Omicron Proof Stocks: The year 2020 brought a catastrophic pandemic all over the world. The Covid-19 Pandemic! Like any other global medical emergency, the virus affected the population and the global economy as well. And now we have started to encounter a whole new variant of the virus in India, The Omicron Variant. If we look from an investing perspective, there is no doubt the fact that several segments might be negatively impacted because of this variant but on the other hand, several industries might be the least affected or not affected at all.
So today we are going to talk about 6 sectors with their top companies (based on market capitalization) which fall into this list of being the least affected by Omicron
1. IT-Software Sector
The first sector in the list is the IT-Software Sector. This sector would not be impacted by the new variant because this sector provides the facilities to work from home to its employees as their job description is such that it can be managed while staying away from the workplace. Apart from this, data shows that IT companies have grown exponentially since the outbreak of the virus.
Tata Consultancy Services Limited
As per market capital, the top IT sector company is Tata Consultancy Services Limited (TCS). This flagship company owned by the Tata Group provides IT, business, and consultancy solutions to its customers. The following table provides information regarding various parameters:
| P/E Ratio | 37.48 |
| Debt to Equity Ratio | 0.08 |
| Return on Equity (ROE) | 39.06% |
| Net Profit Margin (NPM) | 20.37% |
| 5-year Compounded Annual Sales Growth | 8.61% |
As of 5th January 2022, the share price of TCS closed at ₹ 3860.95. The share price of the company has increased by 26.48% in the last 1 year. In addition to this, the company has delivered a CAGR of 25.66% in the last 5 years.
2. Pharmaceuticals Sector
The Pharmaceuticals Sector is another sector that won’t be affected by the Omicron variant of the virus. Trends show that the sector has been on the rise ever since the virus broke out due to increased demand for medicines and medical equipment all over the world.
Sun Pharmaceuticals Industries Limited
Based on market capitalization, Sun Pharmaceuticals Industries Limited is the biggest of all. This company is involved in the manufacturing and marketing of branded and generic medicine formulations and medical APIs. The following table provides information regarding various financial parameters:
| P/E Ratio | 31.35 |
| Debt to Equity Ratio | 0.04 |
| Return on Equity (ROE) | 6.33% |
| Net Profit Margin (NPM) | 16.74% |
| 5-year Compounded Annual Sales Growth | 3.29% |
As of 5th January 5, 2022, the share price of Sun Pharmaceuticals is ₹835.10. The share price of the company has increased by 38.01% in the last 1 year. Also, the CAGR is calculated to be 25.29%in the last 5 Years.
3. Insurance Sector
Just like the pharma sector, the Insurance Sector is also the one that would not be been affected by the Omicron variant. On the contrary, the insurance sector has shown a steady rate of growth. This growth is because of the increased customer base of the insurance companies, especially during the covid era.
HDFC Life Insurance Company Limited
HDFC Life Insurance Company Limited is the biggest insurance company in the sector (as per market capitalization). The company provides a wide range of insurance products to both individual and group/corporate customers. The following are details on the various financial parameters:
| P/E Ratio | 112.17 |
| Debt to Equity Ratio | 0.07 |
| Return on Equity (ROE) | 17.63% |
| Net Profit Margin (NPM) | 1.90% |
| 5-year Compounded Annual Sales Growth | 31.56% |
As of 5th January 2022, the share price of HDFC Life Insurance is ₹ 653.55. The company has shown a decrease of 4.59% in the share price in the last 1 year. Apart from this, the CAGR of the last 3 years is 18.36%.
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4. FMCG Sector
Next on the list is the FMCG Sector. As the sector includes the companies that deal in daily usage consumer goods like personal care products, food products, whose demand cannot be easily hampered, this sector is unlikely to be impacted by the Omicron variant.
Hindustan Unilever Limited (HUL)
As per market capitalization, Hindustan Unilever Limited (HUL) is the largest FMCG company in the country. The company primarily deals in-home care, personal care, food, and refreshment products. The following table shows information in context to the various financial parameters:
| P/E Ratio | 64.19 |
| Debt to Equity Ratio | 0.02 |
| Return on Equity (ROE) | 29.23% |
| Net Profit Margin (NPM) | 17.38% |
| 5-year Compounded Annual Sales Growth | 7.88% |
The share price of HUL stands at ₹ 2415.80 as of 5th January 2022. The share price of the company has fallen by 3.15% in the last 1 year. In addition to this, the CAGR of the last 5 years is 22.82%.
5. Telecom Sector
The next name on the list is the Telecom Sector. Unlikely to be affected by the Omicron variant, this sector hasn’t shown any signs of downfall because of the Covid-19 virus in the past as well. This is because the number of subscribers of these telecom services would not go down due to the pandemic. Instead, the sector has shown early signs of growth because of an increased culture of work from home and rapid digitization.
Bharti Airtel Limited
Bharti Airtel is among the leading telecommunication companies in the country providing all sorts of telecom services ranging from mobile services to DTH and broadband services. The following are the details of the various financial ratios of the company:
| P/E Ratio | 37.48 |
| Debt to Equity Ratio | 0.08 |
| Return on Equity (ROE) | 39.06% |
| Net Profit Margin (NPM) | 20.37% |
| 5-year Compounded Annual Sales Growth | 8.61% |
The share price of Bharti Airtel stood at ₹700 on 5th January 2022. This share price has shown a rise of 33.17% in the last 1 year and a CAGR of 19.81% in the last 5 years.
6. Healthcare Sector
The Healthcare Sector and pharmaceutical sector go hand-in-hand in many situations. The healthcare sector is yet another sector whose demand has risen recently especially during the covid era. This sector has been on the path of growth for a long time and is expected to grow further amid the rising Omicron variant.
Apollo Hospitals Enterprise Limited
In terms of market capitalization, Apollo Hospitals Enterprise Limited is the top company in the healthcare sector. The first corporate hospital in India, Apollo Hospitals provides a wide range of healthcare services in every field. The following table shows the information regarding all the financial ratios of the company:
| P/E Ratio | 89.44 |
| Debt to Equity Ratio | 0.80 |
| Return on Equity (ROE) | 3.79% |
| Net Profit Margin (NPM) | 0.93% |
| 5-year Compounded Annual Sales Growth | 11.42% |
The share price of Apollo Hospitals closed at ₹4973.25 on 5th January 2022. The company showed a massive increase of 103.84% in the last year and the CAGR of the last 5 years is 32.64%
Conclusion
The above-stated sectors are some of the sectors that would be the least affected or not affected at all from the impact of the Omicron Variant. We hope that you found the provided information useful for your knowledge purposes and would help your future investment decisions.
