Let’s see how giants have done so far
Time to relook at our portfolio as many laggards of yesterday are gaining pace at present, as market cheers and has posted stellar gains in two years’ regime of Modi Government backed by large cap performance. In the past two years, global issues like slowdown in China, US, European Union; political unrest in LatAm and drought in India have affected many Indian giants. However, small and mid-caps have benefited from low commodity prices.
| Sr. No | Company Name | 1M Return % | CMP | Sector |
| 1 | Tech Mahindra Ltd. | 13.78 | 537 | IT |
| 2 | Asian Paints Ltd. | 13.07 | 1001 | Chemicals |
| 3 | Dabur India Ltd. | 10.32 | 296 | FMCG |
| 4 | Godrej Consumer Products Ltd. | 9.36 | 1499 | FMCG |
| 5 | IndusInd Bank Ltd. | 8.08 | 1111 | Bank |
We have picked up these top five large caps from BSE Large cap universe which have performed well in last one month. Tech Mahindra, Asian Paints, Dabur, Godrej Consumer Products Ltd. and IndusInd Bank have surged by 13.78 per cent, 13.07 per cent, 10.32 per cent, 9.36 per cent and 8.08 per cent respectively in last one-month period.
Tech Mahindra has backed out from payment bank launch, due to a diversified business model, and is now focusing on its core business. Fourth quarter’s robust performance has pushed the stock up. Asian paints also has reported 19.87 per cent increase in consolidated net profit at Rs 408 crore for the March quarter, which has geared up the stock to its 52 week high of 1001 per share. Dabur got triggered on the hope of good monsoon and pick up in rural demand. Dabur is expecting to achieve double digit growth in first half of FY17, as per Sunil Duggal CEO of Dabur. Godrej Consumer Products Ltd. also has posted 11 per cent gain in revenue on a yearly basis. It is also looking out for more acquisitions and is aiming to become a USD 10 billion entity by 2020. In Banking sector, plagued with NPA, IndusInd Bank has surprised investors with good returns as compared to other private sector Banks.
Out of 61 Large -caps of S&P Banking sector, 19 companies gave positive stock returns. Auto & Ancillaries and Banking sector stock returns were fairly decent as compared to other sectors, the former driven by better earning performance and the latter showing recovery from lower levels. Global and domestic stability is a growth driver of Large- caps which we hope to see coming into effect in the near future.