Large cap stocks, also known as blue chips, are a popular choice among investors seeking a balance of strong returns and stability. This financial year 2023-24 (FY24), while the Nifty 50 large cap index overall has posted a solid 28.6% gain, a select group of 5 large caps have wildly outperformed – more than doubling in value over the past 12 months.
Leading the pack is automaker Tata Motors, the biggest gainer among Nifty 50 components. Tata’s share price has skyrocketed 136% year-over-year, from Rs 420 on March 31, 2023 to Rs 993 on March 28, 2024. An investment of Rs 1 lakh in Tata Motors last fiscal year would now be worth Rs 2.36 lakh.
These outsized returns is a remarkable financial turnaround – in the first three quarters of FY24 alone, Tata Motors’ profits leapt from a Rs 3,051 crore loss to a Rs 13,825 crore profit. Revenues also grew 33% to Rs 3.16 lakh crore.
Hot on Tata’s heels is another standout auto name – Bajaj Auto. Like its peer, Bajaj’s shares have more than doubled in the past year, rallying 135% from Rs 3,884 to Rs 9,145, boosted by strong growth. For the April to December 2023 period, profits expanded 33% to Rs 5,508 crore, while revenues were up 22% to Rs 32,532 crore.
In third place is infrastructure giant Adani Ports and Special Economic Zone, with a 112% return taking its share price from Rs 631.8 to Rs 1,341.7. Driving this performance were a 48% increase in net profit to Rs 6,216 crore and 32% revenue growth to Rs 19,814 crore in the first three quarters of FY24.
Coal India has also handsomely rewarded investors this year, surging over 100% from Rs 213.7 to Rs 433.8. Though less flashy growth numbers, Coal India nonetheless posted steady gains – net profit rose 4% to Rs 23,496 crore on the back of a 3.6% revenue bump to Rs 96,062 crore over the 9-month period.
Rounding out the top 5 Nifty 50 gainers is two-wheeler manufacturer Hero MotoCorp, up 101% year-over-year from Rs 2,347 to Rs 4,717 per share. Hero also posted healthy growth figures, with profits increasing 46% to Rs 2,844 crore and revenues up 10% to Rs 28,171 crore.
The takeaway? While the Nifty 50 as a whole has turned in an impressive showing, a few standouts have absolutely crushed the index. The top performers span key sectors like automobiles, infrastructure and energy, but share a common thread – strong financials and secular growth trends that have captured investors’ attention. For those who bet on these stocks early on, it has been a hugely profitable ride.
Going forward in the new fiscal year, large caps will likely continue to anchor most portfolios. And while another year of 100%+ returns is hardly a certainty, savvy stock pickers will again be on the hunt for the next potential breakout stars among the blue chips. The main thing will be identifying companies backed by robust underlying fundamentals and riding compelling secular trends in India’s booming economy.