Margin Trade Funding (MTF)
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02 Apr, 2023
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A multinational corporation is a company that operates in multiple countries by establishing subsidiaries in various regions. The operations are coordinated from headquarters in the parent country. These companies possess assets and generate revenues on a global scale, and their stakeholders originate from different nations.
India has become an attractive destination for leading multinational corporations seeking investment opportunities due to its abundant population resources, a high potential workforce, continuous improvements in the ease of doing business, and a dynamic consumer-oriented market that readily embraces innovation and services.
The entry of these multinational companies into India brings numerous benefits, including the infusion of new technology, contributions to infrastructure development, capital inflows, and foreign exchange. These investments play a significant role in bolstering the country's economic well-being while also generating significant employment opportunities.
In this article, we have selected MNCs based on their operating profit margins and Earnings in FY23. All the stocks discussed in this article were selected from NSE MNC Index.
Top 10 MNCs having best Operating Profit Margins in FY23:
Company Name |
Sector/Industry |
CMP (Rs) |
M Cap (Rs in Cr) |
Operating Profit Margin % |
1-Year Return % |
IT |
3,875 |
33549 |
43% |
29% |
|
Pfizer |
Pharmaceuticals |
3,842 |
17590 |
33% |
-6% |
FMCG |
1,651 |
44865 |
30% |
12% |
|
Pharmaceuticals |
1,024 |
16832 |
28% |
-61% |
|
Credit Rating |
3,895 |
28655 |
26% |
25% |
|
Pharmaceuticals |
1,418 |
23988 |
25% |
-7% |
|
Pharmaceuticals |
23,133 |
49107 |
23% |
27% |
|
Leather - Footwear |
1,626 |
20901 |
23% |
-1% |
|
Mining Minerals |
281 |
104267 |
23% |
6% |
|
FMCG |
2,689 |
629843 |
23% |
29% |
If we observe the data, companies have maintained their operating profit margins above 23% during FY23.
Top 10 MNCs having good Earnings in FY23:
Company Name |
Sector/Industry |
CMP (Rs) |
M Cap (Rs in Cr) |
EPS (Times) |
1-Year Return % |
Electronics |
42,579 |
37480 |
495 |
28% |
|
Auto Ancillary |
18,970 |
55976 |
483 |
43% |
|
Pharmaceuticals |
23,133 |
49107 |
446 |
27% |
|
Diversified |
27,887 |
31391 |
400 |
42% |
|
Automobiles |
9,540 |
288002 |
272 |
25% |
|
FMCG |
22,799 |
219571 |
263 |
38% |
|
IT |
3,875 |
33549 |
209 |
29% |
|
Pharmaceuticals |
3,842 |
17590 |
136 |
-6% |
|
Bearings |
4,770 |
23597 |
106 |
50% |
|
FMCG |
5,015 |
120857 |
96 |
51% |
The establishment of offices of the best multinational companies has benefitted the country. India is conducive for new companies to set up their operations and for existing MNCs to expand their existing businesses. The best multinational companies boost the economic development of the country and are in turn provided with a rapidly expanding market for their products.
This is one of the ways to select any MNC company for investment. Prior to making investments in MNC stocks, it is crucial to assess some return ratios such as Return on Equity and Return on Capital Employed and so on. These metrics will help to assess whether the company's operational performance is effectively translating into profitability and how it manages its equity and debt obligations. Thru these ratios, investors can gain insight into how well the company is utilizing its resources and generating returns for its stakeholders. Investors must keep these stocks on their radar.
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