How have companies fared since 6K level

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How have companies fared since 6K level

Moneycontrol's analysis of the stock movement of the companies in both the 6k and 13k rally shows that most of these companies have given positive return. But their positive returns does not justify their strong fundamentals.

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If you were interested to know how the stocks which you had been invested in since the 6000 level of Sensex have fared now, then check out the table which is mentioned below.

Amongst all listed companies then when the Sensex was at 6k and now when Sensex is at 13k, around 54 companies are common, ie these companies were trading then and now as well.

The Sensex touched 6000 levels on February 11, 2000. It took the markets five long years to cross 1000 points and reach the 7000 level. But after crossing the 7000 level, markets gained speed and just took 16 months to cross 13000.

Moneycontrol's analysis of the stock movement of the companies in both the rallies( 6000 and 13000) shows that most of these companies have given positive return. But their positive returns does not justify their strong fundamentals.

For example, Gujarat Ambuja Cement  (went for a stock split on 3/6/3005 and 1:1 bonus share on 13/10/1999) grew by 49.89% in five years, ie between Feb 11, 2000 and June 21, 2005. The pharma major, DRL , (went for a stock split on 28/09/2001 and bonus issue on 31/05/2006) just grew by 3.48%, from Rs 348.75 in 2000 to Rs 360.88 in 2005. Blue Star (stock split on 12/05/2006) and is another company which has grown but not substantially. It beefed up by 84.46% between 2000 and 2005.

Alembic (went for bonus issue on 12/2/2004 and 12/3/2004) and Bajaj Hindustan Sugar (stock split on 19/06/2006) are few other companies that are sailing in the same boat of a positive return but not a robust one.

There are also companies that gave a negative return in the Sensex's five-year trade. Few of these companies are Alps Industries ( bonus issue on 2/5/2006), GV Films ( stock split on 5/01/2005), Navneet Publication ( bonus shares on 1/3/1996), and one of the biggies of the IT sector, Satyam Computer  (stock split on 12/7/2000 and bonus issue on 21/04/2006)

An interesting thing to note is that nearly 15 companies amongst the companies featured in the above-mentioned table, have ramped up more gains in the one-year period when Sensex moved from 7000 to 13000, than what they grew by between 2000-2005.

Lot of frontliners fall in this list. Blue Star's stock price which grew by 84.46% in 2000-2005, took just one year, 2005-2006 to grow by 145.09%. Exide Industries ( stock split 16/06/2006 and bonus issue on 25/04/2003) jumped from 92.21% to 140.16% in the above-mentioned period. DRL jumped from 3.48% to 108.21%, EIH ( stock split on 31/05/2006, bonus share on 28/06/1996, bonus issue on 31/05/2006)from 167.09% to 98.58%, Gujarat Ambuja Cement from 49.89% to 90.45% etc.

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