Beta measures a stock’s volatility in relation to the stock market as a whole. A beta of 1 indicates that the stock’s price moves in line with the market. A beta less than 1 suggests the stock is less volatile than the market, while a beta greater than 1 indicates the stock is more volatile.
Overall, investing in low-beta stocks can be a strategic move for investors who want to minimize their exposure to market volatility, protect their portfolios against downturns, and potentially achieve long-term outperformance.
Listed below are such large-cap stocks that have a beta of less than 1:
Avenue Supermarts Ltd
With a market capitalization of Rs. 2,93,155 crores, the shares of the national supermarket chain started Tuesday’s trading session on a higher note at Rs. 4,399 compared to its previous close of Rs. 4,349.35. During the trading session, the shares hit a high of Rs. 4,582.85, gaining around 5 percent and closed the day at Rs. 4,548 apiece. Moreover, the stock has a Beta of 0.39.
Looking at the company’s financial performance, the revenue decreased by 6 percent from Rs. 13,572 crores during the December quarter to Rs. 12,726 crores in the March quarter. On the other hand, the net profits declined by 18 percent from Rs. 690.41 crores to Rs. 563.14 crores during the same timeframe.
Coming onto to the company’s important financial ratios, the return on equity (RoE) stood at 13.56 percent during FY23-24 and the return on capital employed was recorded at 18.33 percent during the same period. Furthermore, the net profit margin stood at 4.99 percent during FY23-24.
Cipla Ltd
With a market capitalization of Rs. 1,17,440 crores, the shares of the Pharmaceutical company started Tuesday’s trading session on a higher note at Rs. 1,460 compared to its previous close of Rs. 1,452.35. During the trading session, the shares hit a high of Rs. 1,476.95, gaining around 1 percent and closed the day at Rs. 1,462 apiece. Moreover, the stock has a Beta of 0.26.
Coming onto the company’s financial statements, the revenue increased by around 7 percent from Rs. 6,505.66 crores during the December quarter to Rs. 6,082.37 crores in the March quarter. On a contrasting note, the net profits decreased by 12.5 percent from Rs. 1,068.51 crores to Rs. 934.4 during the same period.
Looking at the company’s important financial ratios, the return on equity (RoE) stood at 15.43 percent during FY23-24 and the return on capital employed was recorded at 21.79 percent during the same period. Furthermore, the net profit margin stood at 16.12 percent during FY23-24.
Hindustan Unilever Ltd
With a market capitalization of Rs. 5,86,681 crores, the shares of FMCG company started Tuesday’s trading session on a higher note at Rs. 2,374 compared to its previous close of Rs. 2,355.90. During the trading session, the shares hit a high of Rs. 2,510.05, gaining around 6 percent and closed the day at Rs. 2,496 apiece. Moreover, the stock has a Beta of 0.59.
As per the latest financial statements, the revenue decreased marginally by 1.6 percent from Rs. 15,294 crores in Q3FY24 to Rs. 15,041 crores during Q4FY24. Contrastingly, the net profits increased by 2 percent from Rs. 2,508 crores to Rs. 2,561 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 20.06 percent and a return on capital employed (RoCE) of 21.72 percent for the period spanning FY23-24. Furthermore, the net profit margin stood at 16.61 percent during FY23-24.
United Breweries Ltd
With a market capitalization of Rs. 50,286 crores, the shares of the alcohol manufacturing company started Tuesday’s trading session on a higher note at Rs. 1,888.95 compared to its previous close of Rs. 1,876.30. During the trading session, the shares hit a high of Rs. 1,979.10, gaining around 5 percent and closed the day at Rs. 1,925 apiece. Moreover, the stock has a Beta of 0.71.
Looking at the company’s financial statements, the revenue increased by 15 percent from Rs. 4,154.98 crores in the December quarter to Rs. 4,788.68 crores during the March quarter. On the other hand, the net profits declined by 5 percent from Rs. 85.8 crores to Rs. 81.55 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 9.81 percent and a return on capital employed (RoCE) of 13.21 percent for the period spanning FY23-24. Furthermore, the net profit margin stood at 5.05 percent during FY23-24.
Written By Vaibhav Patil
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