Best Large Cap Stocks Under Rs 200: In an economy where everything is getting expensive, it gets difficult to find value for money, be it a good meal at a restaurant, a cinematic experience, or a good quality product. We managed to find the best large cap stocks under ₹200 with a high net profit margin, to bring the best value at the most reasonable price in the stock market.
In this article, we’ll go through the 5 best large cap stocks under Rs 200 with a high net profit margin, for a price lesser than an average movie ticket! So read on to find out.
Best Large Cap Stocks Under Rs 200
Herein, we will look at the best Large Cap Stocks Under Rs 200 With High Net Profit Margins. We will look at the company overview along with its financials.
Best Large Cap Stocks Under Rs 200 #1 – Tata Steel Limited
About The Company
At the first position on our list of best large cap stocks under Rs 200 with a high net profit margin, is Tata Steel. It is one of the oldest Indian companies, dating back to Colonial times. Tata Steel is one of the largest companies in India, as well as the Tata Group.
The company makes different classes of steel in its factories located on different continents, including Europe and South East Asia. Their steel products are used across multiple industries worldwide, including their own business lines.
Fundamentals Of Tata Steel
| CMP | ₹ 108 | Market Cap (Cr.) | ₹ 1,31,626 Cr. |
| EPS | ₹ 13.8 | Stock P/E | 7.41 |
| ROCE | 31.5 % | ROE | 42.4 % |
| Face Value | ₹ 1.00 | Book Value | ₹ 88.0 |
| Promoter Holding | 33.9 % | Price to Book Value | 1.22 |
| Debt to Equity | 0.81 | Dividend Yield | 4.78 % |
| Net Profit Margin | 17.1 % | Operating Profit Margin | 16.1 % |
Tata Steel is one of the biggest large-cap companies in India, with a current market capitalization of ₹1.31 lac crore. It is also one of the highest revenue-generating companies in India, as well as the Tata Group.
In FY 22, the steel maker reported sales revenues of ₹2,43,959 crores and net profits of ₹41,749 crores, both at record highs in the company’s history. In FY 18, Tata Steel reported net revenues of ₹123,249 crores and net profits of ₹17,743 crores.
The company’s operating profit margin has improved significantly from 17 percent to 26 percent in the 5-year period. Its latest NPM, of 17.1 percent, makes it the highest on our list.
The P/E ratio of Tata Steel is 7.41, slightly lower than its industry P/E of 10.7. It has a manageable and ideal D/E ratio of 0.81. Both ROE and ROCE are at phenomenal levels of 42.4 percent and 31.5 percent.
The promoters of Tata Steel, Tata Sons, hold a 33.9 percent stake in the company, of which 1.5 percent is pledged. Their holding stake is down from 34.4 percent in the quarter ending September 2021. In the past 5 years, Tata Steel has given a net positive return of 85 percent.
Best Large Cap Stocks Under Rs 200 #2 – Bharat Electronics Limited
About The Company
BEL or Bharat Electronics, is a Navratna PSU company, under the Ministry of Defense. They are into the manufacturing of electronics products for three factions of the Indian military – The Navy, the Army, and the Air Force. This includes satellite integration, space integration, cyber-security, and energy storage.
Fundamentals Of Bharat Electronics
| CMP | ₹ 103 | Market Cap (Cr.) | ₹ 75,057 Cr. |
| EPS | ₹ 3.77 | Stock P/E | 27.2 |
| ROCE | 27.1 % | ROE | 20.5 % |
| Face Value | ₹ 1.00 | Book Value | ₹ 17.7 |
| Promoter Holding | 51.1 % | Price to Book Value | 5.84 |
| Debt to Equity | 0 | Dividend Yield | 1.47 % |
| Net Profit Margin | 15.6 % | Operating Profit Margin | 21.8 % |
BEL is a publicly listed Navratna PSU, with a market cap of ₹75,057 crores. The FY 22 was a prosperous year for the company, as they earned ₹15,368 crores in revenue and ₹2,400 crores in net profits.
The company’s operating profit in the past 5 years has levitated around 20 percent and above. For the year ending March 2018, BEL earned ₹10,401 crores in revenues and ₹1,431 crores in net profits.
