10 stocks that offered high yields.
In its report, Karvy offered a list of 10 stocks that offered high yields. It considered the stability of dividends as well while looking for stocks with that could continue to offer high dividend yields.
Castrol India: Dividend per Share (DPS) 6.6| Dividend Yields 3.2
During CY17, the company actively focused on distribution expansion which led to 1 percent market share gain to 21 percent in the automotive segment. Castrol has ended CY17 with highest ever sales volume, clocking 205 mn Litres, gaining most of it in the last Q4CY17.
Greaves Cotton Ltd: Dividend/share 5.2| Dividend Yield 4.4
Greaves Cotton Ltd. (GCL) is a leading diversified engineering company manufacturing machinery and equipment. Greaves’ cost leadership enables it to be a major source of 3-W auto engines in India with partnerships over 35 auto manufacturers.
Greaves products for Agri and Auxiliary power segment crossed 3 mn pump sets and 1 mn generator sets mark recently.
Hero MotoCorp Ltd: Dividend/Share 102.2| Dividend Yield 2.8
Hero Moto Corp Ltd manufactures 2-wheelers predominantly catering to the motorcycle segment with 51 percent domestic market share. Hero is continually expanding its presence across various countries like Colombia, Bangladesh and also across African, Middle East, Asian and American countries.
In addition to this, the company has indicated a capex of Rs. 25 bn to be deployed over the next two years to ramp up existing facilities and also for a new facility at Andhra Pradesh taking the capacity to 10 mn units from the current capacity of ~9.0 mn units.
HPCL: Dividend/share 16.7| Dividend Yield 4.7
Hindustan Petroleum Corporation Ltd, a Fortune 500 company, is one of the major integrated oil refining and marketing companies in India.
The company operates through two coastal refineries, one at Mumbai (West Coast) of 6.5 million Metric Tonnes per annum (MMTPA) and the other at Visakhapatnam (East Coast) with a capacity of 8.3 MMTPA.
In the decade ending FY17, earnings grew by 19.7 percent CAGR and RoCE reached 21.2 percent by end of FY17. The Government of India as a part of fiscal management divested its 51.11 percent stake in HPCL to ONGC for Rs. 369 bn for which ONGC raised debt from the market.
Indiabulls Housing Finance: Dividend/share 52.8| Dividend Yield 4.1
Indiabulls Housing Finance Ltd (IBHF) is one of the leading housing finance company in India. The company has launched e-home loans, one of its kind in the home loan industry.
IBHF is one of the largest housing finance company with AUM of more than 1 tn. By Q3FY18, IBHF’s borrowings were balanced between debentures & securities (53 percent), bank loans (34 percent), sell downs (10 percent) and ECB’s (3 percent).
Infosys Ltd: Dividend/share 33.5| Dividend Yield 2.9
Infosys is India’s second-largest software services company, with USUSD 10.7 bn in revenues in FY17. The company is an end-to-end IT and BPO services provider, offering services ranging from software development, maintenance, technology and management consulting, testing, systems integration, engineering services, BPO and package implementation.
The Karnataka Bank Ltd: Dividend/share 4.5| Dividend Yield 3.8
Karnataka Bank is one of India’s region focused private sector bank. Major business area for the bank is the state of Karnataka. The bank was originally incorporated in the year 1924 at Mangalore.
The bank has crossed a business turnover of Rs.1.02 trillion in Q3FY18. The bank heavily relies on retail deposits (70.8 percent) and CASA standing at only 22.4 percent by Dec’17.
Power Finance Corp Ltd: Dividend/share 7.4| Dividend Yield 8.4
Power Finance Corporation Ltd (PFC) is a state-owned Navratna non-banking financial company engaged in the business of financing companies in power sector related activities, particularly generation activities.
PFC offers fund-based and non-fund-based financial assistance apart from offering consultancy and capital advisory services related to power sector financing. By 9MFY18, PFC’s borrowings distributed as bonds (89 percent), short-term loans (6 percent) and term loans (5 percent) of which 94 percent is rupee-denominated loans and rest is foreign currency loans.
PTC India Ltd: Dividend/share 4| Dividend Yield 4.3
PTC India is India’s largest power trading company with over 40 percent of market share in the power trading market. PTC has traded 327 billion units of power since inception and generated cumulative revenue of USUSD 16.7 bn over the years.
PTC thrives on the spread (Rs.0.48/unit). PTC operates two subsidiaries; PTC Financial Services which funds power projects predominantly renewable energy sector and PTC Energy owns and operates a portfolio of renewable energy projects totalling over 290MW.
VST Industries Ltd: Dividend/share 110| Dividend Yield 3.6
VST Industries an associate arm of British American Tobacco Plc (32.16 percent stake in the company) is a Hyderabad based cigarette manufacturing company incorporated in the year 1930. Company’s principal activities involve manufacturing and sale of cigarettes, unmanufactured and cut tobacco.
It enjoys a strong presence in Southern and Eastern India and is also increasing its presence in few northern states such as Uttar Pradesh and Bihar. VST is cash rich and has zero debt. It enjoys high returns on equity (36.9 percent), on asset (20.6 percent) and capital employed (54.4 percent).