Did you know that as of January 24, 2024, there are over 5,000 companies listed on the Bombay Stock Exchange? However, out of these, only 100 companies have a market capitalisation that is greater than 20,000 crores. You might be wondering why I’m talking about 20,000 crores, what market capitalisation is, and why this number is so low. Don’t worry, I’m here to help you understand. Today, we will discuss large-cap companies in India and closely examine each concept together. So, stay tuned and let’s get started!
The Indian Stock Market Scenario
In India, the primary stock exchanges are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). As of January 24, 2024, data from the Bombay Stock Exchange (BSE) shows that there are a total of 5,309 listed companies on the BSE. Meanwhile, as of December 31, 2023, the National Stock Exchange (NSE) has 2,266 listed companies. Some companies opt for listing on only one exchange, while others choose to list on both for increased visibility. As a result, the number of companies listed on both exchanges may fluctuate.
What are Large-Cap Companies in India?
To have a fruitful discussion about large-cap companies in India, it’s crucial to comprehend the determining factor that places a company in the category of large cap, mid-cap, or small-cap. This vital metric is none other than market capitalisation.
What is Market Capitalisation?
Market capitalisation, often referred to as “market cap,” is a measure of a company’s value in the stock market. It represents the total market value of a company’s outstanding shares. Market analysts use market capitalisation to assess the size and worth of a company.
To calculate market capitalisation, you multiply the current stock price by the total number of outstanding shares available for public trading. For example, if a company has 10 lakhs shares outstanding and the stock price is Rs 50 per share, the market capitalisation would be 5 Crores. Here’s the calculation:
Market capitalization = Total number of outstanding shares * Current stock price
= 10 lakhs shares * Rs 50 per share
= Rs 5,00,00,000 (5 Crores)
Market capitalisation helps market enthusiasts categorise companies into different groups, such as large-cap, mid-cap, and small-cap. Understanding market capitalisation is important for investors because it provides insights into a company’s scale and influence in the market.
Also explore the Top 20 Highest Share Prices In India: Exploring The Market Titans
Why 20,000 Crores Matters?
1. Large-Cap Companies:
Large-cap companies are typically the largest and most established companies in the market. They have a large market capitalisation of over ₹20,000 crores. Large-cap companies are usually leaders in their respective industries, with a strong track record of performance and stability.
Examples of large-cap companies in India include well-known names like Reliance Industries, HDFC Bank, and Infosys.
2. Mid-Cap Companies:
Mid-cap companies fall between large-cap and small-cap companies in terms of size and market capitalisation. They are generally considered to have a market capitalisation above ₹5,000 crore but less than ₹20,000 crore. Mid-cap companies often have the potential for growth and expansion, but they may also exhibit higher volatility compared to large-cap companies.
Examples of mid-cap companies in India include companies like Tanla Platforms Ltd, Indian Energy Exchange Ltd, and Rites Ltd. Explore the Fundamentally Strong Midcap Stocks: Untapped Opportunities
3. Small-Cap Companies:
Small-cap companies are typically smaller in size and market capitalization compared to large-cap and mid-cap companies. They have market capitalisations less than ₹5,000 crores. Small-cap companies are usually newer or less established firms, with the potential for rapid growth but also higher risk.
Examples of small-cap companies in India include relatively newer or niche companies across various sectors, such as Ksolves India Ltd, Dish TV India Ltd, and Praveg Ltd. Learn more about Small Cap Index: Opportunities And Risks For Investors
Top 20 Large Cap companies in India
Let’s move on to the real topic of our today’s discussion. In this section, we are going to talk about the market giants of the Indian stock market. From established conglomerates like Reliance Industries to tech innovators like Infosys, these companies shape the trajectory of the Indian stock market and serve as beacons of stability for investors. These leaders who have dominated the market space for years and are continue to grow in their respective segments. So these are the top 20 Large cap companies in India.
