As the broader markets are in a correction mode, all thanks to rising fears of a global recession, investors might want to capitalize on this opportunity to add some of the profitable large caps to their portfolios. During volatile times, large-cap companies not just make the portfolio more stable with lesser drawdowns but also recovers at a decent pace when the tide turns.
On that note, I have listed below three profitable Nifty 50 companies that have a market capitalization of over INR 98,000 crores and were able to generate the ‘highest’ profit margins in FY22.
Power Grid Corporation of India
The name that tops the list is a PSU - Power Grid Corporation of India Ltd (NS: PGRD ). The company has a market capitalization of INR 1,45,089 crores and is engaged in the power transmission business with responsibility for planning, implementation, operation and maintenance of the Inter-State Transmission System.
In FY22, Power Grid recorded a record profit of INR 16,824.07 crores over a revenue of INR 46,341.99 crores, giving it a profit margin of a massive 36.3%, up from 29% in FY21. The stock is also trading at an inflation-beating dividend yield of 7.09%, which makes it one of the good choices for a dividend portfolio.
Divi’s Laboratories Limited
Divi's Laboratories Ltd. (NS: DIVI ) is a pharmaceutical company with a market capitalization of INR 98,054 crores and is engaged in the manufacturing and sale of active pharmaceutical ingredients (APIs) and Intermediates. Its products include Generic APIs, Intermediates, Peptide Building Blocks and Carotenoids.
The net income of the company jumped 49.19% on a YoY basis in FY22 to INR 2,960.45 crores on the back of a 29.04% jump in revenue to INR 9,073.7 crores in the same period. The good performance has soared the company's PAT (profit after tax) margin to 32.63%, making it one of the only two Nifty 50 companies with PAT margins above 30% in FY22.
Adani Ports and Special Economic Zone Limited
The last name is from the Adani group, which is Adani Ports and Special Economic Zone Ltd (NS: APSE ). The company has a market capitalization of INR 1,72,454 crores and is engaged in the business of developing, operating and maintaining the Port and Port-based related infrastructure facilities.
FY22 was the best year for the company with a record revenue of INR 18,281.66 crores and a profit of INR 4,728.09 crores. Although profit was down over the previous year despite a jump in revenue, the company has still been able to clock a PAT margin of 22.82%. It is also to be noted, that the company has been increasing its profit at a 5-year CAGR of only 3.86% which could be a deal-breaker for some investors.
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