Stocks

Market-cap of India Inc’s top groups soars with the market

Kumar Shankar Roy BL Research Bureau | Updated on February 06, 2021

46 business houses out-perform Sensex’s 90% gains from March 2020 lows

With the Sensex closing convincingly above the 50,000-point mark, it is interesting to see which business houses created the maximum wealth for shareholders.

A study of over 60 business groups, with least ₹10,000-crore market capitalisation, shows that their combined m-cap has more than doubled to ₹108-lakh crore, riding as they did the rip-roaring rally in the stock market from the Covid nadirs less than 11 months ago.

In this march, as many as 46 groups (70 per cent) out-performed the blue-chip index, the Sensex, in terms of the rise from the market lows. The benchmark has gained 90 per cent between March 24, 2020 and February 5, 2021.

 

Biggest contributors

No surprises for guessing who stole the march. The ₹56-lakh crore m-cap addition for the period is led by business houses such as the Tatas (₹8.7-lakh crore m-cap), HDFC group (₹7.6-lakh crore), Reliance-Mukesh Ambani group (₹6.7-lakh crore), Bajaj group (₹3.7- lakh crore) and the Adanis (₹3.1 lakh crore).

For the Tata Group, TCS led the charge with ₹5.2-lakh-crore m-cap rise, followed by Tata Motors (₹81,303 crore) and Titan (₹61,608 crore). HDFC Group wealth was driven by the veterans — HDFC Bank (₹4.5-lakh crore) and HDFC (₹2.3-lakh crore). Reliance-Mukesh Ambani Group’s m-cap rise was mainly by Reliance Industries (₹6.6-lakh crore). Bajaj Group’s wealth grew on the back of Bajaj Finance (₹1.8-lakh crore) and Bajaj Finserv (₹83, 066 crore). Adani Group’s m-cap jump was supported by Adani Green (₹1.46-lakh crore) and Adani Ports (₹68,054 crore).

Pecking order

In the top-10, only Adani and Bharti groups saw major change in ranks in this period. The wealth created by the Adani Group, led by billionaire Gautam Adani, saw the business house jump several notches since March 2020 lows.

It has moved up from the 11th to the 5th rank thanks to the massive spike in stocks such as Adani Green, Adani Enterprises and Adani Transmission. However, Bharti Group slipped from the 5th to the 9th rank as the over-hang of Adjusted Gross Revenue (AGR) dues as well competition from R-Jio dampened sentiment around the Airtel stock.

Outside the top-10 club, rank changes were witnessed in cases such as Hinduja Group moving from 29th to the 16th spot thanks to the jump in Ashok Leyland and IndusInd Bank shares, and JSW Group moving from 22nd to 17th rank on account of gains clocked by JSW Holdings and JSW Steel.

The fastest and slowest

In terms of fastest wealth addition (in percentage terms), the list is led by Adani Group (272 per cent), Hinduja Group (256 per cent), Raunaq Singh Group (235 per cent; thanks to the spike in Apollo Tyres shares), and Naveen Jindal Group (231 per cent; on account of the sharp jump in Jindal Steel stock) All these groups have seen their respective m-cap quadruple from March 2020 lows.

Among the conglomerates with slowest wealth rise are Dabur Group (30 per cent), Torrent Group (41 per cent), UB Group and Nusli Wadia group (54 per cent each).

Published on February 06, 2021

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