Market capitalisation of 45 NBFCs rose by 12.2%

Pradip kumar Dey
FE Research Bureau

THE aggregate market capitalisation (the market price multiplied by the number of shares) of traded scrips of the selected 45 NBFCs have increased by 12.2 per cent to Rs 11,329 crore in August 24, 2001 from the level of Rs 10,094 crore on March 30, 2001. Market capitalisation reveals the rating of shares of a company on the stock exchange. Here, 45 NBFCs have been ranked according to their market capitalisation during August 24, 2001 and March 30, 2001. The share prices have been computed from the official price lists published by The Stock Exchange, Mumbai (BSE). Friday’s closing quotations have been considered for the study. The market capitalisation of the top five NBFCs increased by 17.3 per cent to Rs 10,006 crore on August 24, 2001 from Rs 8,528 crore as on March 30, 2001. The top five companies in terms of market capitalisation in the descending order on August 24, 2001 are HDFC, Reliance Capital, DSP Merrill Lynch, LIC Housing Finance and Kotak Mahindra.

Meanwhile, the top five in market capitalisation, in descending order, in March 2001 are HDFC, Reliance Capital, DSP Merrill Lynch, Kotak Mahindra and Hinduja TMT. HDFC, Reliance Capital, DSP Merrill Lynch and Kotak Mahindra retained a place among the top five in both the years. LIC Housing Finance was ranked sixth in the March 2001 evaluation, but obtained the fourth position on August 24, 2001.

However, market capitalisation rank of HDFC, Reliance Capital and DSP Merrill Lynch were the same in both time years.

Of the top five NBFCs on August 24, 2001, positive rate of growth of market capitalisation was recorded in the case of HDFC (28.9 per cent) and LIC Housing Finance (26.6 per cent).

The bottom five, in ascending order, in terms of market capitalisation on August 24, 2001 are IIT Capital (Rs 0.72 crore),KJMC Fin (Rs 0.95 crore), Lloyds Fin (Rs 1.89 crore), Apple Credit (Rs 2.02 crore) and Pal Credit (Rs 2.59 crore). On the other hand, the bottom five companies according to market capitalisation in March 2001 are Lloyds Fin (Rs 1.89 crore), Apple Credit (Rs 1.89 crore), KJMC Fin (Rs 2.04 crore), Pl Credit (Rs 2.27 crore) and IIT Capital (Rs 3.54 crore).

Market capitalisation of 16 NBFCs moved down in rankings on August 24, 2001 from March 30, 2001. Prominent among these are Hinduja TMT (fifth in March 2001 to seventh on August 24, 2001), Ceat Fin (14th to 17th), Khandwala Securities (11th to 18th), Indian Securities (31st to 39th) and IIT Capital (41st to 45th).

The shares of the top five showed an increase in aggregate market capitalisation from 84.5 per cent in March 2001 to 88.3 per cent on August 24, 2001.