Volatility eats into top firms M-Cap

Written by Pradip Kumar Dey | Mumbai, Mar 15 | Updated: Mar 16 2008, 12:33pm hrs
The volatility in the stock markets has taken a serious toll on the big corporates wealth. With the turmoil, wealth of Indias top 25 industrial houses shrank 24.1% to Rs 14,69,343 crore on March 14, 2008, from Rs 19,35,508 crore on January 10, 2008the day when the Sensex clocked a record intra-day of 21,206.77. During this period, the Sensex lost 4821.56 points (-24%) to 15,760.52 on March 14, from 20,582.08 on January 10.

Among the 25 industrial houses, Bajaj, Videocon, Jaiprakash and Kalyani groups showed significant decline in terms of market capitalisation during the period. The market capitalisation of the Bajaj group, which registered the highest decline, fell 59.52% from Rs 35,687 crore on January 10 to Rs 14,444 crore on March 14. Among the Bajaj group companies, significant decrease in M-Cap was seen by Bajaj Holding & Investment (-69.3%). For, Videocon, the total M-Cap of four group companies decreased 54.48% to Rs 7,063 crore from Rs 15,515 crore. Among Videocon group companies, significant decrease in M-Cap was registered by Videocon Industries Ltd (-54.65%). Similarly, in the case of the the Jaiprakash group, the total M-Cap figure of two major companies decreased 44.92% to Rs 28,189 crore on from Rs 51,178 crore. Among the two firms, highest decrease in M-Cap was seen in the case of Jaiprakash Associates (-45.2%). The total market capitalisation of four Kalyani group companies decreased 40% to Rs 11,646 crore from Rs 19,415 crore. Among the Kalyani group companies, significant decrease in M-Cap was seen in the case of Kalyani Steel (-42.3%). Among other groups studied, more than 30% decrease in M-Cap was seen in the case of Mahindra (-30.2%), UB (-31.1%), Brij Mohan Thapr (-31.1%), Hinduja (-37%), BK Birla (-36.4%) and KK Birla (-30.7%).

The M-Cap of six Mahindra group companies decreased from Rs 52,224 crore to Rs 36,453 crore. Among the 25 houses studied, the top ten houses according to M-Cap as on March 14, 2008 are Mukesh Ambani, Anil Ambani, Tata, Aditya Birla Mgmt, Sterlite, OP Jindal, Mahindra, Essar, Shiv Nadar and Jaiprakash.

But on January 10, 2008, the top ten were Mukesh Ambani, Anil Ambani, Tata, Aditya Birla Mgmt, Sterlite, Jindal Om Prakash, Mahindra, Gaur Jaiprakash, Essar and UB. UB group was out from the elite group of 10 on March 14,2008. During the study period, UB group lost Rs 11,379 crore in its wealth. Only one house namely

Hero-M B Lall showed an increase in M-Cap on March 14, 2008 from the level of January 10, 2008.