While creating a long-term portfolio, it is very important to select financially strong companies that can bear ups and down and stand tall amidst all odd. While financial year 2023 was a tough year on account of high inflation, geopolitical tensions, rising interest rates, etc. some companies remained intact and went on to deliver their record performance in terms of revenues.
Here are three Nifty-50 companies, that closed FY-23 with their highest respective revenue.
Reliance Industries Limited
Reliance is a household name and no long-term portfolio of large caps can be completed without this giant stock. Reliance Industries Ltd is India’s largest company with a market capitalization of INR 1,695,959.05 crores and reported an all-time high revenue of INR 8,91,294 crores, which was a noticeable 24.1% YoY jump. This kind of growth is generally not seen in a mega-cap company. If you think that’s a one-time gain, the 5-year CAGR of revenue is also 20.4%. Reliance has been a massive wealth creator for its investors.
The company also clocked a profit of INR 66,702 crores, which has been growing at a 5-year CAGR of 15.2%. On the technical front, the stock has a very strong support of around INR 2,200 around which once can add and accumulate for the long term.
Key Historical data of Reliance ;
Tata Consultancy Services Limited
IT Giant, Tata Consultancy Services Ltd (TCS) is a market leader in the IT services and solutions market, with a market capitalization of INR 12,05,108 crores. The company’s revenue has been growing at a 5-year CAGR of 9.8% to a record high in FY-23, at INR 2,28,907 crores, over which, it was able to secure a profit of INR 42,147 crores. While the stock has traded flat for the last one year, it is a no-brainer if someone wants to bet on Indian IT growth.
The stock looks bit expensive at the current PE of 28.90, compared to the Industry PE of 26.07 but investors always tend to give premium valuations to sector leaders.
- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE43.3%
- Company has been maintaining a healthy dividend payout of 61.4%
Tata Motors Limited
Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group, it offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world.
Tata Motors Ltd, with a market capitalization of INR 1,85,784 crores is turning out to be a great turnaround story. After suffering from losses for the last 4 years, FY-23 was the first profitable year for the company, with a net income of INR 2,077.91 crores over a record-high revenue of INR 3,52,431.09 crores.
The demand for the JLR segment is also improving on the back of better supplies. Its India net debt has fallen to a 15-year low of INR 6,200 crores.
Stock PE is 71.34 Vs Industry PE of 60.95
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