- TCS has emerged as the most profitable company in India.
- The government of India wants to privatize BPCL since 2019 and the privatization is expected to happen in March 2022.
- Various analysts have given target prices for each of these shares.
IT major Tata Consultancy Services has emerged as the most profitable company in India. According to the data revealed by Inderjith Singh, Minister of Corporate Affairs, the top 5 most profitable companies are Tata Consultancy Services, Indian Oil Corporation, Reliance Industries, Infosys and Bharath Petroleum
1.Tata Consultancy Services
Tata Consultancy Services is a part of the Tata Group and is one of the largest companies in the world that provides IT services, business solutions and consultancy. It operates in 5 verticals: Banking, financial services & insurance, media and technology, communication, and manufacturing. Most of its revenue comes from its client base in America, Europe and India. It pays dividends generously.
It posted a consolidated net profit of 9769 crores, up by 12.3% year on year (YoY). Its revenue from operations grew by 16.3% YoY, from ₹42,015 crores to ₹48,885 crores.
Over 43 analysts have given a buy rating, but some of them are becoming neutral. The median price target of these analysts is ₹4,154, which is 16% above its current price. The highest target among these was ₹5000 per share and the lowest was ₹2,935 per share
2. Indian Oil Corporation (IOC)
Indian Oil Corporation is a company controlled by the Government of India and is involved in the business of the entire hydrocarbon value chain of natural gas and petrochemicals. It is the largest refining company in India and has a leadership position. It has 40 years of experience in lubricant formulations, refinery processes and pipeline transportation.
It reported a consolidated net profit of ₹8016.06 crores for the December quarter, up 52.62% from ₹4102.37 crores in the corresponding quarter last year. Its revenue from operations is ₹1,99,375.30 crores, up 35% from ₹1,47,676.04 crores in the same quarter last year.
ICICI Direct had given a target of ₹124.25, on 18th January 2022, achievable in one year.
3. Reliance Industries Limited
It is the largest private-sector corporation in India and a Fortune 500 company. From being a textiles and polyester company, it has set foot in many industries and it touches the lives of almost all Indians on a daily basis. Retail business, digital services, petrochemicals, oil and gas exploration and media and entertainment account for its major sources of revenue.
It reported a consolidated net profit of ₹18,549 crores for the quarter ended December 2021 and its revenues stood at ₹1.85 lakh crores.
IIFL has given a buy call on the company, with a target price of ₹2650, in January 2022. Morgan Stanley has given a target price of ₹2,926 per share on February 18th, 2022.
4. Infosys Limited
Infosys limited is another IT major that provides consulting, digital services, outsourcing and different types of technologies to its clients. It is one of the largest companies in India and one of the largest IT companies in the world. It became the first Indian company to be listed on the Nasdaq.
In the recent quarter, it reported a 12% jump in its net profit YoY, from ₹5197 crores to ₹5809 crores. Its revenue rose from ₹25927 crores to 31867 crores.
HDFC Securities raised its target price from ₹2100 per share to ₹2200 per share in January, this year. Emkay Global has also given a buy call on Infosys with a target price of ₹2,160 in one year, as of January 13th, 2022.
5. Bharat Petroleum Corp Ltd
BPCL is a public sector company that is engaged in the business of refining crude oil and marketing petroleum products. High-Speed Diesel accounts for more than half of its revenue, followed by motor spirit and LPG. The company serves more than 8000 Industrial customers, has 58 aviation service stations, sells more than 400 grades of lubricant products and has a customer base of more than 50 LNG customers.
The government wants to privatize the company and since November 2019 by divesting 1 lakh crores. It is expected that the divestment will happen by March 2022.
BPCL reported a consolidated net profit of ₹2805.09 crores, in the December quarter, up by 47.63% from the corresponding quarter last year. Its revenue from operations rose by 34.83% to ₹1,17, 702.59 crores.
ICICI Direct has a buy call on the stock with a target of ₹520 per share in one year, as of January 18th, 2022.
