The billion dollar m-cap club swelled 41% in FY21: May this tribe increase!

The billion dollar m-cap club swelled 41% in FY21: May this tribe increase!

NEW DELHI: The rebound in domestic stocks from March lows has pushed the number of listed billion-dollar companies in India by 41 per cent to 301 in FY21 from 213 at the close of March, 2020.

Even if one makes a comparison of billion dollar companies today with those in the pre-pandemic period, the number has grown 18 per cent from over 255 as of December 31, 2019.

After a steep fall, CG Power multiplied its market capitalisation by 28 times or 2,701 per cent from a March 2020 market-cap of Rs 320 crore to Rs 8,964 crore, or roughly $1.24 billion, on Wednesday.

Tanla Platforms multiplied its market cap by 15.7 times (or 1,469 per cent) to Rs 11,115 crore ($1.53 billion) from Rs 708 crore as of March 31, 2020. Alok Industries, which was relisted in February 2020 after insolvency proceeds, has swelled its m-cap by 11.71 times (or 1,071 per cent) to Rs 10,154 crore ($1.4 billion) from Rs 867 crore as of FY20 end.

Intellect Design Arena, Hindustan Copper, Laurus Labs, APL Apollo Tubes and Dixon Technologies are some of the other companies that saw their m-caps surge 5-11 times during the pandemic year and become billion-dollar companies.

The combined m-cap of all the listed companies in India stood at Rs 204.50 lakh crore as on Friday, up 80.20 per cent from Rs 113.48 lakh crore as of March 31, 2020. It stood at Rs 155 lakh crore as of December 31, 2019.

Vaibhav Global (up 4.91 times), Tata Communications (4.79 times), Alkyl Amines Chemicals (4.5 times), Tata Elxsi (4.2 times), Tube Investments of India (4.17 times) and Deepak Nitrite (4.04 times) are some of the names that have multiplied their m-caps by over four times to become billion dollar firms in 2020.

For this study, the dollar-rupee exchange rate was kept at 72.51 apiece (i.e. one billion equals Rs 7,251 crore) and companies that were listed as of March 31, 2019, were only considered.

Meanwhile, blue chips such as ITC, Maruti Suzuki India, ONGC, IOC, Coal India, NTPC, IndusInd Bank and BPCL are yet to revisit their pre-Covid m-cap levels. In total, 578 stocks on BSE are yet to hit their December 2019 m-cap level, data compiled from corporate database AceEquty showed.

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