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    Posted July 12, 2014 by
    chetan2014
    Location
    Kolkata, India

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    Companies Eclipsed Nifty’s Performance

     

    NSE Nifty has posted its biggest loss in 2014 yet there are few companies which have managed to beat the index by a huge margin. Where NSE Nifty declined by about 3.5% defensive sectors like Information Technology and FMCG sectors have eclipsed the returns provided by NSE Nifty. Here is the list of top three companies listed in Nifty that has provided the highest returns. The companies are:

    IDFC
    Sun Pharma
    ITC Ltd

    The stock price of IDFC, week over week, has increased hugely by 10% when the index gave a negative return of 3.5%. During the Union Budget of 2014, it was declared that new banks will be established based on few parameters. IDFC is the top choice for creating a bank in the next 2 years. This news has infused investor optimism prompting the share price of the company to jump. Fundamentally, the company has cemented its place in a new league all together. The PE ratio of the company is around 12x higher than the sector’s PE ratio of nearly 5x. The net profit of the company has remained consistent at nearly Rs 1800 crores while the current ratio and debt equity ratio is impressive at 3.52 and 2.97, respectively. Have a look at the stock chart given above.

    The stock price of Sun Pharma has time and again provided impressive returns on equity. The stock has returned nearly 4.83% compared to the negative returns of the Nifty. When the BSE Sensex toppled more than 500 points investor turned their confidence towards defensive stocks especially IT, pharmaceutical and FMCG. Within the pharmaceutical sector Sun Pharma has been the top performer. Currently, the company is trading at 47.92x times compared to the sector’s PE ratio of 26.69x times. The interest coverage ratio of the company is fantastic at 122.44 while it has practically no debt to equity ratio. Additionally, the profitability of the company is consistently increasing by Rs 500 crores but relatively is failing at the EPS front. Have a look at the stock chart given above.

    ITC, the leading company in the FMCG segment has provided returns of nearly 3.75% compared to the negative returns of the Nifty. The stock price of the company has shot from its low of Rs 316 to Rs 350. Investor confidence was restored after it was mentioned in the Union budget that tax levied on tobacco products and cigarettes will increase in the range of 11% - 72%. Recently the company touched its lowest point to Rs 316 but recovered within a fortnight to Rs 344. Even at this price the company is trading at PE ratio of 31.35x times compared to the sector’s PE ratio of 33.44x times.
    The cash reserves of the company are consistently increasing by 15% cumulatively while the profitability of ITC is increasing by a thousand crore year over year. The company has no debt equity ratio while the interest coverage ratio of the company is huge at 138.24. The stock chart of the company is above.

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