Nifty-6
Nifty-6 is the Part of Nifty-50.
Nifty-6 Represent 47% Weightage of Nifty. So who makes Nifty Recover or Fall?
You are right…… its the Nifty-6
This report is to understand why some companies are today in the Top-6 in Nifty? How have they grown their business? What are their margins and R-O-E today? How much Cagr gain they gave and most important question is why they gave such good returns? Can we receive whole investments back in Dividends? if Yes who has given?
And so many questions why? how? what should arise in our mind?
The given dashboard can easily explain What is Nifty-6.
Nifty-6 | ||
Weightage | ||
Industry | Security Name | Weightage (%) |
BANKS | HDFC Bank Ltd. | 10 |
COMPUTERS - SOFTWARE | Infosys Ltd. | 13 |
Tata Consultancy Services Ltd. | ||
DIVERSIFIED | Hindustan Unilever Ltd. | 4 |
FINANCE - HOUSING | Housing Development Finance Corporation Ltd. | 7 |
REFINERIES | Reliance Industries Ltd. | 14 |
Nifty-6 | 47 | |
NIfty-50 | 100 | |
NIfty-6 = NIfty-50 | ||
Reliance = NIfty-50 Bottom 22 |
Weightage | Reliance Ind = All Bottom 22 |
BPCL | CIPLA |
COALINDIA | HEROMOTOCO |
BAJAJ-AUTO | TATAMOTORS |
IOC | TATASTEEL |
M&M | GRASIM |
SHREECEM | GAIL |
ADANIPORTS | INDUSINDBK |
DRREDDY | HINDALCO |
TECHM | UPL |
JSWSTEEL | INFRATEL |
EICHERMOT | ZEEL |
Equity|Sales|Profits | |||
Security Name | Equity Capital (In Rs.) | Revenue | Profit |
Reliance Industries Ltd. | 6339 | 611645 | 39880 |
Tata Consultancy Services Ltd. | 375 | 159494 | 32447 |
HDFC Bank Ltd. | 548 | 147068 | 27254 |
Housing Development Finance Corporation Ltd. | 345 | 101725 | 22826 |
Infosys Ltd. | 2129 | 90791 | 16639 |
Hindustan Unilever Ltd. | 234 | 39136 | 6756 |
Nifty-6 | 9970 | 1149859 | 145802 |
NIfty-50 | 5332862 | 355942 | |
NIfty-6 = 20%NIfty-50 Sales & 50%Profitability | |||
Reliance = NIfty-50 Bottom 10 Profits |
1997 | Profit |
ONGC | 5000 |
IOCL | 2000 |
HUL | 1500 |
MTNL | 1300 |
SBI | 2200 |
NIfty-5 | 12000 |
Growth | ||||
Security Name | Sales Gr 2001 | Sales Gr 2010 | Profit Gr 2001 | Profit Gr 2010 |
HDFC Bank Ltd. | 28% | 22% | 29% | 25% |
Housing Development Finance Corporation Ltd. | 23% | 25% | 22% | 23% |
Infosys Ltd. | 22% | 15% | 19% | 11% |
Tata Consultancy Services Ltd. | 22% | 21% | 21% | 19% |
Reliance Industries Ltd. | 20% | 11% | 20% | 5% |
Hindustan Unilever Ltd. | 7% | 8% | 9% | 9% |
Nifty-6 | 20% | 17% | 20% | 15% |
NIfty-50 | 20% | 19% | 17% | 14% |
Quality | ||||
Security Name | Profit Margin | Debt Paying Capacity | R-O-PE | |
Tata Consultancy Services Ltd. | 20 | 46 | 87 | |
Housing Development Finance Corporation Ltd. | 22 | 66 | ||
HDFC Bank Ltd. | 17 | 50 | ||
Hindustan Unilever Ltd. | 17 | 72 | 31 | |
Infosys Ltd. | 18 | 111 | 8 | |
Reliance Industries Ltd. | 7 | 3 | 6 | |
Nifty-6 | 17 | 58 | 41 | |
Nifty-50 | 7 | 50 | 22 | |
Current Trend | ||||
Security Name | Cy Rev Gr | Cy Profit Gr | ||
Reliance Industries Ltd. | -44% | 31% | ||
HDFC Bank Ltd. | 7% | 22% | ||
Housing Development Finance Corporation Ltd. | 29% | 16% | ||
Infosys Ltd. | 9% | 12% | ||
Hindustan Unilever Ltd. | 4% | 6% | ||
Tata Consultancy Services Ltd. | 0% | -14% | ||
Nifty-6 | 1% | 12% | ||
Nifty-50 | -7% | -22% | ||
Return | ||||
Security Name | Cagr Price 2001 | Cagr Price 2010 | Div % | |
HDFC Bank Ltd. | 25% | 21% | 30 | |
Hindustan Unilever Ltd. | 14% | 25% | 71 | |
Housing Development Finance Corporation Ltd. | 21% | 14% | 22 | |
Infosys Ltd. | 31% | 11% | 61 | |
Reliance Industries Ltd. | 19% | 15% | 10 | |
Tata Consultancy Services Ltd. | 19% | 19% | 42 | |
Nifty-6 | 22% | 18% | 39 | |
NIfty-50 | 20% | 14% | 30 |
Hdfcbank: Cmp: 1103: [sales: 6.9% | Profit: 22%]
One of the best among the Indian banking Industry. This bank was not even in the TOP 15 companies a decade back and today is No#1 as per the free-float Market Cap. Very high growth, best margin and least NPA. Consistently giving good results for the last 2 decades. Far further than 2nd Biggest bank Icici Bank. India has transformed from a 0.5 trillion to 2.8 Trillion economy and the major Bank has cashed this Boom. HdfcBank was having revenue and profits of around 1500 cr and 200 cr during the year 2000. We may see HDFCBank enter the elite club companies of India with Profit of more than 1 lakh cr till 2030, 1st Indian bank to see this profit. Today Hdfcbank generates around 1.5 lakh cr revenue. Better managing sales along with professionally managed Gross NPA (around 1.3%) has helped Hdfcbank cross 25000 cr profit-making club where just 3-5 Indian Companies are there. Investment of 1 Lakh done 2 decades back is today 2.75 crore along with consistent dividends. All those holding for a long time, no need to worry as Economy if moving from 3 tr to 5 tr till 2025, majority of the banks with good management will be again able to cash the boom. We should remember Boom of China has helped the I&C Bank of China reach a Profit of around 3 lakh Cr. Today China has 4 Banks which are making Profits of more than 2 lakh Cr v/s our top private bank not even having 2 lakh cr sales. This difference should be filled in the coming 10-15 years. Post COVID Q1 results are declared with growth in revenue & net Profit at 6.9% & 22% respectively which was little better than expected. Should not forget that Moratorium announced by RBI between March to August has paused the real npa, real npa should be known in Q2. Yet Better managed NPA. Considering the current Q1 result and considering post moratorium data after August new buying can be done near 950 and this year target could be 1275. Some 10-15% Profits could be booked in the range of 1185 to 1275. Loan growth, 3rd party products, usage of debit and credit cards has been affected post corona. Effect of Corona depends on future developments. Should expect this bank to cross even profis of 2