FY23-24: Top 10 Profit-Making Listed Companies in India

With the annual result season is on the verge of completion, it's time to understand benefits of investing in profit-making top listed companies in India. Perhaps, some of the reputed and blue-chip companies may not have found place in top 10 profit-making listed companies in India. Generally, value stocks viz. large cap blue-chip companies dominate the list when it comes to absolute net profit numbers.

1. Stability and Reliability: Profitable companies often have stable business models and consistent revenue streams, which can provide investors with a sense of stability and reliability in their investments:

2. Strong Financial Performance: Profitable companies typically have strong financial metrics, including healthy profit margins, high return on investment, and positive cash flows, indicating their ability to generate wealth for shareholders.

3. Dividend Income: Profitable companies are more likely to distribute dividends to their shareholders as a reward for their investment. This can provide investors with a steady income stream in the form of dividends.

4. Potential for Capital Appreciation: Profitable companies may experience growth in their stock prices over time as their earnings increase, leading to capital appreciation for investors.

5. Risk Mitigation: Investing in established, profit-making companies can help mitigate investment risk compared to investing in smaller or less profitable companies. Profitable companies tend to have lower volatility and are less susceptible to economic downturns.

6. Market Leadership: Top profit-making companies often dominate their respective industries and possess a competitive advantage, such as strong brand recognition, market share, and customer loyalty.

7. Diversification: Investing in a diversified portfolio of the top profit-making companies across different sectors can provide investors with exposure to various industries and spread out their risk.

8. Access to Growth Opportunities: Profitable companies may reinvest their earnings into expansion, innovation, and research and development, positioning themselves for future growth and potentially higher returns for investors.

9. Transparency and Disclosure: Larger, profitable companies are typically subject to stricter regulatory requirements, leading to greater transparency and disclosure of financial information, which can provide investors with confidence and trust in the company's operations.

10. Liquidity: Stocks of top profit-making companies are often highly liquid, meaning that investors can easily buy and sell shares without significantly impacting the stock price, providing them with flexibility in their investment decisions.

(Rs in Crore except EPS)

Name of the Company	Turnover / Sales FY22-23	Turnover / Sales FY23-24	Net Profit FY22-23	Net Profit FY23-24	Equity Capital as on 31.03.24	EPS as on 31.03.24	Market capitalization as on 28.05.24
​Reliance Industries Ltd	974,864	1,000,122	73,670	79,020	6,766	102.90	1,970,499
State Bank of India	332,103	415,131	50,232	61,077	892	68.44	7,41,769
HDFC Bank Ltd	161,586	258,341	44,109	60,812	760	85.83	1,163,818
TCS Ltd	228,907	245,315	42,303	46,099	362	125.88	1,389,303
ICICI Bank Ltd	129,063	165,849	31,897	40,888	1,405	58.38	792,250
LIC of India	788,173	853,707	36,397	40,676	6,325	64.31	646,035
ONGC Ltd	163,144	149,180	40,097	40,526	6,290	32.21	345,140
IOC Ltd	941,188	871,126	8,242	39,619	14,121	28.77	236,107
Coal India Ltd	138,252	142,324	31,723	37,369	6,163	60.69	300,433
Tata Motors Ltd	350,600	443,878	2,690	31,807	767	81.85	608,751

On perusal of above table, it is noticed that top 10 profit-making companies comprise of 5 from public sector and remaining 5 from private sector. The list has 4 stocks from BFSI sector. The profits of these companies are phenomenal, ranging from Rs 31,807 crore to Rs 79,020 crore. Reliance Industries has crossed turnover of Rs 1 million crore for the first time. The topline and bottom-line figures of previous year are reproduced for growth comparison.

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