Best Large Cap Stocks to Invest in India 2023 | Upstox (2024)

Summary:

Large-cap stocks are well-established companies known for their market stability and consistent performance. In this article, we present the top 10 best-performing Indian large-cap stocks, selected after careful consideration based on key financial factors.

Large-cap stocks in India are shares from companies that hold a dominant position in the market and are well-known to many customers. They are often called blue chip stocks or big caps. These stocks have a market capitalisation of more than INR 20,000 crore. They are popular among investors because large-cap stocks offer stable and regular returns. In this article, we've handpicked the top 10 large-cap stocks for 2023 in India based on their financial performance. But before we dive in, let’s quickly discuss what you need to remember before investing in blue chips.

Factors to consider when choosing large-cap stocks

Large-cap stocks can be a good investment for long-term investors who are looking for stability and dividends. We will use a combination of the following financial factors to rank the large-cap stocks of 2023.

• Market capitalisation: Market capitalisation is the total value of all the outstanding shares of a company. A higher market capitalisation typically indicates a larger and more established company.

• Return on equity (ROE): ROE is a ratio that shows how much profit a company makes from its shareholder equity. The higher the ROE, the more efficient the company is at using its net assets to generate income.

• Price-to-earnings (P/E) ratio: The P/E ratio is a measure that relates a company’s stock price to its earnings per share. It’s a widely used indicator to assess how fairly a stock is priced. A lower P/E could imply that the stock is undervalued, while a higher one could signal that the stock is overvalued.

• Dividend yield: It is the amount of money a company pays out annually to its shareholders as a dividend. A higher dividend yield can be an attractive investment for shareholders who are looking for income.

• Debt-to-equity ratio: This is a ratio that compares the company’s total debt to its total equity. It shows how much the company relies on debt to finance its operations. The lower the ratio, the less debt the company has relative to its equity.

There are numerous factors that affect the stock market, and they can change over time. However, the stocks listed below are among India's top large-cap stocks as of today and have been evaluated on the above parameters. Here are our top picks:

• Reliance Industries (RIL)

Reliance Industries was founded in 1966 and stands out as a major force in India's business world. Under Mukesh Ambani's leadership, the conglomerate has expanded across sectors from petrochemicals to telecommunications to e-commerce, especially with its Jio brand. Its adaptability and strong market presence, along with a decent ROE, put it at the top of Indian businesses.

• Tata Consultancy Services (TCS)

Tata Consultancy Services is a global name in the IT services sector. As a subsidiary of the renowned Tata Group, TCS operates in over 46 countries, reflecting its global footprint. TCS remains a top choice for investors worldwide because of the trust and reliability associated with its brand, consistent performance, and commitment to innovation and excellence in the tech industry.

• HDFC Bank

HDFC Bank was established in 1994 and is one of India's leading private-sector banks. It offers a wide range of financial products and services. It is known for its customer-centric approach and digital banking solutions and has earned the trust of millions of customers over the years.

• Infosys

Infosys is a global leader in next-generation digital services and consulting. One of India’s largest employers in the private sector, the company became only the fourth Indian company to achieve a market cap of USD 100 billion in 2021. Today, Infosys stands at a market cap of around INR 5,75,349 crore.

• Hindustan Unilever (HUL)

Hindustan Unilever is a subsidiary of British multinational Unilever and has been a key player in India's consumer goods sector since 1933. With a diverse product range and a turnover of INR 58,154 crore in 2022-23, it's among India's trusted companies.

• ICICI Bank

ICICI Bank stands as a top-tier private sector bank in India and delivers an extensive array of financial services to both individuals and companies. With over 5,000 branches and 15,000 ATMs nationwide, the bank places a strong emphasis on customer convenience, innovation, and security in its offerings.

• State Bank of India (SBI)

State Bank of India (SBI) is the country's oldest public sector bank. SBI boasts a rich legacy that dates back to the 19th century. As a financial institution with a global footprint, SBI is known for its comprehensive range of financial products and its commitment to serving millions of customers with trust and reliability.

• Bharti Airtel

Bharti Airtel is a top telecommunications provider in India and has a strong presence globally. The company offers a diverse range of services, from mobile and broadband to digital TV, payments bank, and business solutions. It caters to over 490 million customers across 18 countries.

• ITC

ITC is based in Kolkata and has a diverse range of operations that cover sectors such as FMCG, hotels, software, packaging, paperboards, speciality papers, and agribusiness. It was founded in 1910 as a tobacco company, but over the years, it has broadened its portfolio to include more than 50 brands in different segments. The company exports its products to 90 countries worldwide.

• Wipro

Wipro is one of India’s leading ‘Big Tech’ companies that was responsible for the IT revolution beginning in the 1990s and continuing well into the present day. Wipro actually began as a vegetable oil producer in 1945 and, over the years, expanded its services to include IT, consulting, software, and engineering. Today, Wipro operates in 18 countries and serves more than 1,000 enterprise clients across the globe.

• Large-cap stocks can be a good investment for investors who are looking for steady returns over time.
• Large-cap stocks are typically more expensive because they have a higher market capitalisation, which means that their shares are worth more.
• However, there is no guarantee when it comes to stocks, including the above-listed ones. Investors should perform their own deep analysis before making any investment decisions.

Disclaimer

The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.