Best Large Cap Stocks to Buy in NSE India (2024)

Last Updated on Oct 24, 2024 by Aishika Banerjee

Large-cap stocks are often considered to be the backbone of the stock market. These stocks typically represent well-established companies with a market capitalisation of over $10 bn, and they tend to offer investors a sense of stability and reliability. In this article, let’s explore some of the best large-cap stocks based on various metrics like net profit margin, net income, 5-yr CAGR and 1-yr returns. 

Top Large Cap Stocks in India 

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio (%)	Net Income (Rs. in cr.)	Debt to Equity (%)	5Y Avg Net Profit Margin (%)
Bajaj Holdings and Investment Ltd	Asset Management	113,706.91	10,216.85	15.65	7,267.21	0.00	91.95
Power Grid Corporation of India Ltd	Power Transmission & Distribution	294,736.14	316.90	18.93	15,573.16	1.42	31.67
Adani Ports and Special Economic Zone Ltd	Ports	289,555.82	1,340.45	35.70	8,110.64	0.90	27.83
Info Edge (India) Ltd	Online Services	101,251.23	7,830.70	176.03	575.20	0.01	27.16
ITC Ltd	FMCG – Tobacco	600,903.07	480.35	29.37	20,458.78	0.00	26.64
Indian Railway Finance Corp Ltd	Specialized Finance	182,201.11	139.42	28.42	6,412.11	8.38	26.36
Divi’s Laboratories Ltd	Labs & Life Sciences Services	152,049.78	5,727.60	95.03	1,600.00	0.00	25.51
REC Limited	Specialized Finance	133,162.14	505.70	9.41	14,145.46	6.42	24.72
Bajaj Finance Ltd	Consumer Finance	432,805.53	6,995.80	29.95	14,451.17	3.82	22.56
DLF Ltd	Real Estate	199,349.23	805.35	73.10	2,727.10	0.12	21.57

Note: The data on this list of the top large cap companies was taken on 23rd October 2024. Apply the following filters on Tickertape Stock Screener to get this list:

• Market Cap: Large Cap
• Net Income: Positive (Set lower limit to 0)
• Debt-to-Equity ratio: Low
• 5Y Avg Net Profit Margin: Sorted from highest to lowest.

🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.

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Did you know that you can invest in readymade stock portfolios managed by SEBI-registered experts?

But first, what is a smallcase?

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

With over 500 smallcases to choose from, here are some of the most popular smallcases you can check out if you are interested in large-cap stocks:

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

Large Cap Momentum (AUM) smallcase by Flameback Capital

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

• Disclosures for the Equity & Gold and Top 100 stocks smallcases
• Disclosures for the Large Cap Momentum (AUM) smallcase

Details on the Top Large-Cap Stocks on this Large Cap Stocks List NSE

Bajaj Holdings and Investment Ltd

Bajaj Holdings & Investment Limited (BHIL) emerged from the 2007 demerger of Bajaj Auto Limited, which split into three entities: BHIL, Bajaj Auto Limited, and Bajaj Finserv Limited. BHIL, a systemically important non-deposit-taking Non-Banking Financial Company (NBFC), operates under the ‘Investment and Credit Company’ category and is registered with the Reserve Bank of India.

As of 23rd October 2024, Bajaj Holdings and Investment had a market capitalisation of Rs. 113,706.91 cr., and its share price closed at Rs. 10,216.85. The company had a PE ratio of  15.65 and a net income of Rs. 7,267.21 cr. Furthermore, it also had a low debt-to-equity ratio of 0.00, and a 5-yr average net profit margin of 91.95.

Power Grid Corporation of India Ltd

Power Grid Corporation of India Limited (PGCIL), a public sector company, was established on 23rd October 1989 to develop extra-high voltage alternating current and high-voltage direct current (HVDC) transmission lines. The company went public in 2007, listing on both the BSE and NSE. 

