Top Performing Largecap Stocks of 2023 So Far

Growing up with grandparents is a luxury not everyone gets. In the process, as a kid, you have unlimited access to their unconditional love and never-ending stories.

As you grow, you understand that those stories were not just for entertainment. Years of their wisdom and experience were woven into the stories. Grandparents and their experience will help you during any difficult situation. You often find a friend, a philosopher, and a guide in them.

In short, grandparents are like large-cap stocks. Just like grandparents are the roots of a house, large-cap stocks are the roots of an investor's portfolio. Grandparents' advice helps you out in difficult times just as large-cap stocks offer stability during volatile times.

That is why investors often look up to large-cap stocks or bluechip stocks to earn decent returns with less risk.

Let's look at this year's best performing large-cap stocks and what they're up to...

#1 ITC

No prizes in guessing the first company on this list as you probably thought about ITC. Just like 2022, ITC has started 2023 on a firm note.

ITC is India's biggest cigarette & one of the largest fast-moving consumer goods (FMCG) companies. It has a 78% market share in cigarettes and a presence in other business segments such as staples, biscuits, and personal care products.

The company is also present in the paperboard, printing & packaging business.

In 2023 so far (between 1 January 2023 and 10 March 2023), the stock has already rallied around 17%.

ITC reported a 4% year-on-year (YoY) growth in revenue for the quarter ended 31 December 2022 to Rs 196,161 million (m).

Profit rose by 23% on a YoY basis to Rs 50,701 m which was 9% higher on a sequential basis. Its operating profit, calculated as earnings before interest, taxes, depreciation, and amortisation (EBITDA), increased by a sharp 25% YoY to Rs 51,835 m. Its operating margin expanded to 31.9%.

The growth in the operating profit was likely due to price hikes and a better mix, which offset the rise in input costs and other expenses. A strong rebound in travel demand bolstered the hotel business. All business segments except the agriculture business reported growth.

For the year ended 2023, the board has approved an interim dividend of Rs 6 per share.

In her budget speech for the financial year 2023-24, finance minister Nirmala Sitharaman announced to increase agriculture credit target by more than 11%. This is expected to benefit agriculture-driven stocks like ITC.

For more details, see the ITC fact sheet and quarterly results.

#2 Siemens

Siemens is a pioneer in infrastructure facilities, digitalisation, and electrification in India. It is one of the world's largest producers of energy-efficient and resource-saving technologies.

In 2023 so far (between 1 January 2023 and 10 March 2023), the stock has rallied 17%.

For the quarter ended 31 December 2022, Siemens reported a total revenue of Rs 41,168 m, which is 14% lower on a sequential (QoQ) basis. Meanwhile, profit came in at Rs 4,627 m, which is 21% higher on a QoQ basis.

The company had booked a large order worth approximately Rs 9 bn for Pune Metro Rail Line 3 corridor in Q1 during the financial year 2022 (October-December 2021).

Consequently, new orders in Q1 (October-December 2022) grew 28% on a comparable basis.

All the business segments of Siemens performed well in Q1 driven primarily by continued expansion in capex across most market verticals.

The substantial increase in the outlay for capex in infrastructure, including in the railways made in the recent Budget announcements, will continue to give a boost to the Indian economy and consequently, to Siemens' businesses.

For more details, see Siemens' fact sheet and quarterly results.

#3 GAIL (India)

A state owned enterprise, GAIL India was incorporated in 1984 and is an integrated natural gas company in India.

The company directly owns more than 11,500 km of natural gas pipelines and over 2,300 km of LPG pipelines along with six LPG gas-processing units, and a petrochemicals facility. GAIL is the first company in India to own and operate pipelines for LPG transmission in the country.

In 2023 so far (between 1 January 2023 and 10 March 2023), the stock has already rallied 16%.

For the quarter ended 31 December 2022, GAIL's revenues fell 7% sequentially.

This is the first quarter in the previous eight quarters where GAIL (India) reported losses. For financial year 2023, the company's capex target is Rs 80 bn and more than 75% of this has already been deployed. The full commissioning of the Usar polypropylene plant is expected by April 2025, while a new i-propanol plant has also been approved.

The company has floated an expression of interest (EoI) to acquire up to 26% equity in a Liquified Natural Gas (LNG) plant or project in the US.

The move represents the first attempt by an Indian public sector undertaking (PSU) to own an energy asset in the US, which remains the third-largest source of LNG for the country.

For more details, see Gail (India)'s fact sheet and quarterly results.

#4 Zydus Lifesciences

Zydus Lifesciences, formerly known as Cadila Healthcare, is an Indian multinational pharma company headquartered in Ahmedabad, which is primarily engaged in the manufacture of generic drugs.

It has its presence across the pharmaceutical value chain including innovating (research & development), manufacturing, marketing, and selling of finished dosage human formulations, active pharmaceutical ingredients (APIs), animal healthcare products, and consumer wellness products.

The company has manufacturing facilities at Ahmedabad, Ankleshwar, and Vadodara in Gujarat, Ponda in Goa, Raigad in Maharashtra, and Solan in Himachal Pradesh.

In 2023 so far (between 1 January 2023 and 10 March 2023), the stock has gained 13%.

On a YoY basis, Zydus Lifesciences reported an 18% rise in third-quarter profit to Rs 5,489 m helped by strong sales in its key domestic and US markets.

Sales from the company's key markets India and the United States grew 12.5% and 29.3%, respectively.

The company's consumer wellness segment in the domestic market, known for making glucose powder GluconD and anti-bacterial cooling powder Nycil, grew 7.8% from a year ago.

The impact of price hikes to mitigate inflationary pressure would be reflected from the fourth quarter onwards in the consumer wellness segment, which accounted for 10% of total revenues in the third quarter.

For more details see Zydus Lifesciences fact sheet and quarterly results.

#5 One97 Communications (Paytm)

Last on this list is Paytm.

One97 Communications is the parent entity of leading Indian mobile payments and financial services company Paytm, headquartered in Noida, India. It was founded in 2000 by Vijay Shekhar Sharma.

Through its network of subsidiaries and businesses, the company offers a range of digital payment and financial services to consumers and merchants in India. It also provides mobile advertising, marketing, and payments for merchants.

In 2023 so far (between 1 January 2023 and 10 March 2023), the stock has rallied 12%.

in the most recent quarterly results, Paytm's total revenues rose 6% sequentially and 40% on a YoY basis.

The growth was driven by an increase in merchant subscription revenues, growth in loan distribution, and momentum in the commerce business.

The highlight of the quarterly results was reducing losses. For the said quarter, Paytm reported a total loss of Rs 3,971 m, down 29% sequentially and down around 50% on a yearly basis.

The company reported an operating profit before ESOP of Rs 310 m. Some say this is an early achievement. It became operationally profitable almost three quarters before its guidance.

Paytm recently completed buyback of shares worth Rs 8,498 m at an average price of Rs 545.9 per share.

Mid way into 2023, Paytm was recategorized as a midcap company. It started the year in the largecap stocks category.

For more details, see the One97 Communications fact sheet and quarterly results.

Which other largecap stocks are rising in 2023?

Apart from the above, here are other large-cap stocks that have rallied in 2023 so far.

Company Name	Closing Price as on 09 March 2023	Share Price Rise in 2023
Shree Cement	26162.2	12.30%
Tata Motors	435.8	12.30%
Havells India	1215.2	10.50%
NTPC	180.8	8.70%

Data source: Equitymaster

Since you're interested in the top gainers, also check out our recent editorials on top performing midcap stocks of 2023 and top performing smallcap stocks of 2023.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...