaged 19.5%.

From the annual results of HDFC Bank, we can notice that the sales and profit are consistently increasing over the last decade.

The net profit has more than doubled in the last five years.

Note: when you study the Earnings per share (EPS) of HDFC bank, you will notice that EPS fell in 2012 (compared to 2011). However, in actual, this is because of the stock split. HDFC Bank split its share in the ratio 10:2 in July 2011. While doing the fundamental analysis of a stock, you should give extra care to stock splits and bonus issues.

Now, let’s check the balance sheet of HDFC Bank.

Source: https://www.screener.in/company/HDFCBANK/

Here we observe that the compounded sales growth of HDFC bank is around 24% for the 10-year average and around 19% for the last 3 years. In addition, the average compounded profit growth for the last three years is 19.73%.

Further, while investing Stocks for Long-term Investment in India in the banking sector, you should always check the gross non-performing asset (NPA) percentage. As a thumb rule, companies with gross NPA less than 2% is considered worth investigating. For HDFC Bank, the gross NPA is around 1.05%, which is good.

Overall, HDFC has shown amazing results in the past and the company’s future also looks very healthy. This makes HDFC a good stock for long term investment in India in the banking sector.

If you are new to stock market and want to learn stocks from scratch, I will highly recommend you to read this book: ONE UP ON THE WALL STREET by Peter Lynch- best selling book for stock market beginners.

3. ASIAN PAINTS:

Stocks for Long term Investment in India

The paint industry is an evergreen industry and you should always keep a good stock from this sector in your portfolio.

Whatever may be the economy of the country, new houses will be consistently made, and new companies will regularly open. And in all these, a paint company will be required.

Asian Paints is one of the largest Indian paint company and manufacturer. Since its foundation in 1942, Asian paint has come a long way to become India’s leading and Asia’s fourth-largest paint company, with a turnover of Rs 170.85 billion. It operates in 19 countries and has 26 paint manufacturing facilities in the world, servicing consumers in over 65 countries.

As of 2015, it has the largest market share with 54.1% in the Indian paint industry. Asian Paints is the holding company of Berger International.

Asian Paints is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services.

Source: Asian Paints Ltd – Wikipedia

Now, let us look at the financials of the Asian Paints.

The financial study of Asian Paints:

Asian paints is a large-cap company with a market capitalization of Rs 107,175 crores. It is currently trading at a PE of 59 compared to the industry PE of 55. The return on equity (ROE) for the last three years is averaged to be 29%.

Here are the annual results of Asian Paints.

Source: https://www.screener.in/company/ASIANPAINT/consolidated/

Here, we can notice a positive trend in the financial growth of Asian Paints. The sales and profits are consistently increasing year-by-year. The net profit of Asian paints has doubled itself in the last 5 years and has become more than 6 times in the last 10 years.

Here, we can also notice that Asian paint is a virtually debt-free company. The total debt of Asian paints is around Rs 37.21 crores against the net worth of Rs 6,950 crores.

Overall, Asian paints is a fundamentally strong company with a healthy growth rate and should be considered worth investing as one of the great stocks for long-term investment in India.

Conclusion:

All the three stocks explained in this post- ITC, HDFC Bank, and Asian paints are large-cap companies. They have almost a monopoly in the market with a huge moat. The management of these companies is transparent and effective. In short, these three stocks are few among the best stocks for long term investment in India.

I hope this post “Best Stocks for Long term Investment in India” is useful to the readers. Do comment below what are your opinions about these stocks. Happy Investing.

Quick Note: The stocks discussed in this post are for educational purpose only and focuses to teach the steps and strategies to evaluate stocks. It should not be treated as an advisory or recommendation. 

Want to learn how to select good stocks for long term investment? Check out our amazing online course for the stock market beginners: HOW TO PICK WINNING PICKS? The course is currently available at a discount.

Disclaimer: This post is a personal research and opinion of the author and should not be taken as an advisory. Please study the stock carefully before investing or take the help of your financial advisor.
10 Common Stocks at Rs 100 or less as Market Price

10 Common Stocks at Rs 100 or less as Market Price.

10 Common Stocks at Rs 100 or less as Market Price. Many people think that they require huge lot of money to invest in share market. But it is not so true.There are lots of company in Indian stock market whose market price is even less than the cost of a burger.