As of 23rd October 2024, the Power Grid Corporation of India had a market capitalisation of Rs. 294,736.14 cr., and its share price closed at Rs. 316.90. The company had a PE ratio of 18.93 and a net income of Rs. 15,573.16 cr. Furthermore, it also had a low debt-to-equity ratio of 1.42, and a 5-yr average net profit margin of 31.67.

Adani Ports and Special Economic Zone Ltd

Adani Ports and Special Economic Zone Limited (APSEZ), India’s leading private port and SEZ enterprise, began as Gujarat Adani Port Ltd (GAPL) on 26th May 1998 to develop a private port at Mundra on India’s west coast. The company focuses on developing, operating, and maintaining port infrastructure, including port services and related projects. 

As of 23rd October 2024, the Adani Ports and Special Economic Zone had a market capitalisation of Rs. 289,555.82 cr., and its share price closed at Rs. 1,340.45. The company had a PE ratio of 35.70 and a net income of Rs. 8,110.64 cr. Furthermore, it also had a low debt-to-equity ratio of 0.90, and a 5-yr average net profit margin of 27.83.

Info Edge (India) Ltd

Info Edge (India) Ltd, India’s leading online classifieds company, began its journey on 1st May 1995 as Info Edge (India) Private Limited. It launched its first business, the online recruitment platform naukri.com, and has since diversified into multiple sectors, including 99acres.com (online real estate), jeevansathi.com (online matrimonial), and shiksha.com (online education services).

As of 23rd October 2024, the Info Edge (India) Ltd had a market capitalisation of Rs. 101,251.23 cr., and its share price closed at Rs. 7,830.70. The company had a high PE ratio of 176.03 and a net income of Rs. 575.20 cr. Furthermore, it also had a low debt-to-equity ratio of 0.01 and a 5-yr average net profit margin of 27.16.

ITC Ltd

ITI Limited leads the telecom solutions industry, providing switching, transmission, and access equipment. Established on 25th January 1950, it became India’s first Public Sector Unit. In 2003-04, it introduced new products to the BSNL network, including a managed leased line network, digital loop carrier SDH, and CDMA-based wireless terminals.

As of 23rd October 2024, ITC Ltd had a market capitalisation of Rs. 600,903.07 cr., and its share price closed at Rs. 480.35. The company had a PE ratio of 29.37 and a net income of Rs. 20,458.78 cr. Furthermore, it also had a low debt-to-equity ratio of 0.00 and a 5-yr average net profit margin of 26.64.

Indian Railway Finance Corp Ltd

Indian Railway Catering and Tourism Corporation Limited (IRCTC), established in 1999, is a Miniratna (Category-I) Central Public Sector Enterprise. Created as a public limited company, it extended Indian Railways’ operations to enhance, manage, and professionalise catering and hospitality services across stations, trains, and other locations. 

As of 23rd October 2024, Indian Railway Finance Corp Ltd had a market capitalisation of Rs. 182,201.11 cr., and its share price closed at Rs. 139.42. The company had a PE ratio of 28.42 and a net income of Rs. 6,412.11 cr. Furthermore, it also had a debt-to-equity ratio of 8.38 and a 5-yr average net profit margin of 26.36.

Divi’s Laboratories Ltd

Divi’s Research Centre, established in 1990, focused on research and development. By 1995, the company had built its first manufacturing facility near Hyderabad and successfully developed several commercial processes for intermediates and bulk actives between 1991-93. In 1994, the company rebranded as Divis Laboratories Ltd to reflect its expanding operations.

As of 23rd October 2024, Divi’s Laboratories Ltd had a market capitalisation of Rs. 152,049.78 cr., and its share price closed at Rs. 5,727.60. The company had a PE ratio of 95.03 and a net income of Rs. 1,600.00 cr. Furthermore, it also had a debt-to-equity ratio of 0.00 and a 5-yr average net profit margin of 25.51.

