While curating a long-term portfolio, it is essential to select financially strong companies that can wither many storms. While FY23 was a tough year on account of high inflation, geopolitical tensions, rising interest rates, etc. some companies remained unscathed and went on to deliver their best year in terms of revenues.
In that vein, here are 3 companies, that closed FY23 with their highest respective revenue (in no particular order).
Reliance Industries Limited
No long-term portfolio of large caps can be completed without this behemoth. Reliance Industries Ltd (NS:) is India’s largest company with a market capitalization of INR 16,50,770 crores and garnered 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%.
Consequently, 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 which hasn’t been breached in around 21 months, making it a good level to accumulate for the long term.
Tata Consultancy Services Limited
IT bellwether, Tata Consultancy Services Ltd. (NS:) is a market leader in the IT services and solutions market, having 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 FY23, 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 is a bit expensive at the current PE of 28.59, compared to the sector’s average of 24.33 but investors almost always tend to give premium valuations to sector leaders. Alternatively, investors can also look at Infosys (NS:) which is trading at a P/E of 22.4, partly thanks to its 1-year fall of 9.8%.
Tata Motors Limited
Tata Motors Ltd (NS:), a four-wheeler manufacturer with a market capitalization of INR 1,84,603 crores is turning out to be a good turnaround story. After suffering from losses for the last 4 years, FY23 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. Although the stock is not cheap with a P/E ratio of 88.84, it has just turned profitable and might become a good contra bet from here. The level of INR 380 is a major long-term support for the stock.
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