Amid a roaring bull market, where stock prices are soaring to new record highs with each passing day, rewarding their shareholders with substantial gains. Let's delve into the performance of India's top five most valued firms.
Reliance Industries
The company is one of the most profitable companies in India and the largest publicly traded company with a market capitalization of ₹17,34,432 crore, according to the BSE. The company reported its highest-ever net profit of Rs. 66,702 crore for FY23.
The company shares have experienced a stellar gain of 9.18% in FY24 so far, rising from ₹2,331 per share to ₹2,545. The stock hit an all-time high of ₹2,856 in April last year.
Tata Consultancy Services
TCS, the country's largest IT company and the second most valuable company in India based on its market capitalization, which is around ₹11,91,917 crore. The company's shares have witnessed a modest gain of 1.52% in FY24 so far. From their February 2023 peak value of ₹3,575, the shares have corrected by almost 9.20% to date.
The underperformance of the stock has been attributed to a range of factors, including fears of a global recession in major markets including the United States and Europe. Indian IT companies rely heavily on these two markets, which make up more than 60% of their revenues.
Further, the unexpected exit of TCS's CEO and MD, Rajesh Gopinathan, has also contributed to the stock's underperformance. Adding to the troubles, global brokerage firm J.P. Morgan has maintained its 'underweight' call on TCS and has set a price target at ₹2,700 for March 2024, indicating a 17% downside from current levels.
HDFC Bank
Shifting the focus to the banking sector, HDFC Bank, which is the country's largest private-sector bank, has showcased positive growth in its share price. With a market capitalization of ₹9,14,294 crore, HDFC Bank shares have seen a gain of 2.74% in FY24 so far, rising from ₹1,609 to the current price of ₹1,653 per share.
On May 4, the shares marked a new all-time high of ₹1,734 apiece, surpassing their previous high of ₹1,722, attained in April last year. On the back of the ongoing merger with HDFC and the positive outlook of the entire banking space, brokerages have optimistic views regarding the lender going ahead.
Domestic brokerage house Motilal Oswal has reiterated its ‘buy’ call on the stock with a target price of ₹1,950, indicating an upside of another 15.55%. The brokerage noted that HDFC Bank remains one of its most preferred picks.
ICICI Bank
Similarly, ICICI Bank (Industrial Credit and Investment Corporation of India), India's second-largest private sector bank with a market capitalization of ₹6,46,877 crore, has witnessed notable growth.
The stock has gained 6% in FY24 so far and achieved a new record high of ₹958.8 per share on May 23. Notably, the stock finished the last four months with gains, with April registering the largest monthly gain of 4.61%.
In its latest note, brokerage firm Ventura Securities has initiated coverage on the stock with a 'buy' tag, setting the highest target price of ₹1,339 apiece. Under the Bull case scenario, the brokerage set an even higher price target of ₹1,557.
Hindustan Unilever
Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is India’s largest fast-moving consumer goods company. The company is a part of the everyday life of millions of consumers across India.
Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Glow & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, and more. The company is currently ranked as the fifth-most valued company in terms of market capitalization of ₹6,28,633 crore.
The company shares have zoomed 4.02% in the current financial year so far, climbing from ₹2,560 apiece to the current trading price of ₹2,663 apiece. At current levels, the stock is trading 6.85% away from its all-time high of ₹2859, marked in September 2021.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
