Stocks of multi-national corporations or MNC Companies like HUL and Nestle have created tremendous wealth for patient investors over the last few decades.
HUL Share Price
From a stock price of Rs. 210 on 1st April 2001 the stock price of HUL has risen to touch Rs. 2400 levels in April 2021.
Nestle Share Price
Similarly, the stock of Nestle has risen from Rs. 3680 levels on 1st April 2001 to touch Rs. 17100 levels in April 2021. If we also factor in the numerous dividends and bonuses issues by these companies the actual returns given by these stocks would be much higher.
Incredible isn’t it?
There are many such wealth creation stories associated with stocks of top MNC companies in India.
In this article let’s take a detailed look at:
What is an MNC?
What are the different types of MNCs?
Which are the top MNC companies in India?
Key things to keep in mind while investing in the stocks of top MNC companies in India
What is an MNC?
An MNC or a multi-national corporation refers to a company that has operations in several countries at the same time. MNC’s include those companies which have facilities and operations in at least one nation outside their domestic nation.
While some MNC’s operate with a centralized model with a strong presence in their home country and manufacturing units located across different countries, some prefer to operate on a transnational model where the MNC’s subsidiary companies operate independently in their respective countries.
Which are the top MNC companies in India?
HUL
Share price on 20/04/21 – Rs. 2393
Hindustan Unilever Ltd (HUL) is a subsidiary of Unilever and India\’s largest FMCG company with product offerings in home and personal care, foods, and refreshments. The company\’s product portfolio includes cosmetics, detergents, soaps, packaged tea, water purifier, ice creams, sauces, coffee, and bread. Lakme, Sunsilk, Pepsodent, Ponds, Lux, and Surf Excel are some of the popular brands offered by the company.
Nestle India
Share price on 20/04/21 – Rs. 17086
Nestle India Ltd is the subsidiary of Nestle S.A. of Switzerland and one biggest FMCG players in the country offering a wide variety of products including milk and milk products, nutrition products, baby food, beverages, chocolates, and confectionery.
Some of the company’s popular products include Nescafe, Maggi, Everyday Dairy Whitener, Milky bar, Kit Kat, etc. Nestle India has a well-established distribution network across both rural and urban India and many of its products have a strong brand recall value.
GMM Pfaudler
Share price on 20/04/21 – Rs.4089
GMM Pfaudler is a market leader in the glass-lined equipment industry with over 60% market share. The company specializes in the manufacturing of glass-lined reactors as well as non-glass-lined equipment and caters mainly to companies from the pharmaceutical and chemical sector.
Over the years the company has diversified its product portfolio to include Engineered Systems, Mixing Systems, Filtration & Drying Equipment, and Tailor-Made Process Equipment.
TCS
Share price on 20/04/21 – Rs. 3144
Headquartered in Mumbai, Tata Consultancy Services Ltd. (TCS) is a leading IT services consulting and business solutions provider globally and a part of the Tata Group. The company caters to clients from multiple industry verticals across Asia, America, Europe, Middle-east and Asia and its service offering include consulting and service integration, digital transformation, and cognitive business operations.
Infosys
Share price on 20/04/21 – Rs. 1350
Incorporated in the year 1981, Infosys Ltd is a global technology services firm with a presence in 220 locations across 46 countries. The company offers an end-to-end technological business solution to global clients including technical consulting, design development, systems integration package-enabled consulting and implementation, and infrastructure management services. Its wholly-owned subsidiary, Infosys BPO offers business process management services.
Britannia
Share price on 20/04/21 – Rs. 3730
Founded in the year 1918, Britannia Industries is one of India\’s leading FMCG companies offering a wide variety of packaged foods such as biscuits, rusk, bread, cakes, and dairy products. Some of the most popular brands offered by the company include biscuits like Tiger, Marie, and Nutrichoice, bread-like Britannia Whole Wheat bread. Britannia’s global footprint covers over 60 countries.
Honeywell Automation
Share price on 20/04/21 – Rs. 44312
Honeywell Automation India is the number one player in the process control equipment and electronics-instrumentation industry in the country. HAIL is leading provider of integrated automation and software solution that improves productivity-enhancing comfort and ensuring the safety and security to homes and business premises. The company\’s main products are distributed control systems building control systems and smart transmitters. The Company is engaged primarily in the business of Automation & Control systems on a turnkey basis and otherwise.
Bayer CropScience
Share price on 20/04/21 – Rs. 5213
A subsidiary of Bayer Germany, Bayer CropScience is one of the world\’s top players in the field of crop protection, pest control, seeds, and plant biotechnology. The company offers a wide range of solutions for both agriculture and non-agricultural applications and its product offerings include insecticides, fungicides, products for seed treatment, and herbicides.
Whirlpool of India
Share price on 20/04/21 – Rs. 2152
A subsidiary of Whirlpool Corporation, Whirlpool of India Ltd. is one of the leading manufacturers and marketers of major home appliances in the country such as refrigerators, washing machines, air conditioners, microwave ovens and caters to both domestic and international markets. Whirlpool of India also provides product development and procurement services to its parent company as well as other group companies.
Bosch
Share price on 20/04/21 – Rs. 13417
Bosch Ltd. is a leading player in the field of Automotive Technology, Industrial Technology, Consumer Goods, and Building Technology. The company offers a diverse product portfolio ranging from fuel injection systems, aftermarket products, and electricals for the auto sector, electric power tools to special purpose machines packaging machines, and security systems. Headquartered in Bengaluru, the company has state-of-the-art manufacturing facilities located across Bangalore, Nashik, Jaipur, and Goa.
Disclaimer: Stocks mentioned above are just for your information and should not be considered as a recommendation to buy or sell.
Key things to keep in mind while investing in the stocks of MNC companies in India
As you can see from the above list, many of these stocks mentioned above are leading players or market leaders in the respective segments where they operate. Most of them have a good track record of wealth creation for investors. However, in today’s world of constantly changing dynamics, past performance of a stock should never be considered as the only reason for investment.
Before investing in the top MNC companies in India, one should look at some key factors like its debt ratio, consistency in earnings growth over a long-term period (5 years or more), scalability of its business models, dividend history, and management pedigree.
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