Top 5 Large Cap Stocks of 2019

Build The Best Stock Portfolio with Top 5 Large Cap Stocks of 2019

Introduction

Here’s a complete list and analysis of Top 5 Large Cap Stocks of 2019 in Indian Share Market. Have you invested in these companies? Does it still make sense to invest in these stocks for 2020?

Top 5 Large Cap Stocks of 2019

Here is the list of top 5 large cap stocks of 2019 with highest YTD returns. The analysis of these stocks which have given a great YTD performance is also discussed.

1. HDFC Asset Management Company Ltd

• Government’s major booster – Corporate Tax Rate Cut Announcement (20^th Sept)
  • New Tax Rate is Changed to 25% from earlier 35%
• Inclusion in MSCI India Index (8^th Nov) : MSCI India index has announced the inclusion of HDFC AMC in MSCI India Index.
• Repayment of Rs.167 Cr from Essel Group (26^th Nov)
  • Exposure to Essel Group bonds = Rs.276 Cr
  • Value of residual pledged equity shares = Rs.144 Cr
• Morgan Stanley has given Overweight stance on HDFC AMC (27^th Nov)

2. SBI Life Insurance Company Ltd

• Offer for Sale of SBI Life Insurance by its Promoter, SBI
  • SBI offloaded 4.5% stake (14^th Sept)
  • Raised Rs.3,500 Cr through offer for sale
• Jefferies maintain BUY rating for SBI Life; Revised target price upwards (17^th Oct)
• Inclusion in MSCI India Index (8^th Nov)
• Government may raise FDI limit in Insurance firms to 74% up from current limit 49% (10^th Dec)

3. ICICI Lombard General Insurance Co. Ltd

• Rise in FPI stakes to 18.4% in June-19 quarter (7^th Aug)
  • FPI sees long-term growth in insurance industry
  • Increased by more than double in 1 year
  • FPI stake : 7.2% in June-18
• Increase in % stake by Mutual Fund Houses in September quarter (15^th Oct)
• New Motor Vehicle Act could add Rs.2,600 Cr to ICICI Lombard provided there is 100% compliance
• Net Profit Growth YoY :
  • Q4 FY19 7.5%
  • Q1 FY20 7.3%
  • Q2 FY20 5%
• Government may raise FDI limit in Insurance firms to 74% up from current limit 49% (10^th Dec)

4. HDFC Life Insurance Co. Ltd

• MSCI added HDFC Life Insurance in its Global Standard Index in August
• 14.5% stake sale since Jan-19 by Co-Promoter, UK’s Standard Life
  • Increase in free-float market capitalization
• Quarterly Net Profit Growth YoY :
  • Q4 FY19 : 5%
  • Q1 FY20 : 11.7%
  • Q2 FY20 : 7%
• Increase in stake by Mutual fund houses & Overseas portfolio investors (FPI)
• Government may raise FDI limit in Insurance firms to 74% up from current limit 49% (10^th Dec)

5. Bajaj Finance Ltd

• Corporate Tax Rate Cut Announcement (20^th Sept)
  • Tax Rate Changes : 35% to 25%
• Increase in stake by Mutual fund houses & Overseas portfolio investors (FPI)
• Bajaj Finance launches QIP of Rs.8,500 Cr (4^th Nov)
• QIP Participation in RBL Bank’s QIP
• Invocation of pledged shares of Karvy Data Management

Conclusion

These top 5 large cap companies have delivered very good performance year to date. This analysis can help you build the best stock portfolio over the longer horizon.