India’s economy is on the rise, and that’s attracting a lot of big businesses. With the country’s booming economy, globalization, and huge market potential, it’s no wonder they’re expanding their operations here. You’ve probably heard of multinational corporations (MNCs), right? They’re these companies that do business in multiple countries at once. Basically, they have operations and assets in countries other than their own. So, without further ado, here are the best popular foreign MNC stocks listed in India.
List of Best Foreign MNC Stocks listed in Indian Stock Exchanges!
Nestle India:
Nestle India, a subsidiary of the Swiss multinational Nestlé, holds a prominent position in India’s fast-moving consumer goods (FMCG) industry. With a wide range of food, beverage, chocolate, and confectionery products, the company has demonstrated a strong market presence. Nestle India is one of the Best Foreign MNC Stocks listed in Indian Stock Exchanges In the most recent quarter, Nestle India reported robust gross sales of Rs. 137,528.4 crores and a total income of Rs. 135,007.8 crores. Over the past three years, the company has achieved a commendable profit growth rate of 19.34 percent, maintaining a respectable return on equity (ROE) of 73.82 percent. Additionally, Nestle India has successfully reduced its debt by 18.30 crores, while maintaining a good return on capital employed (ROCE) of 105.83 percent.
Hindustan Unilever Limited:
Hindustan Unilever Limited (HUL) is indeed one of the largest fast-moving consumer goods (FMCG) companies in India. The company’s strong market presence is evident from the fact that five of its brands generate annual turnovers exceeding Rs. 2,000 crores each, while seven brands have turnovers exceeding Rs. 1,000 crores each. With a diverse portfolio of over 40 brands spanning across 12 different categories, HUL caters to a wide range of consumer needs. In terms of stock performance, HUL has delivered a solid return of 47.05 percent over a three-year period, outperforming the Nifty FMCG index, which provided a return of 23.73 percent during the same period. This indicates the company’s ability to generate value for its shareholders. Furthermore, HUL has demonstrated good cash flow management, as evidenced by a CFO/PAT (cash flow from operations/profit after tax) ratio of 1.08. This indicates that the company is generating sufficient cash flow from its operations to cover its profitability. Hindustan Unilever Limited is one the Top Foreign MNC Stocks listed in Indian Stock Exchanges
Bosch:
Bosch, a significant technology and service provider in India, specializes in various sectors, including Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The company operates the largest development facility outside of Germany in India, focusing on engineering and technology solutions. Bosch has demonstrated stable performance, with only 1.41 percent of trading sessions over the past 16 years showing intraday gains of more than 5 percent. With an interest coverage ratio of 90.39, the company’s financial position appears sound. Furthermore, Bosch has an efficient Cash Conversion Cycle of 26.04 days. The company is largely owned by its promoters, who hold 70.54 percent of the corporation.
Castrol India Limited:
Castrol India Limited, a manufacturer of automotive and industrial lubricants, holds the second-largest market share in the Indian lubricant market. The company has faced challenges in terms of profit growth, with a decrease of -5.55 percent over the past three years. Similar to Bosch, Castrol India has witnessed minimal intraday gains of more than 5 percent, occurring in only 1.51 percent of trading sessions in the last 13 years. However, the company maintains a respectable ROE of 58.12 percent and a high ROCE of 82.68 percent, indicating efficient capital utilization.
Britannia Industries:
Britannia Industries, with a rich history of over 100 years and annual revenues exceeding Rs. 9,000 crores, is a leading food company in India. The company faces potential margin risks due to price fluctuations of essential commodities such as wheat, edible oil, and sugar. As logistic inflation stabilizes, recent increases in sugar and edible oil prices should also normalize. Over a three-year period, Britannia Industries has provided a return of 8.0 percent, underperforming the Nifty FMCG index. However, the company maintains a solid interest coverage ratio of 30.28 and has achieved a good profit growth rate of 20.72 percent over the past three years. It is worth noting that the company has experienced a modest revenue growth rate of 9.30 percent during this period.