Best MNC Stocks in India: Which Stock Has the Highest Return On Equity?
Best MNC Stocks in India: An Overview
BSE and NSE are India's two biggest stock exchanges. Between them, they list more than 5,000 companies open to the public. But not all of the companies on this list are Indian corporations or mostly Indian companies. This post will look at a list of the top foreign MNC stocks traded on Indian stock exchanges. Keep reading.
What is an MNC?
An MNC is a company that offers facilities and services to more than one country other than its home country. They have factories and offices in many different countries and are run globally from a central office, usually in their parent country. Please remember that a company only becomes an MNC if it sends goods to other countries to sell.
The main reason a company becomes an MNC is to get more customers and expand into more countries to make more money. These MNCs may change (or add to) their products and services in the countries where they operate to meet the needs and customs of customers. Also, these MNCs must follow the rules, regulations, and tax structures of the countries where they operate.
Advantages of Investing in MNC Stocks in India
Most of the MNCs listed in India are based in developed countries, serving as their global headquarters. These multinational corporations have access to better technology, a stable business model, a network advantage, a team of experienced managers, and, of course, bigger budgets. Since they have been in business for a long time, they know how to run a business well and build their reputation and brand. The business model and corporate governance of these MNCs are now clearer.
Taking all of these into account, foreign MNC stocks listed on Indian Stock Exchanges can be good investments for people who want to put their money into global brands with a good track record.
Best MNC Stocks in India
Here is a list of the MNC stocks that are traded on Indian stock exchanges, along with their industry, market capitalisation (in crores of rupees), and their last trading price at the time this article was written:
| S No | Company | Marketcap (Rs Cr) | Industry | Current Price (Rs) |
| 1 | ABB India Ltd. | 64,107 | Electric Equipment | 3027.85 |
| 2 | Procter & Gamble Hygiene & Health Care Ltd. | 45,322 | Household & Personal Products | 13992.70 |
| 3 | Abbott India Ltd. | 42,370 | Pharmaceuticals & Drugs | 19651.45 |
| 4 | Bosch Ltd. | 49,612 | Auto Ancillary | 16890.50 |
| 5 | Hindustan Unilever Ltd. | 5,77,483 | Household & Personal Products | 2457.50 |
| 6 | Nestle India Ltd. | 1,93,460 | Consumer Food | 20055.55 |
| 7 | Colgate-Palmolive (India) Ltd. | 42,899 | Household & Personal Products | 1581.05 |
| 8 | Castrol India Ltd. | 12,364 | Lubricants | 125.85 |
| 9 | Astrazeneca Pharma India Ltd. | 8,398 | Pharmaceuticals & Drugs | 3374.85 |
| 10. | Gillette India Ltd. | 16,856 | Household & Personal Products | 5126.25 |
(Data as of 15th November 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
A Brief about MNCs in the Indian Stock Market
ABB India Ltd.
ABB India Limited is a global tech company based in India. Robotics and Discrete Automation, Motion, Electrification Products, and Process Automation are the company's four business segments. Its Robotics and Discrete Automation segment offers robotics, machine, and factory automation solutions with added value.
Fundamentals*
Market Cap: ₹64,107 Cr
- P/E Ratio(TTM): 120.15
- Debt to Equity: 0.01
- ROE: 13.92%
- Face Value: 2
Procter & Gamble Hygiene & Health Care Ltd.
In the feminine care and health care businesses, Procter & Gamble Hygiene and Health Care Limited make and sells fast-moving consumer goods that are branded and packaged. Healthcare products and hygiene products are two of the company's business segments. In the Healthcare Products segment, there are creams and ointments, cough drops, and tablets. In the Hygiene Products segment, there are products for women's hygiene and other skin care products.
Fundamentals*
Market Cap: ₹45,322 Cr
- P/E Ratio(TTM): 88.54
- Debt to Equity: 0.01
- ROE: 79.31%
- Face Value: 10
Abbott India Ltd.
Abbott India Limited is a company in India that makes and sells medicines. The company has diagnostics, medical devices, nutrition products, and branded generic medicines in its portfolio. It offers products and services in many therapeutic areas, such as women's health, gastroenterology, central nervous system, metabolic, multi-specialty, vaccines, and consumer health.
Fundamentals*
Market Cap: ₹42,370 Cr
- P/E Ratio(TTM): 52.40
- Debt to Equity: 0.05
- ROE: 29.46%
- Face Value: 10
Bosch Ltd.
Bosch Limited is a company based in India that sells technology and services in the areas of mobility solutions, industrial technology, consumer goods, and energy and building technology. The Company's business segments are automotive products, consumer goods, and others. The Automotive Products segment comprises diesel systems, gas systems, and products and services for the aftermarket for cars.
