High EPS Stocks in India: Earnings per share (EPS) means how much money the company/investor earns for each share outstanding. It is calculated by dividing the net profit by the total number of outstanding shares. Some investors go for high EPS stocks in order to decrease the underlying volatility of their portfolio.
This is because high EPS stocks are usually the ones with high share prices too. In this article, we’ll present you with such high EPS stocks in India which you can add to your watchlists.
High EPS Stocks In India
In our article on ‘high EPS stocks in India’, we’ll learn about the history and business of the companies. Alongside this, we have also provided the key metrics for the stocks. Later a table presents more such names. So without further ado, let us jump in.
High EPS Stocks in India #1 – MRF Ltd
| CMP | ₹85,000 | Market Cap (Cr.) | ₹36,000 |
| EPS | ₹1,399 | Stock P/E | 61.3 |
| RoCE | 7.05% | RoE | 4.85% |
| Promoter Holding | 28% | Book Value | ₹33,566 |
| Debt to Equity | 0.22 | Price to Book Value | 2.54 |
| Net Profit Margin | 3.4% | Operating Profit Margin | 10.7% |
Founded in 1946, MRF has evolved from a toy balloon manufacturer into a producer of automobile tires and tubes. The auto-ancillary stock is also the most expensive stock to own in India with a current market price of Rs 85,000.
It is the nation’s largest tire manufacturer with 10 factories across the country producing a broad range of tires for 2-wheelers to fighter jets. In addition to this, MRF also has strong brand equity because of its old legacy and past marketing campaigns.
MRF Ltd. serves as the holding company of the MRF Group. On a consolidated basis, its revenues have increased from Rs 14,954 crore in FY18 to Rs 19,317 crore in FY22. However, during the same period, its net profit declined to Rs 669 crore from Rs 1,132 crore because of cost inflation.
Despite the decline in the bottom line, MRF still stands as the highest EPS stock in India with a trailing twelve months (TTM) EPS of Rs 1,399.
High EPS Stocks in India #2 – Page Industries
| CMP | ₹38,000 | Market Cap (Cr.) | ₹42,500 |
| EPS | ₹613 | Stock P/E | 62.1 |
| RoCE | 67.2% | RoE | 54.4% |
| Promoter Holding | 46% | Book Value | ₹1,179 |
| Debt to Equity | 0.12 | Price to Book Value | 32.20 |
| Net Profit Margin | 13.8% | Operating Profit Margin | 20.20% |
Page Industries was established in 1994 as a licensed manufacturer, distributor, and marketer of Jockey International’s products in India. Over the years, the company has emerged as a leading player in the activewear, innerwear, thermal wear, footwear, and swimwear segments.
As of the present date, Page Industries is a licensed manufacturer of Speedo and Jockey brands both with an international presence spreading to Sri Lanka, Bangladesh, Nepal, UAE, Oman, and Qatar.
The company operates 15 manufacturing facilities with strong backward integration facilities. It has a widespread distribution network with more than 1,228 EBOs and 2,967 LFSs. It is run by a strong workforce of 26,034 employees of which 80% are women.
The revenues of Page Industries have grown at a CAGR of 8.78% from Rs 2,551 crore in FY18 to Rs 3,886 crore in FY22. As for the recent figures, its TTM net profit was Rs 683 crore on sales of Rs 4,931 crore making it the second-highest EPS stock with TTM EPS of Rs 613.
High EPS Stocks in India #3 – Bosch
| CMP | ₹18,000 | Market Cap (Cr.) | ₹53,000 |
| EPS | ₹467 | Stock P/E | 38.6 |
| RoCE | 14.8% | RoE | 11.8% |
| Promoter Holding | 70.5% | Book Value | ₹3,652 |
| Debt to Equity | 0.01 | Price to Book Value | 4.90 |
| Net Profit Margin | 10.3% | Operating Profit Margin | 12.4% |
Bosch Ltd. is the Indian subsidiary of Robert Bosch GmbH, German engineering, and technology MNC. The Indian entity is a leading provider of technology and services to the mobility sector with a presence in other fields as well such as energy, smart cities, consumer goods, and more.
The German parent entered the nation in 1951 when it established its first manufacturing site. In the last 70 years, the company has scaled to 18 manufacturing facilities and 7 development & application centers. It had 30,240 employees at the end of FY22 with Rs 26,827 crore in sales.
Despite a presence in multiple industries, Bosch derives a majority of its revenues from the automotive industry. It earned Rs 10,037 crore or 85.19% of its total FY22 revenues from automotive products.