The company’s NPM of 15.6 percent makes it the 2nd contender on our list of best large-cap stocks under ₹200 with a high net profit margin. BEL’s stock has a P/E of 27.5, much lower than its industry P/E of 46.2. This indicates that the stock is currently quite underpriced when compared to its industry. BEL is a debt-free PSU, having a null D/E ratio.
It has very positive and upward return ratios of 20.5 percent (ROE) and 27.1 percent (ROCE). The promoter of BEL, the Government Of India, owns a strong and steady 51.1 percent share in the company. In 5 years BEL has given a multi-bagger return of 138 percent, well over doubling investors’ holding value in the company.
Best Large Cap Stocks Under Rs 200 #3 – GAIL (India) Limited
About The Company
The government of India has some important companies that keep the current system of infrastructure running smoothly. One such company is GAIL, a major natural gas company in India. They are involved in LPG production, transmission, and the operation of over 15,413 km of natural gas pipelines throughout the country. The company has a market share of over 70 percent in national gas transmission.
Fundamentals Of GAIL
| CMP | ₹ 107 | Market Cap (Cr.) | ₹ 70,354 Cr. |
| EPS | ₹ 12.8 | Stock P/E | 8.36 |
| ROCE | 23.3 % | ROE | 20.9 % |
| Face Value | ₹ 10.0 | Book Value | ₹ 100 |
| Promoter Holding | 51.9 % | Price to Book Value | 1.07 |
| Debt to Equity | 0.22 | Dividend Yield | 6.23 % |
| Net Profit Margin | 13.3 % | Operating Profit Margin | 8.01 % |
GAIL is a large-cap gas company and is the dominant company involved in gas distribution, countrywide. The FY 22 was GAIL’s most rewarding year, as the company reported record sales of ₹92,770 crores and record profits of ₹12,304 crores. In FY 18, GAIL earned ₹54,496 crores in sales and ₹4,805 crores in net profits.
The company had a notable 13.3 percent net profit margin. Unsurprisingly, GAIL has sky-high return ratios. The ROE of 20.9 percent and ROCE of 23.3 percent indicate efficient use of capital to improve shareholder value and company sales.
GAIL has a stock P/E ratio of 8.3, much lower than its industry P/E of 13.5. The company has a D/E ratio of 0.22, well within the ideal range. The government holds a 51.9 percent stake in the company, making them the largest shareholder. Over the past 5 years, GAIL India has given an underwhelming negative return of (-2.43) percent.
Best Large Cap Stocks Under Rs 200 #4 – NTPC Limited
About The Company
Powerful stocks come from powerful places. NTPC (National Thermal Pnationalrporation) is India’s largest power utility company. With an installed capacity of 71,644 MW, they plan on becoming a global leader in power utility. The Maharatna company generates power through various energy sources, both conventional and renewable.
Fundamentals Of NTPC
| CMP | ₹ 171 | Market Cap (Cr.) | ₹ 1,66,152 Cr. |
| EPS | ₹ 17.8 | Stock P/E | 9.6 |
| ROCE | 9.23 % | ROE | 12.6 % |
| Face Value | ₹ 10.0 | Book Value | ₹ 146 |
| Promoter Holding | 51.1 % | Price to Book Value | 1.16 |
| Debt to Equity | 1.58 | Dividend Yield | 4.08 % |
| Net Profit Margin | 12.6 % | Operating Profit Margin | 26.9 % |
NTPC is a large-cap Maharatna company. They have been involved in the power industry since 1975. Through its various plants and joint ventures, the company has earned a total revenue of ₹132,669 crores, of which ₹16,960 crores were profits in FY22.
The operating profit margin of the company has improved over the years, from 26 percent in FY 18 to 30 percent in FY 22. For FY 18, NTPC earned ₹88,083 crores and made a net profit of ₹10,502 crores.
The company has a good NPM of 12.6 percent, placing it at the #4 spot on our list. Coming to the returns ratios of the company, ROE (12.6 percent) and ROCE (9.23 percent) are on the scale of low to average. It has a slightly high D/E ratio of 1.58, indicating higher debt.
