IRFC To Suzlon: 5 Largecaps Are Top Performers Of 2023, 4 Of Them Paid Hefty Dividends: Over 200-350% Returns!

2023 has been an impressive year for large-cap stocks which gained much higher momentum compared to their counterparts mid-caps and small-caps after a dull last year amidst extreme volatility. In general terms, large-cap stocks are those listed companies that are well-established and above the market capitalisation of Rs 20,000 crore and above. These stocks have a stable business module which makes them favourable investment choices in times of uncertainty. But it's a cherry on top when large-caps also reward shareholders with dividends.

Here is a list of 5 large-cap stocks that are among the top performers on exchanges with triple-digit returns so far in 2023.

BSE:

Listed only on NSE, the exchange BSE has risen by an overwhelming 313% year-to-date. On Wednesday, BSE touched an intraday high of Rs 2,468 apiece, and from this level, the upside is even higher to the tune of a whopping 344%.

For the first half of FY24, on a consolidated basis, BSE earned a net profit of Rs 558.5 crore versus Rs 69.4 crore in H1FY23. While operating EBITDA zoomed to Rs 211.7 crore in H1FY24 as against Rs 63.2 crore in H1FY23. Revenue from operations stood at Rs 530.1 crore versus Rs 384.6 crore in the same period a year ago.

In 2023, BSE also announced dividends up to Rs 12 per share or 600%.

2. REC Ltd:

On Wednesday, REC touched an intraday high of Rs 439 apiece, almost flirting with its 52-week high of Rs 454.80 apiece levels. From the price, REC shares have rallied by a whopping 265% on BSE.

From the current market price of Rs 404.45, the stock has jumped by 236%.

REC recorded a consolidated revenue of Rs 22,775.80 crore in H1FY24 versus Rs 19,453.44 crore in H1FY23. Net profit stood at Rs 6,757.95 crore for the latest period, as against Rs 5,186.28 crore in H1 of FY23.

REC is among the top dividend-paying PSU stocks. In 2023, the company declared up to 141% dividends amounting to Rs 14.1 per share.

3. Suzlon Energy:

A stock which was not even Rs 11 per share at the start of January 2023, has recorded tremendous upside as the year ends. Suzlon shares have been the showstopper of 2023, and grabbed numerous attentions due to the rise in mutual funds buying, addition in the MSCI index, robust fundraising, and healthy order book.

On December 20th, Suzlon shares touched an intraday high of Rs 38.10 apiece, resulting in an overall upside of more than 255% year-to-date as of now. However, the stock corrected and closed at Rs 35.61 apiece, still giving triple-digit returns of 232.2% as of now in 2023.

After its successful QIP conclusion in August 2023, Suzlon has journeyed to become debt debt-free company thereby leading to further reduction in quarterly net finance cost by ~61% YoY.

Last month, Himanshu Mody, Chief Financial Officer, Suzlon Group highlighted that the company anchored strongly with a net cash of Rs ~599 crores by September 2023 which is a significant shift from Net Debt of Rs ~1,180 crores in March 2023. Despite slightly lower YoY volumes, Suzlon has recorded higher EBITDA owing to healthier margins. Also, profit uptake is also
significantly higher with over eight times YoY growth in PAT for H1 FY24.

Unlike the other large caps in the top 5 list, Suzlon has not paid any dividends since 2008.

4. Power Finance Corporation:

PFC touched an intraday high of Rs 411.95 apiece on BSE during trading hours on Wednesday. This resulted in a massive upside of 244% in the stock year-to-date. But from the closing price of Rs380.90 apiece, the stock is up nearly 218%.

During the first six months of FY24, PFC registered consolidated revenue of Rs 12,610.31 crore versus Rs 9,808.86 crore in H1FY24. Revenue from operations climbed to Rs 42,910.58 crore in H1FY24 versus Rs 37,530.62 crore in H1FY23.

In the current year, PFC declared dividends up to 125% amounting to Rs 12.5 per share.

5. IRFC:

IRFC is the suzlon of the railway sector in 2023. On December 20th, IRFC touched a new 52-week high of Rs 104.14 apiece. From this level, the stock has skyrocketed by over 216.53% on BSE.

During Q2FY24, the company posted a net profit of Rs 1,549.87 crore as against Rs 1,714.28 crore in Q2FY23 and Rs 1,556.57 crore in Q1FY24. Total revenue from operations stood at Rs 6,766.32 crore compared to Rs 5,809.80 crore in Q2FY23 and Rs 6,679.17 crore in Q1FY24.

At the latest, this Railway stock turned ex-dividend on November 10th for an interim dividend of Rs 0.80 per share having a face value of Rs 10 each for FY24. In FY23, the company paid 15% dividends aggregating to Rs 1.5 per share. The stock's dividend yield is at 1.96%.

On Wednesday, after their intraday gains, these five stocks tumbled heavily as investors cashed in their gains. Nevertheless, these stocks have healthy growth prospects ahead, and hence, the current prices are buying-on-dips opportunities.

In its blog, Angel One said, "Several factors fueled this impressive run-up. The Indian economy, recovering from the pandemic's grip, displayed strong growth signals. Government initiatives like infrastructure development projects and the Production Linked Incentive (PLI) scheme boosted investor confidence. Additionally, rising global commodity prices benefitted resource-based sectors like energy and infrastructure, further propelling their stocks."

The brokerage also added, "The stellar performance of these large-cap companies resonates throughout the Indian economy. Their robust growth translates to higher tax revenues for the government and enhanced access to capital for smaller businesses. Furthermore, improved corporate earnings boost investor confidence, attracting foreign investments and promoting overall economic expansion."

In conclusion, Angel One said, that the top-performing large-cap stocks of 2023 exemplify the strength and stability of blue-chip companies. Their commendable YTD returns underscore their resilience in the face of market dynamics, making them noteworthy considerations for investors aiming for sustained growth and stability in their portfolios.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.