Want to invest in most profitable firms of FY22? Here is the list of top 10

India Inc reported over 50 per cent growth in consolidated net profit for the financial year ended March 31, while net sales jumped by 25 per cent on a year-on-year (YoY) basis. Data available with Ace Equity showed that the top 10 players contributed as much as 25 per cent and 33 per cent to the overall top line and bottom line, respectively, in the previous financial year. Here is the list of the top profitable companies of India.

1) Reliance Industries

Energy-to-telecom behemoth Reliance Industries emerged as the top player in terms of net profit. For the financial year ended March 31, the company posted a consolidated net profit of Rs 60,705 crore, up 23.56 per cent, against Rs 49,128 crore a year ago. On the other hand, net sales of the company increased 48 per cent year-on-year to Rs 721634 crore. Brokerage Motilal Oswal Financial Services is positive on RIL with a target price of Rs 2,935. Shares of the company traded 0.56 per cent down at Rs 2764 in the afternoon trade on June 6.

2) ONGC 

The oil and gas major is next on the list. The consolidated bottom line of the company grew 179 per cent YoY to Rs 45522 crore in FY22. On the other hand, net sales increased by nearly 48 per cent during the same period. Motilal Oswal also holds a ‘Buy’ rating on ONGC with a target price of Rs 213, indicating an upside of 38 per cent from the current market price.

3) Tata Steel

The company posted over a 436 per cent rise in net profit at Rs 40,153 crore in FY22 over Rs 7490.22 crore in FY21. Net sales increased by nearly 57 per cent YoY to Rs 2,42,326 crore. Centrum Broking is bullish on Tata Steel with a target price of Rs 1,492.

“We reduce our FY23 EBITDA by 11 per cent to Rs 43,600 crore to factor in a hit of 15 per cent export duty levied by the government on May 21, 2022 and higher coking coal prices. We keep our FY24 EBITDA unchanged. We arrive at the target price of Rs 1,492 (earlier Rs1,586), valuing India's business at 6.0 times (earlier 6.5 times) FY24E EV/EBITDA and Europe and others at 4 times FY24E EV/EBITDA,” the brokerage said in a report.

4) TCS

The IT major reported nearly 17 per cent growth in net sales at Rs 191754 for the year ended FY22. On the other hand, the net profit of the company increased by 18.18 per cent YoY to Rs 38,327 crore.

5) HDFC Bank

The private sector lender posted 19.54 per cent YoY growth in net profit at Rs 38052 crore for the year ended FY22. Net sales of the company grew by 5.74 per cent YoY to Rs 1,35,936 crore during the same period. Emkay Global Financial Services is positive on HDFC Bank with a target price of Rs 1,800.

“We believe that the proposed merger of HDFCL’s mortgage business will be RoE-accretive in the long run as cost benefits kick in, while merger uncertainties seem to be largely priced in at current valuations. Thus, we retain Buy on the stock given the reasonable upside to our target price,” the brokerage said.

6) State Bank of India

The consolidated bottom line of the country’s largest lender by assets jumped nearly 58 per cent YoY to Rs 35,373.88 crore in the previous financial year.
 
7) ICICI Bank

The private sector lender reported a profit of Rs 25110 crore in FY22, up 36.58 per cent YoY, against Rs 18,384 crore in FY21.

8) Indian Oil Corporation

The oil retailer posted a 16.01 per cent rise in net profit at Rs 25,102.23 crore in FY22. On the other hand, net sales grew by 41.61 per cent YoY to Rs 7,36,730.84 crore during the same period.

9) HDFC

Mortgage lender Housing Development Finance Corporation posted a nearly 21 per cent growth in net profit at Rs 22,594.69 crore in FY22. However, net sales grew marginally by 1.10 per cent to Rs 50,084.84 crore.

10) Infosys

With a consolidated net profit of Rs 22,110 crore, IT major Infosys is the tenth player in the company. Net profit of the company grew 14.26 per cent in FY22 on 21.07 per cent growth in net sales which stood at Rs 121641 crore.