REC Limited

REC Ltd finances projects across the entire power sector value chain, from generation to distribution. A ‘Maharatna’ company under the control of the Ministry of Power, Government of India, REC is also registered with the RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC).

As of 23rd October 2024, REC Limited had a market capitalisation of Rs. 133,162.14 cr., and its share price closed at Rs. 505.70. The company had a PE ratio of 9.41 and a net income of Rs. 14,145.46 cr. Furthermore, it also had a debt-to-equity ratio of 6.42 and a 5-yr average net profit margin of 24.72.

Bajaj Finance Ltd

Bajaj Finance Limited (BFL), the lending arm of Bajaj Finserv, began operations on 25th March 1987 as Bajaj Auto Finance Limited. Initially providing loans for two and three-wheelers, the company gradually expanded its lending services to include durables, business, and property loans. 

As of 23rd October 2024, Bajaj Finance Ltd had a market capitalisation of Rs. 432,805.53 cr., and its share price closed at Rs. 6,995.80. The company had a PE ratio of 29.95 and a net income of Rs. 14,451.17 cr. Furthermore, it also had a debt-to-equity ratio of 3.82 and a 5-yr average net profit margin of 22.56.

DLF Ltd

DLF Ltd., founded by Chaudhary Raghuvendra Singh, was incorporated on 4th July 1963. In its early years, the company developed residential colonies in Delhi, such as Krishna Nagar, completed in 1949. Following the Delhi Development Act of 1957, which placed real estate development under state control, DLF shifted its focus to acquiring land outside the Delhi Development Authority’s jurisdiction, particularly in Gurgaon, Haryana.

As of 23rd October 2024, DLF Ltd had a market capitalisation of Rs. 199,349.23 cr., and its share price closed at Rs. 805.35. The company had a PE ratio of 73.10 and a net income of Rs. 2,727.10 cr. Furthermore, it also had a debt-to-equity ratio of 0.12 and a 5-yr average net profit margin of 21.57.

What are Large-Cap Stocks?

Large-cap stocks are shares of companies with a market capitalisation of over Rs. 20,000 cr. These are the largest and most established companies in India, often referred to as “blue-chip stocks” due to their financial stability and strong performance. Found in major indices like Nifty50 and BSE Sensex, large-cap stocks are known for their ability to withstand market volatility, making them a safer investment option.

Though they may offer slower growth than smaller companies, large-cap stocks can be favoured by investors seeking steady, reliable returns and long-term stability.

Features of Large Cap Companies in India

Here are a few features of large cap companies.

• Established market position: These large cap companies have an established market position and a strong brand presence, which helps to maintain their competitive advantage.
• Revenue: Indian large cap companies usually have a consistent track record of generating high revenue year after year.
• Diversification: Large-cap companies have a diverse portfolio of products and services, which helps to spread their risk and protect their earnings.
• Financial stability: These companies typically have a strong balance sheet and cash flows and are less vulnerable to economic downturns. 
• Experienced management: Large-cap companies are typically led by experienced and skilled management teams with a proven track record of success.
• Global presence: Many large-cap companies have a global presence, with operations in multiple countries.
• Stable dividend: These companies often pay a stable dividend to their shareholders, making them attractive to income investors.
• Lower risk: Compared to small or mid-cap companies, large-cap companies are often considered less risky by investors.
• Institutional ownership: Large-cap companies typically have a high level of institutional ownership, which helps to provide stability and liquidity to their stock price.

The Securities and Exchange Board of India (SEBI) has identified 100 large-cap companies which are listed on various stock exchanges from 1 to 100. Now, let’s look at various lists of the top 10 large-cap stocks in India.

Who Should Invest in Large-Cap Stocks?

Large-cap stocks in India are ideal for a diverse range of investors, particularly those who prioritise stability, income, and long-term growth. Here’s a closer look at who can benefit from adding these stocks to their portfolio:

Conservative Investors

If your primary concern is minimising risk, large-cap stocks on a large cap share list can provide the stability you seek. These well-established companies have strong market positions, offering consistent performance even during volatile market conditions.