Its TTM net profit stood at Rs 1,378 crore on sales of Rs 14,177 crore after the December 2022 quarter results. The company has slowly returned to pre-pandemic sales levels in the last two years after reporting lower top-line in FY20 & FY21.
Bosch is a debt-free auto-ancillary stock with a high promoter holding of 70.5%.
High EPS Stocks in India #4 – Honeywell Automation India
| CMP | ₹34,500 | Market Cap (Cr.) | ₹30,500 |
| EPS | ₹451 | Stock P/E | 76.4 |
| RoCE | 16.8% | RoE | 12.5% |
| Promoter Holding | 75% | Book Value | ₹3,361 |
| Debt to Equity | 0.02 | Price to Book Value | 10.30 |
| Net Profit Margin | 11.5% | Operating Profit Margin | 14.8% |
Honeywell Automation India Ltd. (HAIL) is the Indian subsidiary of Honeywell International, an American multinational conglomerate with a presence in the aerospace, building technologies, performance materials & technologies (PMT), and safety & productivity solutions (SPS) industries.
The local entity came into existence when the Tata Group and Honeywell entered into a JV to form Tata Honeywell in 1987. Later, Tatas exited selling their stake to Honeywell International making the latter a majority promoter shareholder. As of the present date, the promoter holding stands at a maximum permitted of 75%.
Powered by more than 3,000 employees across the country, HAIL is an industry leader in integrated automation and software solutions, including process solutions and building solutions. It has a diversified portfolio of products across environmental & combustion sensing and controls.
In addition to this, it is also an engineering services provider in the automation and control space internationally.
Honeywell is a debt-free stock with TTM earnings per share of Rs 451 after Q3FY23 results making it the fourth-highest EPS stock in our list of high EPS stocks in India.
High EPS Stocks in India #5 – Abbott India
| CMP | ₹20,100 | Market Cap (Cr.) | ₹42,500 |
| EPS | ₹437 | Stock P/E | 45.9 |
| RoCE | 38.4% | RoE | 29.5% |
| Promoter Holding | 75% | Book Value | ₹1,277 |
| Debt to Equity | 0.05 | Price to Book Value | 15.70 |
| Net Profit Margin | 16.2% | Operating Profit Margin | 22.1% |
Abbott India is the third listed Indian subsidiary of a foreign entity in our article on the high EPS stocks in India. It is owned by Abbott Laboratories, USA, and is one of the leading pharmaceutical companies in India.
It manufactures vaccines, drugs, medicines, and other products for women’s health, gastroenterology, multi-specialty use, central nervous system, and consumer health. Digene, Betahistine, and Brufen are some of the key brands of this pharma company.
The company operates a state-of-the-art manufacturing facility in Goa. It is led by a strong workforce of over 3,500 people and has operations across four neighboring countries of India: Nepal, Sri Lanka, Maldives, and Bhutan.
Abbott is another debt-free stock on this list. It has high return ratios with RoCE and RoE at 38.4% and 29.5% respectively. Its sales have grown from Rs 3,298 crore in FY18 to Rs 4,919 crore in FY22. During the same five-year period, its net profit doubled from Rs 401 crore to Rs 799 crore.
List of High EPS Stocks in India
The table below lists some more high EPS stocks in India.
| Company Name | Industry | Market Cap (Rs Cr) | CMP (Rs) | TTM EPS (Rs) |
|---|---|---|---|---|
| MRF | Tyres & Rubber Products | 36,000 | 85,000 | 1,399 |
| Page Industries | Textiles & Apparel | 42,500 | 38,000 | 613 |
| Bosch | Auto Ancillary | 53,000 | 18,000 | 467 |
| Honeywell Automation India | Electronic Goods | 30,500 | 34,500 | 451 |
| Abbott India | Pharmaceuticals | 42,500 | 20,100 | 437 |
| Piramal Enterprises | Finance - NBFC | 18,500 | 770 | 430 |
| Bajaj Holdings & Investment | Finance - NBFC | 69,000 | 6,200 | 414 |
| Shree Cement | Cement | 94,000 | 26,000 | 389 |
| 3M India | Diversified | 25,750 | 22,750 | 354 |
| Sundaram-Clayton | Auto Ancillary | 9,750 | 4,830 | 326 |
In Conclusion
From our analysis of high EPS stocks above we can conclude that most of these companies never had a stock split. This has resulted in their higher share prices with fewer outstanding shares. However, in the long term, the performance of the company has much more bearing on the stock price.
In your opinion, should investors give high importance to EPS independent of other factors such as its growth, consistency, etc? Or should it be a holistic approach to investing? How about we continue this conversation in the comments below?
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