The Indian stock market has more than 5,600 listed stocks, usually categorized based on their market capitalization into large-cap, mid-cap, and small-cap stocks.
Investors generally prefer large-cap stocks over all other market caps because of their history of consistent performance, robust financial health, market influence, reputation, and brand recognition. Additionally, large-cap stocks typically have lower volatility than mid-and small-cap stocks.
This article will examine the top 10 large-cap stocks in India in 2024. But first, let’s review the basics.
What are Large-cap Cap Stocks?
Large-cap stocks have high market capitalization, typically exceeding Rs 20,000 crores. These companies are well-established, financially stable, and dominate their respective industries. They are usually the top companies in India.
For example, Reliance is a large-cap stock that dominates the oil and gas, telecom, and retail segments. In India, large-cap stocks are represented by indices such as the Nifty 50, BSE Sensex, Nifty Next 50, Nifty 100, and BSE 100.
Let’s now look at India’s top 10 large-cap stocks in 2024. The stocks on the list have a market cap of more than Rs 50,000 crores, a return on equity of more than 15%, and a recorded CAGR revenue growth of 15% in the last three years.
Top NSE 10 Large Cap Stocks of India in 2024
- Maruti Suzuki
- Tata Motors
- Adani Port SEZ
- Vaun Beverages
- GAIL
- ABB India
- Indian Oil Corp
- Hindalco
- Bharat Forge
- Havells India
Maruti Suzuki
Maruti Suzuki is India’s largest car manufacturer and a Japanese automaker, a subsidiary of the Suzuki Motor Corporation. The company’s overall market share in 2023 was 41.7%.
| Market Capitalisation | Rs 4,08,737 |
| 3-year Compounded Sales Growth | 23% |
| 3 year Compounded Sales Growth | 26% |
| Return on Equity | 18.3% |
It was established as Maruti Udyog Limited in February 1981 as a joint venture project between Suzuki Motor Corporation and the Government of India. Presently, Suzuki Motors Corporation is a majority shareholder in the company and owns equity of 58.19%
Tata Motors
Tata Motors is a leading Indian multinational company offering integrated, innovative, and e-mobility solutions. It provides a wide range of vehicles in the personal and commercial segments. It also owns the iconic brands Jaguar and Land Rover, contributing heavily to the company’s revenue and profitability.
| Market Capitalisation | Rs 3,52,185 |
| 3 year Stock Price CAGR | 21% |
| 3-year Stock Price CAGR | 44% |
| Return on Equity | 49.4% |
The company has witnessed a financial turnaround in the last five years, helped by a revamped product portfolio and its share price rising from Rs 172 in May 2019 to Rs 953 on 18 May 2024.
Adani Port SEZ
Adani Port and Special Economic Zone Limited is India’s largest commercial port operator. It operates 13 domestic ports in seven maritime Indian states and has a cargo handling capacity of 580 MMTPA. In addition to ports, it operates 11 logistics parks, experts in handling various cargo types, including liquids, autos, and grains.
| Market Capitalisation | Rs 3,05,897 |
| 3 year Stock Price CAGR | 24% |
| 3-year Stock Price CAGR | 29% |
| Return on Equity | 17.1% |
The stock of Adani Port SEZ doubled last year, helping it regain the tag of one of the most valuable companies in India. In a significant development, on June 24, 2024, the stock of Adani Ports SEZ will replace Wipro in the BSE Sensex.
Varun Beverages
Varun Beverages is an Indian multinational beverage company. It is one of the largest franchisees in the world outside the US, manufacturing carbonated and non-carbonated soft drinks sold under PepsiCo’s trademarks.
| Market Capitalisation | Rs 1,94,690 |
| 3-year Compounded Sales Growth | 88% |
| 3 year Compounded Sales Growth | 35% |
| Return on Equity | 35.2% |
The company was incorporated in 1995, is in six countries, and has 40 manufacturing facilities. Since the launch of its IPO in October 2016, Varun Beverages’ stock has consistently created wealth for its shareholders. In the last five years, the stock price has grown at a CAGR of 61%.
GAIL
Gas Authority of India Limited is a state-owned India’s largest natural gas company with diversified interests across the natural gas value chain. Its primary interest lies in the trade, transmission, and production distribution of natural gas.
The company operates through its extensive pipeline network nationwide and commands a mammoth 70% market share in gas transmission and 50% in gas trading. It is also expanding its presence in renewable energy segments such as solar, wind, and biofuel.
| Market Capitalisation | Rs 1,34,428 |
| 3 year Stock Price CAGR | 26% |
| 3-year Compounded Sales Growth | 32% |
| Return on Equity | 14% |
ABB India
ABB India is a leading global technology company specializing in motion, robotics, discrete automation, and process automation. Over several decades, the company has developed a deep manufacturing footprint in India, including world-class manufacturing locations, global feeder factories, and development and engineering centers.