Top 20 Large Cap companies in India
| Companies | Market Cap (In Rs. Crores) | Current Market Price (In Rs.) | ROE | Stock P/E | 3-years Return |
| Reliance Industries Ltd | ₹ 20,02,509 Cr. | ₹ 2,960 | 9.23 % | 28.8 | 17% |
| Tata Consultancy Services Ltd | ₹ 13,97,269 Cr. | ₹ 3,862 | 51.5 % | 30.0 | 8% |
| HDFC Bank Ltd | ₹ 11,64,492 Cr. | ₹ 1,533 | 22.1 % | 18.2 | 3% |
| ICICI Bank Ltd | ₹ 8,11,750 Cr. | ₹ 1,156 | 20.6% | 18.3 | 25% |
| Bharti Airtel Ltd | ₹ 7,88,020 Cr. | ₹ 1,325 | 12.0% | 69.2 | 36% |
| State Bank of India | ₹ 7,36,057 Cr. | ₹ 825 | 16.8% | 10.7 | 33% |
| Infosys Ltd | ₹ 5,94,342 Cr. | ₹ 1,432 | 31.8 % | 22.8 | 2% |
| ITC Ltd | ₹ 5,47,143 Cr. | ₹ 438 | 29.1% | 26.7 | 29% |
| Hindustan Unilever Ltd | ₹ 5,25,850 Cr. | ₹ 2,238 | 20.2 % | 51.2 | -2% |
| Housing Development Finance Corporation Ltd (Merged) | ₹ 5,04,384 Cr. | ₹ 2,724 | 13.7% | 19.3 | 4% |
| Larsen & Toubro Ltd | ₹ 4,99,981 Cr. | ₹ 3,637 | 11.7% | 39.6 | 39% |
| Bajaj Finance Ltd | ₹ 4,28,899 Cr. | ₹ 6,929 | 22.0% | 29.7 | 8% |
| Maruti Suzuki India Ltd | ₹ 4,04,322 Cr. | ₹ 12,860 | 18.3% | 29.9 | 25% |
| HCL Technologies Ltd | ₹ 3,73,129 Cr. | ₹ 1,375 | 23.5% | 23.8 | 16% |
| TATA Motors | ₹ 3,72,311 Cr. | ₹ 1,015 | 5.62% | 18.5 | 50% |
| Sun Pharmaceuticals Industries Ltd | ₹ 3,62,180 Cr. | ₹ 1,510 | 16.6% | 38.8 | 32% |
| Axis Bank | ₹3,58,986 Cr. | ₹1,163 | 20.3% | 13.6 | 17% |
| ONGC | ₹ 3,58,538 Cr. | ₹ 285 | 14.1% | 7.87 | 38% |
| NTPC | ₹ 3,52,959 Cr. | ₹ 364 | 12.0% | 18.2 | 52% |
| Adani Enterprises Ltd | ₹ 3,50,835 Cr. | ₹ 3,078 | 9.63% | 93.4 | 39% |
Data as of 30th April 2024. Source of Information: BSE India
Also read: Tata Power Fundamental Analysis: Illuminating Opportunities
Let’s discuss a few facts about some of these large-cap companies in India.
Reliance Industries Ltd
Reliance Industries is the biggest private company in India when you look at its money stuff. They do many different things like exploring for oil, making chemicals, running stores, offering digital services, and dealing with money matters. The company started in 1966 thanks to Shri Dhirubhai H. Ambani, who began with a small textile business. They officially became a company on May 8, 1973, known as Reliance Industries Limited (RIL). Later, in 1985, they changed their name. Since then, Reliance Industries has grown a lot. They started with textiles but now they’re big in making chemicals from oil, among other things.
As of today, Reliance Industries holds the title of the biggest company in India, boasting a market capitalization of ₹20,02,509 Cr. Over the past year, its annual revenue increased by 3.1% to reach ₹917,121 Cr, while the annual net profit saw a growth of 4.38% to touch ₹69,621 Cr.