Fundamentals*
Market Cap: ₹49,612 Cr
- P/E Ratio(TTM): 38.35
- Debt to Equity: 0.01
- ROE: 11.89%
- Face Value: 10
Hindustan Unilever Ltd.
Hindustan Unilever Limited is an India-based company that makes and sells consumer goods. Home care, which includes detergent bars, detergent powders, detergent liquids, scourers, water business, and purifiers business; beauty & personal Care, which includes oral care, skin care, soaps, hair care, deodorants, talcum powder, colour cosmetics, and salon services; food & refreshment, which includes staples, culinary products, tea, coffee, health food drinks, ice-cream, and frozen desserts etc.
Fundamentals*
Market Cap: ₹5,77,483 Cr
- P/E Ratio(TTM): 59.84
- Debt to Equity: 0.03
- ROE: 18.35%
- Face Value: 1
Nestle India Ltd.
Nestle India Limited is a company based in India. Its main business is making and selling food, milk products and nutrition, prepared dishes and cooking aids, powdered and liquid Beverages, and Confectionery are all types of products that the company sells. Its milk products and nutrition line include dairy whitener, condensed milk, milk that has been treated with ultra-high heat, yogurt, formula for mothers and babies, baby food, and nutrition for health care.
Fundamentals*
Market Cap: ₹ 1,93,460 Cr
- P/E Ratio(TTM): 89.36
- Debt to Equity: 0.12
- ROE: 104.53%
- Face Value: 10
Colgate-Palmolive (India) Ltd.
Colgate-Palmolive (India) Limited makes and sells toothpaste, toothpowder, toothbrushes, mouthwash, and other products used for personal care. It sells different items for personal care, like soaps, cosmetics, and toiletries. It sells toothpaste, toothbrushes, mouthwash, and rinses, among other things.
Fundamentals*
Market Cap: ₹ 42,899 Cr
- P/E Ratio(TTM): 40.33
- Debt to Equity: 0.05
- ROE: 74.35%
- Face Value: 1
Castrol India Ltd.
Castrol India Limited is in the business of making and selling lubricants for cars and factories and providing services related to these products. It sells a variety of fluids and oils for car engines, such as engine oils, axle lubricants, brake fluids, transmission fluids, and greases. It sells oil and fluids for motorcycles, like fluids for the engine, oil for the forks, and oil for the gears.
Fundamentals*
Market Cap: ₹ 12,364 Cr
- P/E Ratio(TTM): 15.25
- Debt to Equity: 0.00
- ROE: 49.55%
- Face Value: 5
Astrazeneca Pharma India Ltd.
The company AstraZeneca Pharma India Limited is in the business of biopharmaceuticals. The company's main goal is to find, develop, and sell prescription medicines. These medicines are mostly used to treat diseases in three therapy areas: oncology, cardiovascular, renal and metabolism, and respiratory. It also has services for clinical trials.
Fundamentals*
Market Cap: ₹ 8,398 Cr
- P/E Ratio(TTM): 91.12
- Debt to Equity: 0.01
- ROE: 12.73%
- Face Value: 2
Gillette India Ltd.
Gillette India Limited is an Indian company that makes and sells branded packaged fast-moving consumer goods in the grooming and oral care businesses. The company is split into segments. The grooming segment makes and sells shaving systems, cartridges, blades, toiletries, and parts. The oral care segment makes and sells toothbrushes and other oral care products.
Fundamentals*
Market Cap: ₹ 16,856 Cr
- P/E Ratio(TTM): 57.30
- Debt to Equity: 0.00
- ROE: 35.07%
- Face Value: 10
Conclusion
We looked at MNC stocks listed in India. Most MNCs are in industrialized nations, have solid businesses, and are well-known brands. Many commoners detest MNC firms with the growing trend of 'Vocal for local,' or using and popularising local products. This may have a long-term influence on MNCs.
This concludes our list of top foreign MNC stocks on Indian exchanges. Happy investing!
This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.
Can a company from outside India list on the Indian stock market?
India does have a way for a foreign company to list its shares on the Indian stock exchanges. This is done through Indian Depository Receipts (IDRs). It's like a GDR/ADR mechanism in reverse, and it lets companies whose shares are denominated in a foreign currency to list and trade those shares in the form of Indian rupee receipts.
Can a company from outside India own all of the shares in an Indian company?
The Indian Company's 100 percent of shares can be owned by a mix of foreign companies and/or foreign people. In India, private limited companies must have at least two shareholders. So, one business or person can't own all of an Indian Private Limited company's shares.
Why do companies from outside India come here?
Foreign companies set up factories in India because they can find cheap labour here. There are also other ways to cut costs. As a cost-cutting approach, businesses reduce safety standards in less-than-ideal working environments.