The number of companies in India with a market cap of
$1bn and above has gone up to 63, as of July 14, from
41 a year ago. The number was 27 in April '03.
number of companies with $1bn in sales rose to 32 from
31 a year ago, with the addition of Tata Consultancy Services.
The number of companies with an annual net profit of $1bn
rose to five from four a year earlier. This exclusive
club includes Oil & Natural Gas Corporation (ONGC),
Reliance Industries (RIL), Steel Authority (a new entrant),
National Thermal Power Corporation and IndianOil (IOC).
new entrants in the $1-bn market cap club include banks
like the Bank of Baroda, the Union Bank of India, the
Bank of India, the Kotak Mahindra Bank, UTI Bank and IDBI.
While all these have more than doubled their market value,
Reliance Capital's market cap has gone up more than three
from these, the list includes Bharat Forge, ACC, Nicholas
Piramal, Hindustan Zinc, Container Corporation, IPCL and
Essar Oil among others. While the top ranking firms like
ONGC, RIL, IOC and ICICI Bank trade at 2-4 times their
annual revenue, the new entrants have a market cap to
sales multiple of over 7, or in some cases like Reliance
Capital, 17 times.
significant surge in mid-cap shares over the past six
months has resulted in the total market cap rising to
just under Rs19,00,000 crore or $437bn, an 80 per cent
rise in value in 12 months. The market
cap to gross domestic product (GDP) ratio is hovering
over 60 per cent, very close to the Asian average
of 64 per cent.