Top groups ride the bull to hit new high

Written by Pradip Kumar Dey | Mumbai, Sep 29 | Updated: Sep 30 2007, 08:43am hrs
The sustained bull run and the recent rally witnessed by the markets in September has seen the top industry houses in India expand their wealth by 58.9% in a year. Significantly, during this period, from September 28, 2006 till date, the BSE Sensex increased 4,910.36 points or 39.66%.

The market capitalisation of the top 25 corporate houses of the country has touched Rs 14,66,537 from Rs 9,22,933 crore in the same period last year with UB, OP Jindal, Gaur Jaiprakash and the Anil Ambani group leading the pack.

The top three houses as on September 28, 2007 were the Mukesh Ambani group (Rs 4,05,103 crore), the Tatas (Rs 2,66,714 crore) and the Anil Ambani group (Rs 2,01,619 crore). Tatas had topped the charts last year with Rs 2,23,656 crore, followed by the Ambani brothersMukesh at Rs 2,03,098 crore and Anil at Rs 99,019 crore.

Only three housesBajaj, Videocon and Heroshowed a decline in M-cap this year from the last years levels.

Of the top performers, the M-cap of the UB group, which led the pack, increased 194.7% from Rs 11,333 crore on September 28, 2006 to touch Rs 33,403 crore on September 28, 2007. Among the group companies, significant increase in M-cap was seen in the case of United Spirits (184.9%).

In case of the OP Jindal group, the total M-cap of the seven units increased 186.4% to touch Rs 36,439 crore this year from Rs 12,721 crore as on June 28, 2006. Jindal Steel and Power (211.4%) saw the highest increase in M-cap among the group companies.

Similarly, the total M-cap of the two major companies of the Gaur Jaiprakash group increased 124.2% to Rs 24,440 crore from Rs 10,902 crore last year. Jaiprakash Associates at 128.2% saw higher increase in M-cap.

Total market capitalisation of the five Anil Ambani group companies jumped 103.6% to Rs 2,01,619 crore from Rs 99,019 crore last year. Among the group companies, Reliance Natural Resources (296%) witnessed the highest increase in M-cap, followed by Reliance Capital (181.5%).

The study has analysed 25 major industrial houses. The closing share prices have been computed from the official price lists published by Bombay Stock Exchange for the period between September 28, 2006 and September 28, 2007.

More than 50% increase in M-cap was seen in the case of the Mukesh Ambani group (99.5%), Aditya Birla Management Corporation (81.1%), Thapar Brij Mohan (72.5%), Excel Shroff (62.6%), K K Birla(60.2%) and Sterlite (56.1%).

M-cap of the five Sterlite group of companies increased from Rs 57,775 crore to Rs 90,188 crore.