Dividend Income Seekers

Large-cap stocks, including the top 20 large cap stocks in India, often belong to companies with a history of paying regular dividends. Investors who rely on steady income streams, such as retirees, may find these stocks appealing for their reliable payouts, making them a key part of an income-focused investment strategy.

Long-Term Investors

Good large cap stocks, including the top 50 large cap stocks in India, offer gradual yet steady capital appreciation for investors with a long-term horizon. These companies may not experience explosive short-term growth but tend to deliver solid returns over several years or even decades, making them suitable for building wealth over time.

Institutional and Wealthy Investors

Institutional investors, such as pension funds and mutual funds, prefer large-cap stocks for their liquidity and reliability. Similarly, experienced investors and high-net-worth individuals often include these stocks to balance risk and return, particularly when aiming for long-term stability.

Beginners and Low-Risk Investors

While large-cap stocks may be more expensive than smaller companies, they are often less volatile, making them a safer choice for beginner investors. For those new to the market, these stocks provide a foundation of stability while helping to diversify across various sectors.

Before making investment decisions, it’s always prudent to align your strategy with your risk tolerance and financial goals. Investors can also consult a financial advisor if they seem fit. 

How to Identify the Best Large-Cap Stocks to Invest in?

Here are a few things you can keep in mind when choosing the best large-cap stocks in India:

• Strong Financials: Companies with consistent profits, growing revenues, and stable earnings tend to be more reliable investments. Financial metrics like Earnings Per Share (EPS) and Return on Equity (ROE) are often used to assess a company’s performance.
• Market Leadership: Large-cap stocks or big cap stocks are typically industry leaders. These companies have a strong market presence, which helps them maintain stability even during market downturns, making them attractive to long-term investors.
• Dividend Payments: Many large-cap companies have a history of paying regular dividends. This reflects financial health and offers investors the potential for both steady income and capital appreciation.
• Valuation: Even large, well-performing companies can be overpriced. A stock’s valuation, measured by indicators like the Price-to-Earnings (P/E) ratio, helps investors determine whether the stock is priced fairly in the market.
• Management and Governance: The quality of a company’s management is a key indicator of its future performance. Companies with strong leadership and sound governance practices tend to make better strategic decisions, benefiting shareholders in the long run.

Benefits of Investing in Large-Cap Stocks in India

Investing in large-cap stocks offers numerous advantages, particularly for those looking for stability and long-term value. Here are some key benefits:

Stability and Reliability

Large-cap companies in India are typically well-established, with proven track records of performance. Their size and financial strength make them more resilient during market fluctuations, providing greater stability compared to smaller firms.

Lower Volatility

Due to their market position and diversified revenue streams, large-cap stocks tend to be less volatile. They experience smaller price swings, making them a safer option for conservative investors who prefer consistent performance.

Regular Dividend Payouts

Many large-cap companies distribute regular dividends to shareholders, offering an additional income stream. This makes large-cap stocks attractive to investors seeking steady, passive income along with capital appreciation.

Long-Term Growth Potential

While large-cap stocks may not grow as rapidly as smaller companies, they have the resources and industry leadership to sustain steady growth over time. This long-term growth potential, combined with stability, makes them an appealing option for wealth preservation and gradual accumulation.

Strong Liquidity

Some large-cap stocks can be highly liquid, making them easy to buy and sell due to high trading volumes. This liquidity ensures investors can enter or exit positions quickly without significantly affecting stock prices.

Blue-Chip Reputation

Large-cap stocks are often called “blue-chip” stocks, signifying their industry leadership and a reputation for reliability and strong corporate governance. This status adds a layer of investor confidence.