ABB India’s stock has performed well in the last few years. In the previous year, the stock price increased from Rs 4,031 on 29 May 2023 to Rs 8,398 as of 27 May 2024, a growth of nearly 110%.
| 3-year Stock Price CAGR | Rs 1,78,473 |
| 3-year Compounded Sales Growth | 75% |
| 3 year Compounded Sales Growth | 22% |
| Return on Equity | 22.9% |
Indian Oil Corp
Indian Oil is a diversified integrated energy major company with business interests across the entire hydrocarbon value chain, including oil marketing, refining, pipeline transportation, exploration, and crude oil production.
| 3-year Stock Price CAGR | Rs 2,38,366 |
| 3-year Compounded Sales Growth | 32% |
| 3 year Compounded Sales Growth | 29% |
| Return on Equity | 25.8% |
It is the only Indian PSU listed in the top 100 ranking of the prestigious Fortune 500 list for 2023. In FY23, the company maintained a leadership position in the market, with a market share of 44.6% in oil marketing.
LTIMindtree
LTI Mindtree is a global technology consulting and digital solutions company that merged Larsen & Turbo Infotech and Mindtree. The company offers services and solutions across multiple industries and sectors, including Cloud and Infrastructure Services, Consulting, Data and analytics, Digital Engineering, Enterprise Applications, and more.
| Market Capitalisation | Rs 1,43,336 |
| 3-year Compounded Sales Growth | 7% |
| 3 year Compounded Sales Growth | 42% |
| Return on Equity | 25% |
While LTI Mindtree’s stock price is affected by the global slowdown in the IT sector, it has been a wealth creator, even when the company was operating as a separate entity.
Bharat Forge
Bharat Forge is an Indian multinational company that operates in multiple business verticals, including forging, automotive, construction and mining, railways, marine, aerospace, and defense. It is part of the Kalyani Group.
| Market Capitalisation | Rs 73,260 |
| 3-year Compounded Sales Growth | 32% |
| 3 year Compounded Sales Growth | 35% |
| Return on Equity | 13.2% |
The company specializes in forging operations and is emerging as a critical defense player in India. In the last year, the stock price has nearly doubled from Rs 787 on 29 May 2023 to Rs 1565 on 28 May 2024. In the last 10 years, the stock price has grown at a compounded annual growth rate of 20%.
Havells India
Havells India is a leading Fast Moving Electrical Company (FMEG) that manufactures a wide range of products, including electrical home appliances and lighting for domestic, commercial, and industrial appliances. The products are marketed through its in-house brands, such as Havells, Crabtree, Lloyd, Standard Electric, Reo, and Promptec.
| Market Capitalisation | Rs 1,18,434 |
| 3-year Compounded Sales Growth | 23% |
| 3 year Compounded Sales Growth | 21% |
| Return on Equity | 18.1% |
The stock of Havells India has been a consistent wealth compounder due to steady financial performance and earnings growth. In the last 10 years, Havells India’s stock price has grown at a CAGR of 26%.
Why Invest in Large Cap Stocks
There are several advantages of investing in India’s large-cap stock in 2024. Some of them are:
- Stability: Large-cap stocks are often more stable and less volatile investment options. Such companies display strong financial prowess and are less likely to encounter an economic or business scenario that will completely render them insolvent or out of business.
- Consistent Dividend Payouts: Large-cap stocks reward their shareholders through regular dividend payouts. These dividends can lead to higher returns when invested back into high-growth companies.
- Diversification: Large-cap stocks generally diversify their business operations across a wide range of industries to reduce the risks of different economic and political conditions. For example, Reliance Industries has diversified into Oil and gas, telecom, retail, and financial services.
- Liquidity: Large-cap stocks are highly liquid stocks, meaning they can be easily bought and sold in the stock without affecting its price compared to small market-cap stocks.
- Consistent Performers: Large-cap stocks are known for their stability and consistent performance, even in turbulent market conditions. This leads to stability in return and reliable growth over time.
Also Read: Top 10 Solar Energy Stocks in India
Conclusion
You may benefit from diversifying your portfolio with large-cap stocks, generally stable during market fluctuations. These stocks could be value additions to your portfolio, and their features make them attractive options for both new and seasoned investors. Research and consider your financial goals and risk tolerance before making investment decisions.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What are the best large-cap stocks in India?
The Nifty 50 and BSE Sensex stocks are some of India's best large-cap stocks. They have been consistent compounders and resilient during volatile market conditions.
Is it a good time to invest in large-cap stocks?
Investing in large-cap stocks can be an excellent option for first-time investors. These stocks have strong fundamentals, stability, and lower risks than mid-and small-cap stocks.
Are large-cap stocks profitable?
Large-cap companies provide investors with the opportunity for higher capital appreciation, continuous compounding, and regular dividend payouts.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.