Further, the P/E of the company (9.6) is almost half that of its industry(19.7), hinting at an underpricing of its shares. The Government Of India holds a mighty 51.1 percent stake in NTPC and hasn’t shed any major holding recently. In the past 5 years, NTPC has given a positive but low return of 20.7 percent.
Best Large Cap Stocks Under Rs 200 #5 – ONGC
About The Company
At #5 is ONGC, one of the biggest Maharatna companies in India. The company is involved in crude oil and natural gas production, being single-handedly the largest domestic producer. Their crude oil production flows downstream to major oil companies that convert it into usable fuels such as petrol, diesel, and cooking gas.
Fundamentals Of ONGC
| CMP | ₹ 165 | Market Cap (Cr.) | ₹ 2,07,889 Cr. |
| EPS | ₹ 33.6 | Stock P/E | 5.11 |
| ROCE | 16.8 % | ROE | 19.5 % |
| Face Value | ₹ 5.00 | Book Value | ₹ 222 |
| Promoter Holding | 58.9 % | Price to Book Value | 0.72 |
| Pledged percentage | 0 | Dividend Yield | 6.76 % |
| Net Profit Margin | 10.3 % | Operating Profit Margin | 11.5 % |
ONGC is a large-cap PSU stock and a goliath in crude oil production in India. It is one of the highest revenue-generating engines of the government, earning ₹491,216 crores and net profits of ₹49,294 crores.
The company has an operating profit margin of 16 percent, down from 18 percent in FY 18. ONGC has an NPM of 10.3 percent, which might seem fractional but given the company’s revenues and scale of operations, has a huge impact felt in its P&L statement.
Five years prior, ONGC reported sales of ₹322,706 crores and a net profit of ₹26,068 crores. The stock P/E of 5.11 is much lower than its industry P/E of 13.4. The company also has an acceptable D/E ratio of 0.54.
Its ROE (19.5 percent) and ROCE (16.8 percent) are quite good, given the size of ONGC and its operation size. The government of India has a 58.8 percent stake in ONGC, down from 60.4 percent in December 2021. Despite solid revenues and profits, the shares of ONGC have given a net negative return of (-11.9 percent) in 5 years.
Complete List Of Large Cap Stocks Under Rs 200
| Sl No | Company | Industry | MCap(Cr) | Current Price (Rs) | PE Ratio TTM |
|---|---|---|---|---|---|
| 1 | Oil & Natural Gas Corporation Ltd. | Oil Exploration | ₹210,216.47 | ₹167.10 | 4.97 |
| 2 | NTPC Ltd. | Power Generation, Distribution | ₹174,006.67 | ₹179.45 | 9.82 |
| 3 | Tata Steel Ltd. | Steel & Iron Products | ₹132,663.96 | ₹108.55 | 15.14 |
| 4 | Indian Oil Corporation Ltd. | Refineries | ₹118,604.28 | ₹83.99 | 19.29 |
| 5 | Bank Of Baroda | Bank - Public | ₹92,308.81 | ₹178.50 | 7.90 |
| 6 | Bharat Electronics Ltd. | Engineering - Industrial Equipments | ₹79,384.20 | ₹108.60 | 28.80 |
| 7 | GAIL (India) Ltd. | Industrial Gases & Fuels | ₹71,832.96 | ₹109.25 | 8.52 |
| 8 | IDBI Bank Ltd. | Bank - Private | ₹57,245.79 | ₹53.24 | 15.45 |
| 9 | Zomato Ltd. | e-Commerce | ₹53,628.50 | ₹62.51 | 0.00 |
| 10 | Punjab National Bank | Bank - Public | ₹53,414.44 | ₹48.51 | 29.31 |
| 11 | Samvardhana Motherson International Ltd. | Auto Ancillary | ₹52,767.99 | ₹77.87 | 54.78 |
In Closing
Large-cap stocks give investors, conservative or otherwise, an inbuilt sense of security given the company’s history. In this article, we covered some of the best large cap stocks under Rs 200 with high net profit margins, showing that even large companies have the potential to earn immense profits despite the size and cost of operations. We hope you found this article educational and interesting. Happy Investing!
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