Nowadays investment in stock market becomes very popular. Most of the people invest their money in stock market to earn return. But before investing money in stock market you should have knowledge about stock market and current top gainer companies to earn higher return. It is always better to have good understanding about the stock market and the companies in which you are investing to have a good balanced portfolio.
Meaning of Stock Market
Share or Stock Market is a platform where shares of many companies are bought and sold. This is a place where some people either earn a lot of money or lose all their money. Buying shares of a company means becoming a shareholder in that company. It means that if companies make profit in future, investor will earn return. But if company suffer losses, investors will also suffer loss on their investments.
Just as it is easy to make money in the share market, in the same way it is equally easy to lose money here because there are ups and downs in the stock market. So, before investing in stock market investors must do a proper research to get good return in the long term.
5 Stocks in Focus
- BHARAT PETROLEUM CORPORATION (BPCL):- BPCL was founded in 1973. Presently, it is trading at ₹456.90 (Closing price on 9th July 2021). Firm has a high level of operating leverage of 4.57 and its cash flows is well-managed, with a PAT ratio of 1.25. Its current market capitalisation stands at ₹99113.16 Crore. Over last one year, stock earned 21.27% return. BPCL has a PE ratio 6.13 (Consolidated) and D/E ratio 0.89 (for the F.Y. 2020-21), which means that company has a low Debt-to –capital ratio. BPCL ranks 4th out of 22 companies in refineries sector. Thus, its good idea to invest in BPCL for long term.
- ADANI PORTS:- It is the largest company in port sector. It was founded in 2016. Presently, its stock value is ₹728.50 (Closing price on 9th July 2021). ADANIPORTS has operating income of ₹5063 Crore (for the Financial Year ended on 31.03.2021). Its cash flows is managed, with a Net Operating margin of 68.22%. Its current market capitalisation stands at ₹148741.62 Crore. Over last one year, stock earned 112.30% return. BPCL has a PE ratio 29.65 (Consolidated). ADANIPORTS is listed on BSE with BSE code of 532921 and on NSE with NSE Symbol of ADANIPORTS and ISIN of INE742F01042.
- HDFC BANK LTD:– HDFC is a largest company in banking sector. The last traded share price of HDFC bank ltd is ₹1502. Its current market capitalisation stands at ₹830113.21 Crore. Bank has the PE ratio of 26.68 (Consolidated) and dividend yield 0.43%. HDFC bank ltd hit a 52-week high of 1641 on 16-02-2021 and 52-week low of 993 on 03-08-2020. Its stocks are up by 33.52% over last one year.
- BAJAJ FINSERV LTD:- Bajaj finserv is the second largest company in NBFC sector. This company focused on lending, asset management, wealth management and insurance. Its current stock price is Rs.12854.75 (Closing price on 9th July 2021). Currently, its market capitalisation is ₹204567.21 Crore. Over the last one year, stock has earned 95.68% return. Bajaj finserv Ltd. has P/E ratio of 45.76 (Consolidated). If you think to invest for long term then Bajaj Fiserv ltd is a better choice to earn higher return.
- INDUSIND BANK LTD:- This bank was founded in 1994. Indusind bank ltd ranks 5th out of 21 companies in private sector banks. Indusind bank has out performed both in sector by 38.48% and Sensex by 45.41%. Presently, its market capitalisation is ₹80474.42 Crore. It has PE ratio of 27.47 (Consolidated). Over the last one year, stock of Indusind bank has given return of 86.86%. Currently stock is trading at ₹1039.95 (Closing price on 9th July, 2021) and expected to give goods returns in future. For the last Financial Year, Indusind bank has net sales turnover is ₹28999 Crore.
| Stocks | Share Price (9th July, 2021) | Market Cap. (in INR) | PE Ratio | Stock Return (Last 1 Year) |
| BPCL | 456.90 | 99113.16 | 6.13 | 21.27% |
| Adani Ports | 728.30 | 148741.62 | 29.65 | 112.30% |
| HDFC Bank Ltd. | 1502 | 830113.21 | 26.68 | 33.52% |
| Bajaj Finserv | 12854.75 | 204567.21 | 45.76 | 95.68% |
| Indusind Bank | 1039.95 | 80474.42 | 27.47 | 86.86% |