Investing in large-cap stocks with high free cash flow (FCF) is a strategic approach for seeking stability and growth. High FCF indicates a company’s ability to generate cash after capital expenditures, allowing for reinvestment, dividends, or debt reduction. This financial strength makes such companies more resilient during economic fluctuations.
Here are few such high free cash flow stocks:
Oil & Natural Gas Corporation Ltd
With a market capitalization of Rs.3.68 lakh crores, Oil & Natural Gas Corporation Ltd (ONGC) share price opened at Rs.286.20 per share, down 0.1 percent from its previous close.
ONGC features a high FCF of Rs.61,598 crores in FY24 with a Price to FCF of 7.15 percent. The company’s return ratios include a ROCE (Return on Capital Employed) of 18.4 percent and ROE (Return on Equity) of 16.3 percent.
In terms of financial performance, ONGC saw a slight 1.26 percent YoY increase in revenue for Q1 FY25, reaching Rs.1,66,577 crore, while net profit dropped by 43 percent to Rs.10,236 crore during the same period.
Tata Consultancy Services Ltd
With a market capitalization of Rs.15 lakh crores, Tata Consultancy Services Ltd (TCS) share price opened at Rs.4,145.00 per share, 0.2 percent higher from its previous close.
TCS features a high FCF of Rs.41,688 crores in FY24 with a Price to FCF of 38.3 percent. The company’s return ratios include a ROCE of 64.3 percent and ROE (Return on Equity) of 51.5 percent.
In terms of financial performance, TCS saw a 7.65 percent YoY increase in revenue for Q2 FY25, reaching Rs.64,259 crore, while net profit increased 5.05 percent to Rs.11,955 crore during the same period.
With a market capitalization of Rs.10.10 lakh crores, Bharti Airtel Ltd share price opened at Rs.1,708.45 per share, 0.7 percent higher from its previous close.
Airtel features a high FCF of Rs.38,970 crores in FY24 with a Price to FCF of 27.0 percent. The company’s return ratios include a ROCE (Return on Capital Employed) of 13.1 percent and ROE (Return on Equity) of 14.9 percent.
In terms of financial performance, the company saw a 3 percent YoY increase in revenue for Q1 FY25, reaching Rs.38,506 crore, while net profit increased remarkably 210 percent to Rs.4,718 crore during the same period.
Tata Motors Ltd
With a market capitalization of Rs.3.42 lakh crores, Tata Motors Ltd share price opened at Rs.932.00 per share, 0.5 percent higher from its previous close.
Tata Motors Ltd features a high FCF of Rs.36,733 crores in FY24 with a Price to FCF of 19.6 percent. The company’s return ratios include a ROCE (Return on Capital Employed) of 20.1 percent and ROE (Return on Equity) of 49.4 percent.
In terms of financial performance, the company saw a 6 percent YoY increase in revenue for Q1 FY25, reaching Rs.1,08,048 crore, while net profit increased 73 percent to Rs.5,692 crore during the same period.
Written by – Siddesh S Raskar
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