Introduction

There are different caps in the stock market like small, middle, and large. But do you know what is the undervalued large-cap in the market? So let’s see the Top 4 undervalued large cap stocks in India 2021 in this article.

The top 4 undervalued large cap stocks in India 2021 are:

Banking sector- HDFC Bank

The back started in 1994, HDFC Bank is Indians one of the large cap private bank with a current market cap of 8,00,000+ crore. Last year HDFC bank saw a big change in leadership where Aditya Puri took retirement after successfully leading the bank for almost 26 years. Over the past few months, HDFC bank has been struggling for 2 major reasons

– After corona hits the market, there is an increase in NPA.

– Due to multiple technical outages on its website, that RBI banned HDFC bank from issuing new credit cards in Dec 2020 in which HDFC bank was the leader.

However, HDFC bank being the leader will make a strong come back. If you are confident about India’s growth journey then you can defiantly consider the few good backing stocks in your portfolio. The backing sector was underperforming in last few months and it is having a direct relationship with the Nifty index.

In the last 5 years, the share has jumped from around 143%. However, in the last 6 months, there is a fall in the share price. So HDFC bank is slightly underperforming in the past few months. The current price of the share is Rs. 1500, HDFC is trading at a PE of 25.

HDFCBANK Top 4 undervalued large cap stocks in India 2021

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Infrastructure Sector – Larsen and Turbo

Established in 1938 by two Danish engineers, L&T is a major technology, engineering, construction, manufacturing, IT, and financial services conglomerate. For example, in construction, its business includes the construction of the building, factories, heavy civil infrastructure, and smart cities, etc. It also provides end-to-end services for hydrocarbon engineering, power, heavy engineering, defense, ship building, metro, etc. As of today, L&T has a market cap of Rs. 2.2 Lakh Cr. If you look at their future growth, the Indian government has to focus a lot on building the infrastructure of the country including highways, smart cities, manufacturing facilities, bridges, ports etc. It would play a key role in building the infrastructure of our country.

Now if you look at the share price, L&T has given a 63% return in the last 5 years. However, the share has been range-bound in the last six months. The current price of the stock is Rs. 1650, L&T is trading at the PE of 15.

LT Top 4 undervalued large cap stocks in India 2021

IT sector – HCL technology

Established in 1976 by Mr Shiv Nadar, HCL comes under the top 4 IT companies in India with a market cap of Rs.2.9 Lakh Cr. Currently, it is lead by Shiv Nadar’s daughter Roshini Nadar who is the chairman of HCL and leading the next phase of growth for HCL. If you consider Techology it is performing amazingly good in past years and the future is more of Technology stuffed. HCL is among the most preferred IT companies due to its low-cost structure, experience leadership, and presence all over the world.

If we look at the share price of HCL, there is a consistent increase in the share price of HCL in the last 5 years and has given a 184% return except for the fall due to Covid. The price of the stock is Rs. 1,100, HCL is having its PE of 25. If you compare the stocks with the peers then it is slightly underperforming in the few months.

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HCLTECH Top 4 undervalued large cap stocks in India 2021

Housing finance sector – HDFC limited 

It is established in 1977. HDFC (Housing Development Finance Corporation) in India. It is one more the largest finance corporation in India. The chairman of HDFC limited is Mr. Deepak Parekh who is one of the most prominent personality in the Indian corporate sector. If you look at the subsidiaries of HDFC limited, it has 21% shareholdings in HDFC bank, 49.95% in HDFC Life, 52.65% shareholdings in HDFC AMC and 49.98% shareholdings in HDFC ERGO. Now you can imagine how strong HDFC limited is. Its current market cap is 4.8 Lakh Rupees.

Now let’s look at the share price movement of the company. Since its inception, this stock has given a return of more than 12,000%. In the last 5 years, this share has given a 97% return. The share has given -5% in the last 6 month. At the current level of Rs.2700. It is trading at a PE ratio of 24.

HDFC Top 4 undervalued large cap stocks in India 2021

Conclusion

So these are the Top 4 undervalued large-cap stocks in India 2021. If you are thinking of long-term investing and want to invest in large-cap stock then you can count on the above-mentioned large cap. 

Happy Trading!!

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