Tata Consultancy Services Ltd
Tata Consultancy Services Ltd is a top-notch global company that offers IT services, consulting, and business solutions to big businesses worldwide. It’s part of the Tata Group, which is India’s largest multinational business group. TCS has over 592,000 skilled consultants spread across 55 countries, making it one of the biggest players in the industry.
They’re not just big but also experts in different industries and offer a wide range of services. Whether consulting, digital transformation, cloud services, or engineering, they have got it covered. Plus, they cater to every top-level executive, making sure their services meet the needs of all the important decision-makers in a company.
India’s biggest Information Technology company commands a market capitalization of ₹13,97,269 Cr. Over the past year, its annual revenue surged by 7.17% to reach ₹245,315 Cr, while the annual net profit saw an increase of 8.92% to touch ₹45,908 Cr.
Also read more about Fundamental Analysis Of Tata Motors: Beyond The Dashboard
HDFC Bank Ltd
HDFC Bank Ltd was formed on August 30, 1994, by Housing Development Finance Corporation Ltd. Back in 1994, Housing Development Finance Corporation Ltd was one of the first to get a ‘thumbs-up’ from the Reserve Bank of India to start a private bank. This was part of the RBI’s plan to make banking in India more open. HDFC Bank is the biggest publicly-owned private bank. They offer all sorts of banking and financial services, from helping regular people with their money to handling big financial deals for businesses.
India’s biggest private bank commands a market capitalization of ₹11,64,492 Cr. Over the past year, its annual revenue skyrocketed by 99.35% to reach ₹407,994.77 Cr, while the annual net profit surged by 39.27% to touch ₹64,062.04 Cr.
Read more about “Fundamental Analysis Of HDFC Bank: Unlocking Insights”
ICICI Bank Ltd
ICICI Bank holds the title of India’s largest private sector bank based on its consolidated assets. It began its journey in 1994 as part of the ICICI Group under the name ICICI Banking Corporation Limited. After merging with SCICI, ICICI Bank became a wholly-owned subsidiary of ICICI. The bank changed its name from ICICI Banking Corporation Limited to ICICI Bank Limited on September 10, 1999.
India’s second-largest private bank commands a market capitalization of ₹8,11,750 Cr. Over the past year, its annual revenue climbed by 26.78% to reach ₹236,037.72 Cr, while the annual net profit surged by 40.74% to touch ₹47,904.65 Cr.
Bharti Airtel Ltd
Bharti Airtel ranks among the top 3 mobile service providers worldwide based on the number of subscribers. It’s a major telecommunications company operating in 17 countries across Asia and Africa. The company has four main business units: Mobile, Telemedia, Enterprise, and Digital TV. Additionally, it manages passive infrastructure for telecom operations through its subsidiary, Bharti Infratel Ltd. Bharti Infratel Ltd owns 42% of Indus Towers Ltd, making it the largest provider of passive infrastructure services for telecom in India.
India’s biggest telecommunications company boasts a market capitalization of ₹7,88,020 Cr. Over the past year, its annual revenue surged by 19.64% to reach ₹140,081.4 Cr, while the annual net profit skyrocketed by 96.15% to touch ₹8,345.9 Cr.
Let’s Wrap it up!
In conclusion, large-cap companies in India play a crucial role in shaping the country’s economic landscape. With market capitalizations reaching billions of dollars, these companies signify not only their size but also their stability within the market. Compared to small-cap companies, large-cap companies are generally perceived as more stable and less prone to volatility.
The top 20 companies discussed above are particularly noteworthy, as they represent the pinnacle of success and influence in the Indian market. Their performance often serves as a barometer for the overall market health and investor sentiment. For investors, analysts, and anyone interested in the Indian economy, understanding these top large-cap companies is essential. They serve as bellwethers, providing valuable insights into economic trends and offering potential investment opportunities.
Disclaimer
The blog is meant for informational purposes and serves the general analysis of the stocks. The contents provided here are based on careful research and analysis utilising the fundamental and technical indicators over a while. The post does not have any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfil their responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.