There are a number of penny stocks trading between Rs 1 to 10 (find more here). Even, big companies like Ashok leyland, Tata Power, Steel Authority etc are also selling at a market price lower that Rs 100. So, today I am listing the list of such 10 Common Stocks at Rs 100 or less as Market Price.

10 Common Stocks at Rs 100 or less as Market Price

S.No Company Price (In Rs)
1 Idea Cellular 86.70
2 Federal Bank 92.70
3 Ashok Leyland 82.50
4 Tata Power 85.55
5 Crompton Greaves 79.50
6 IDBI Bank 75.10
7 National HyroElectric Power Corporation (NHPC) 32.25
8 Reliance comm 36.80
9 SAIL (Steel Authority India Ltd) 63.85
10 Bombay Dyeing 83.50

Funny, the stock prices of these companies are even less than the Ola or Uber ride fare.  Still people speculate that buying stocks are expensive.

In addition, you can further find a list of large number of stocks, who range from RS 1 to 100  here: http://money.rediff.com/companies/price-sorted/10-100

Disclaimer: Please note that I am not recommending  you to buy these stocks just because their price is low. You should always buy a stock only when its selling at a bargain price. Bargain stocks are not such stocks whose share price is low. Its those stocks which are trading at a much lower than its intrinsic value.

Tags: 10 Common Stocks at Rs 100 or less, Indian stock market 10 Common Stocks at Rs 100 or less as Market Price, 10 Common Stocks at Rs 100 or less as Market Price in India

10 Common Stocks that gave more than 100% return last year

10 Common Stocks that Gave More Than 100% Return Last Year -2017

10 Common Stocks that gave more than 100% return last year. Peter lynch, the legendary investor and fund manager, used to say ‘‘Invest in what you know’’ in his best-selling book “One up on the Wall Street”. By this he means –‘there are a number of common stocks which anyone can find easily around them if they are looking’. You do not need to find a rare petroleum stock which no over has ever heard.  You just have to look around and find some decent companies in your surroundings to invest in.

“Know what you own, and know why you own it.”

“The simpler it is, the better I like it.”

“The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.”

– Peter Lynch

So, toady I have compiled a list of 10 such common stocks which a common people could have found easily while walking in their city or during travelling in the city-bus.

Here is the list of the 10 Common Stocks that gave more than 100 percent return last year. I hope few of them are in your portfolio for over a year.

10 Common Stocks that gave more than 100% return last year.

STOCK 8-May-17 9-May-16 % Change
SENSEX 29926.15 25688.86 16.49
NIFTY 9314.05 7866.05 18.40
INDIAN BANK 352 92.9 278.90
RURAL ELECTRIFICATION 216.6 84.82 155.36
FEDERAL BANK 118.9 49.15 141.91
BAJAJ FINSERV 4409.05 1875 135.14
SUN TV 851 364.5 133.47
PUNJAB NATIONAL BANK 176 82.8 112.56
BANK OF INDIA 185.4 89.35 107.49
INDIAN IOL CORP (IOC) 428.55 209.9 104.16
JAYPEE INFRATECH 14 6.95 101.43
MRF 67501 33650 100.59

Here is the list of other six common stocks that has given more than 50 percent return for the last year.

Best book to learn investing mindset: Rich Dad Poor Dad: What the Rich Teach their Kids About Money that the Poor and Middle Class Do Not!

 I highly recommend you to read this book.

10 Common Stocks that gave more than 50% return last year.

STOCK 8-May-17 9-May-16 % Change
GITANJALI  GEMS 68.75 35.65 92.84
HPCL 531.5 278.5 90.84
MARUTI SUZUKI 6626 3846.5 72.26
YES BANK 1616.25 945.05 71.02
APOLLO TYRES 240.45 157.2 52.95
TATA COMM 652.05 429.08 51.96

 

Tags: 10 Common Stocks that gave more than 100% return last year, List of 10 Common Stocks that gave more than 100% return last year 2016-17