Risks of Investing in Large-Cap Stocks in India

Investing in large-cap stocks in India comes with its share of risks, despite the relative stability of these companies. It is essential to consider these factors before making investment decisions:

• Limited Growth Potential: Top large cap stocks in India represent well-established companies already capturing significant market share. As a result, their growth potential is often lower compared to mid or small-cap companies in earlier stages of expansion.
• Market Sensitivity: Large-cap stocks tend to be more sensitive to broader market movements and trends. Since they are often included in key stock indices like the Nifty 50, their performance can be closely tied to macroeconomic shifts, global events, and market sentiment, making them more vulnerable during market downturns.
• Potential for Limited Diversification: Focusing heavily on fundamentally strong large cap stocks from the top large cap stocks list in India may limit portfolio diversification. While they are generally safer, relying too much on a few large-cap companies in India can expose your portfolio to sector or market risks, especially if those companies belong to the same industry.
• Global Exposure Risks: Many large-cap companies in India on the list of large cap companies, have significant global operations. This exposes them to foreign exchange fluctuations, geopolitical tensions, and international market instability, which can affect their performance and, consequently, stock prices.

Alternate Investments Options to Large-Cap Stocks

Investors exploring options beyond large-cap stocks in India can consider a range of alternatives, each offering varying levels of growth potential and risk:

Mid-Cap Stocks

Companies in the mid-cap range (market capitalisation between Rs. 5,000 cr. and Rs. 20,000 cr.) offer a balance of growth and stability. These businesses are often in their expansion phase, providing higher growth potential than large-cap stocks but with more risk.

Small-Cap Stocks

With a large cap market capitalization in India typically below ₹5,000 crore, small-cap stocks are attractive to investors seeking high growth. While these stocks offer substantial upside, they come with elevated risk due to greater volatility and vulnerability to market fluctuations.

Growth Stocks

Growth stocks reinvest their earnings for expansion, focusing on capital appreciation. These stocks are ideal for investors looking for long-term value increases, though they often come at the cost of current dividends or income.

Value Stocks

Value stocks are those perceived to be undervalued by the market, often indicated by lower price-to-earnings (P/E) ratios. Investors who seek value stocks focus on the potential for price correction and market recognition of the company’s intrinsic worth.

Exchange-Traded Funds (ETFs)

ETFs offer diversification across sectors or asset classes and are traded like individual stocks. They allow investors to track indices or themes, providing lower costs and less management complexity compared to direct stock investments.

Multibagger Stocks

Multibagger stocks have the potential to deliver significant returns over a long period. They attract investors due to their strong growth fundamentals but carry heightened risk, requiring thorough research before investment.

Equity Mutual Funds

Equity funds pool capital from multiple investors to create a diversified stock portfolio. Managed by professionals, these funds offer exposure to equity markets with less direct management, suiting those seeking broad-based stock exposure without picking individual stocks.

These alternatives to large-cap stocks allow investors to customise their portfolios based on their financial goals, risk tolerance, and investment horizon.

Factors to Consider Before Investing in the Best Large-Cap Stocks

Here are a few factors to consider before investing in large-cap stocks.

• Stability: A company’s stability is a crucial factor to consider before investing. Large-cap stocks tend to face little fluctuations in their price. Additionally, stable companies tend to pay dividends.
• Transparency: Large-cap companies, including the top 10 large cap stocks, usually have transparent earnings reports and corporate structures. This transparency makes it easy for investors to know everything about the company and difficult for the company to get involved in a scam or price manipulation.
• Management: Large-cap companies have the capacity to maintain high levels of efficiency over time. Hence, when it comes to choosing large-cap companies for your investment portfolio, consider management and quality to be among the most important factors.

To Conclude

In a nutshell, large-cap stocks can be a great addition to any investment portfolio, but it’s important to consider various factors that can affect their performance. You can use over 200 filters available on Tickertape Stock Screener to get the list of the best large-cap stocks in India based on your preferences. This powerful tool can help you filter stocks based on various parameters and provides comprehensive data on each stock, allowing you to make informed investment decisions. So why not give it a try today and take your investment portfolio to the next level?

Frequently Asked Questions About Large-Cap Stocks