Brokerages remain optimistic about select large-cap stocks across key sectors such as banking, automotive, IT, and cement. Amidst global uncertainty and the potential impact of tariff wars, analysts and brokerages believe that investing in large, well-established companies is a safer bet. These companies benefit from experienced leadership, strong balance sheets, and better access to talent and resources, having been in business for a longer period.
Large-cap stocks are closely monitored by both Indian and foreign institutional investors, ensuring higher transparency and a steady flow of performance reports and market insights. From a stock market perspective, these companies offer greater stability, earnings visibility, and long-term sustainability compared to their smaller counterparts.
Here are three large-cap companies projected to achieve a CAGR of more than 15 percent:
1. Marico Limited
With a market cap of Rs. 84,356.3 crores, shares of one of India’s leading FMCG companies moved up by nearly 2 percent to Rs. 660.65 on BSE. The stock has delivered positive returns of nearly 31 percent in one year, as well as nearly 1 percent YTD. Analysts at Motilal Oswal anticipate sustained double-digit growth, driven by a combination of volume expansion and strategic pricing initiatives. They forecast a rare instance of double-digit revenue growth by FY26
The food segment is projected to grow at a strong CAGR of 20-25 percent, supported by the expansion of new-age businesses, while an active innovation pipeline will help sustain momentum. Additionally, the brokerage expects that the company will achieve an 11 percent revenue CAGR and a 13 percent EBITDA CAGR over FY25-27E.
Marico experienced a significant growth in its revenue from operations by around 15.4 percent YoY from Rs. 2,422 crores in Q3 FY24 to Rs. 2,794 crores in Q3 FY25, while the net profit grew about 5.2 percent YoY from Rs. 386 crores to Rs. 406 crores.
Between FY21 and FY24, the company’s revenue from operations grew at a CAGR of 6 percent, while net profit surged at a CAGR of nearly 8 percent. Marico Limited is engaged in the business of manufacturing and marketing products under the brands such as Parachute, Saffola, Hair & Care, Mediker, Revive, Set Wet, Livon, Beardo, Just Herbs, Plix and others.
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2. Tata Power Company Limited
With a market cap of Rs. 1.19 lakh crores, shares of a leading integrated power company and a part of the Tata Group moved up by nearly 1 percent to Rs. 386 on BSE. The stock has delivered negative returns of nearly 5 percent in one year, while around 11 percent of positive returns YTD. Brokerage firm Sharekhan remains bullish on Tata Power, expecting its PAT to register a 20 percent CAGR from FY24 to FY27E, supported by a healthy Return on Equity (RoE) of around 14 percent in FY27E.
Tata Power experienced a significant growth in its revenue from operations by around 5 percent YoY from Rs. 14,651 crores in Q3 FY24 to Rs. 15,391 crores in Q3 FY25, while the net profit grew about 10.4 percent YoY from Rs. 1,076 crores to Rs. 1,188 crores.
Between FY21 and FY24, the company’s revenue from operations grew at a CAGR of 23 percent, while net profit surged at a CAGR of nearly 44 percent. The Tata Power Company Limited, India’s largest vertically integrated power company, is primarily engaged in the business of generation, transmission and distribution of electricity.
3. UltraTech Cement Limited
With a market cap of Rs. 3.38 lakh crores, shares of the third largest cement manufacturer in the world by capacity (excluding China) moved up by nearly 1 percent to Rs. 11,687.65 on BSE. The stock has delivered positive returns of nearly 18 percent in one year, as well as nearly 14 percent year-to-date.
Axis Securities remains optimistic about the growth prospects of the company’s cement business and expects UltraTech Cement to achieve a CAGR of 11 percent in Volume & Revenue, 19 percent in EBITDA, and 28 percent in PAT over FY24-FY27E. This growth is expected to be driven by capacity expansion, increased market share, operational efficiencies, and advantages from industry consolidation.
UltraTech Cement experienced a significant growth in its revenue from operations by around 3 percent YoY from Rs. 16,740 crores in Q3 FY24 to Rs. 17,193 crores in Q3 FY25, while the net profit declined about 17 percent YoY from Rs. 1,775 crores to Rs. 1,474 crores. Between FY21 and FY24, the company’s revenue from operations grew at a CAGR of 17 percent, while net profit surged at a CAGR of nearly 9 percent.
UltraTech Cement Limited, one of the largest white cement manufacturers in India, is engaged in the business of manufacturing and sale of Cement and Cement-related products. It is India’s largest manufacturer of grey cement and ready-mix concrete, and one of the top manufacturers of white cement
Written by Shivani Singh
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