With another year of highs and lows nearing its end, certain corporate houses have doubled their market wealth, while others have come close to losing half of theirs.
Shiv Nadar Group saw the sharpest rise in its market capitalisation at 97.24%, from Rs 44,238 crore at the end of 2012 to Rs 87,432 crore at the end of 2013. IT major HCL Technologies, which has seen its share price jump 101.24% in the current calendar year, has been the major contributor to the group’s market wealth with Rs 86,531 crore.
“The Shiv Nadar Group has come up the hard way. While currently, HCL Technologies is trading at lower valuations compared to the likes of Infosys,
Meanwhile, Tata Consultancy Services (TCS), again an IT major, contributed Rs 4.13 lakh crore to Tata Group’s total market wealth of Rs 6.69 lakh crore, helping the group cement its place as the most favoured corporate house on the Street.
IT companies have been attractive to fund managers and brokerages owing to the sharp depreciation in rupee seen during the year and relative earnings visibility. "The rupee’s slide acted only as a tail wind to the quarterly earnings of export-oriented sectors, the underlying demand trend is the bigger structural driver for earnings in these sectors,” said Lalit Nambiar, fund manager, UTI AMC.
TCS has gained 66.81% in year-to-date. Meanwhile, Tata Group’s market wealth has surged 35.27% in 2013.
Bharti Group, which was the third biggest corporate house in terms of m-cap at the end of December 2012, slipped to fifth spot in the pecking order. Although Bharti's m-cap grew 3.36% at Rs 1.61 lakh crore, Anil Agarwal’s Vedanta Group grew at an even faster pace of 29.93% to take over the third spot from Bharti. Vedanta’s market capitalisation stands at Rs 1.77 lakh crore at the close of 2013. Among other big names, Mukesh Ambani Group, saw its market wealth improve by just 6.84% to Rs 2.9 lakh crore. Share of the group’s flagship company Reliance Industries gained 5.79% in year-to-date.
Anil Ambani’s Group grew at an even slower pace of 1.82% to Rs 68,839 crore. Reliance Infrastructure and Reliance Power saw their market wealth erode by 16.61% and 23.30%, respectively. Meanwhile, Om Prakash Jindal Group saw its market capitalisation slip 42.86% in 2013 to R27,070 crore.
According to brokerages, investors ascribe certain premium to companies with strong promoters. “For instance, within the oil & gas sector, Reliance Industries is preferred,” added Udasi.