Corporate biggies register record market cap growth

Written by Pradip Kumar Dey | Mumbai, Jun 30 | Updated: Jul 1 2007, 06:54am hrs
The Mahindra, UB and OP Jindal groups have put up a good show when it comes to market capitalisation between June 29, 2006 and June 29, 2007.

The M-cap of the Mahindra group, which posted the maximum increase, grew a hefty 198.5%from Rs 19,180 crore to Rs 57,249 crore.

The net profit of this group increased 33.7%, to Rs 1,247 crore during April-March 2007, from Rs 933 crore during April-March last year. Two new companiesTech Mahindra and Mahindra Forgingshave been added in the market capitalisation of the group. Among Mahindra group companies, Mahindra & Mahindra Financial Services registered a significant increase in M-cap at 34.1%.

For UB, the total M-cap of eight group companies increased 179.1%, to Rs 24,266 crore on June 29, 2007 from Rs 8,693 crore on June 29, 2006. Total net profit of the group increased 15.7%, to Rs 706 crore during April-March 2007. Among the UB group companies, United Spirits posted a significant 210.2% rise in M-cap.

Similarly, the total M-cap figure of seven major OP Jindal group companies increased 140.3%, to Rs 26,709 crore from Rs 11,116 crore. Net profit of the group increased 48.6%, to Rs 2,585 crore during 2006-07. Jindal Saw outperformed its group peers to post a whopping 191.5% increase in M-cap.

These figures are results of a analysis of 25 major industrial houses whose closing share prices were computed from the official price lists, published by the Bombay Stock Exchange, for the period of June 29, 2007 and June 29, 2006. During this period, the 30-share BSE Sensex increased 4488.35 points or 44.17%, to 14,650.51 on June 29, 2007, from the level of 10,162.16 on June 29, 2006.

Among other groups studied, more than 50% increase in M-cap was seen by Mukesh Ambanis Reliance group (68.7%), Anil Ambanis Reliance ADAG (117.6%), Aditya Birla group (93.8%), Shiv Nadar (52.2%), Jaiprakash (102.8%), Godrej (50.7%), BK Birla (91.8%), KK Birla (85.5%), Piramal (63.6%) and the RPG group (58.9%).

Among the 25 houses studied, the top five houses, according to M-cap as on June 29, 2007, are RIL group (Rs 2,98,064 crore), Tata (Rs 2,45,540 crore), Reliance ADAG (Rs 1,54,525 crore), Aditya Birla group (Rs 99,889 crore) and Sterlite (Rs 65,091 crore). But on June 29, 2006, the top five were Tata (Rs 1,91,967 crore), Reliance group (Rs 1,76,628 crore), Reliance ADAG (Rs 71,006 crore), Aditya Birla group (Rs 51,541 crore) and Sterlite (Rs 43,968 crore).