3 ‘Unexciting’ Stocks Quietly Powering Huge Returns

Investors typically assume substantial gains primarily come from chasing mid-sized, small-sized, or micro-sized companies. Although this belief has some merit, the reality is a handful of seemingly “unexciting” large-cap corporations are also delivering impressive returns.

A closer inspection of market-cap-based Nifty indices reveals that the large-cap segment significantly outpaced both small and micro-cap segments over the past year. Specifically, the Nifty 50 increased by 4.61%, whereas the Nifty Smallcap 100 rose merely 1.75%, and the Nifty Microcap 250 grew only 1.61%. Large-cap companies proved their strength during the turbulent market conditions of last year, not only safeguarding investor capital but also delivering superior returns compared to smaller segments.

Why did this happen?

Many overlook the fact that certain large-cap companies are also achieving rapid growth in revenue and profitability. These corporations may appear lackluster, but operationally, they’re agile and dynamic.

This piece highlights three “unexciting” large-cap stocks that have recently demonstrated extraordinary revenue expansion, reinforcing the idea that substantial growth and returns needn’t always involve riskier smaller companies.

1. Bajaj Finance Limited (BAJAJFINANCE)

Bajaj Finance is a prominent financial services giant in India, providing various lending solutions for urban and rural clients, including consumer, SME, commercial, and rural finance.

With a market value of ₹5,78,861 Crore (as of July 4, 2025), Bajaj Finance’s stock price has climbed by 29.73% in the past year, clearly marking it as a major large-cap entity.

But does large-cap mean dull?

Not in this case. Bajaj Finance reported a remarkable revenue increase of 26.76%, surging from ₹54,972 crore in FY24 to ₹69,684 crore in FY25. Its net earnings rose 16%, climbing from ₹14,451 crore in FY24 to ₹16,779 crore in FY25. However, higher credit costs slightly suppressed profit growth, causing Return on Equity (ROE) to decline marginally from 22.1% to 19% during the same period. Additionally, net non-performing assets (NPAs) rose slightly from 0.37% to 0.44%.

Operationally, Net Interest Income (NII) surged 23%, increasing from ₹29,582 crore to ₹36,393 crore. Management remains optimistic, expecting customer acquisition of 1.4 to 1.6 crore in FY26, increased profitability, and sustained ROE between 19% to 20%. Moreover, the company aims to integrate AI across segments, targeting transformation into a FINAI entity by 2028.

Currently, Bajaj Finance trades at a PE ratio of 34.8x, below its historical 10-year median of 43.8x but higher than the industry average of 25.8x.

2. ICICI Bank Limited (ICICIBANK)

ICICI Bank, India’s second-largest private bank by market value, provides extensive financial services across retail, SME, and corporate segments.

With a market cap of ₹10,29,578 crore and a share price of ₹1,443, ICICI Bank stock appreciated 17% over the last year, reinforcing its prominence among large-caps.

Is this large-cap uninspiring? Absolutely not.

The bank recorded robust revenue growth of 17%, rising from ₹1,59,516 crore to ₹1,86,331 crore. Net profits grew by 15%, from ₹46,081 crore to ₹54,569 crore, indicating strong financial health. However, ROE marginally reduced from 19% in FY24 to 18% in FY25.

Operationally, ICICI Bank’s NII increased by 9.2%, reaching ₹81,165 crore, while core operating profit grew 12.5% to ₹65,396 crore. Importantly, the bank successfully reduced its NPAs from 0.42% to 0.39%.

Management anticipates near-term growth to moderate due to decreasing interest rates, as commercial banks typically experience short-term margin compression under such conditions.

ICICI Bank is currently valued at a PE ratio of 20.2x, roughly aligned with its historical median of 19.6x but notably above the industry’s 13.6x.

3. Bharti Airtel Limited (BHARTIARTL)

Bharti Airtel is an international telecom giant, operating across India, Africa, Sri Lanka, and Bangladesh. Its offerings include mobile services, broadband, DTH, and recently financial services.

With a current valuation of ₹12,10,376 crore and a stock price of ₹2,017, Airtel’s stock surged an impressive 41.1% over the past year.

Clearly, this large-cap isn’t tedious.

The company’s revenue expanded by 15%, rising from ₹1,49,982 crore in FY24 to ₹1,72,985 crore in FY25. Even more notable was its 133% surge in net profit, dramatically increasing from ₹8,558 crore to ₹37,481 crore in a single fiscal year.

In FY25, Airtel added 13.5 crore new subscribers. The management indicates that capital expenditures will decrease as rural expansion concludes, allowing for flexible capital allocation toward debt management, dividends, buybacks, and new investments.

Interestingly, Airtel has partnered with Bajaj Finance, potentially accelerating its finance segment.

Currently, Airtel’s stock trades at a PE ratio of 43.6x, significantly below its 10-year median of 62x, yet aligned with the industry’s average.

Conclusion

Still think large-caps can’t provide exciting returns? Reconsider. Select large-cap companies can deliver substantial returns without the high risks associated with smaller entities. These robust businesses are quietly generating significant profits and growth, deserving a closer look from investors seeking stable yet rewarding opportunities.