India Inc gives weak performance this FY

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India Inc gives weak performance this FY

Analysing the performance of companies, which were trading on the stock exchanges in both the financial years, it was seen that 76% of the total listed companies have seen a fall in their market cap in this FY as compared to the last.

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With the 2006-07 financial year soon coming to an end, we compare the performance of all listed companies in FY 2006-07 (prices taken between April 3, 2006 and March 26, 2007) with FY 2005-06 (prices taken between April 1, 2005 and March 31, 2006).

Analysing the performance of companies, which were trading on the stock exchanges in both the financial years, it was seen that 76% of the total listed companies have seen a fall in their market capitalization in this financial year as compared to the last. Out of 1626 companies, market capitalization of 1226 companies have taken a dip.

This data clearly suggests the weak performance of India inc's in FY06-07. The weakness, as per experts, can be attributed to factors like high inflation and interest rates. The event of 'budget', which always gives a much needed upside to the market, also did not seem to go very well with the investors. 

Prajay Engineering's market capitalization in the FY05-06 had grown by 1984.49%, while this financial saw a 83.04% growth.

Videocon Industries' market cap had beefed up 1118.39% in FY 05-06 and in this financial year it grew by just 4.93%.

Godrej Industries , one of the top leaders in the FMCG sector, also saw the same fate. Their marketcap in this year has grown by 58.11% and in FY 05-06 by 434.06%.

Reliance Capital's marketcap, this financial year, has fallen by 335.3% as compared to last year.

Titan Industries has seen its marketcap growing by just 0.19%, while last year there was 264.04% growth.

There are also companies that instead of even giving moderate growth have given negtaive growth in this financial year.

For example, Balrampur Chini , had given a positive marketcap growth of 182.87% last financial year, but this financial year saw the same company witnessing a negative retun of 66.47%.

To name few, companies like Cipla , Bajaj Auto are also sailing in the same boat. Cipla has seen a fall in their marketcap by 10.34%, while last financial year it grew by 154.69%.

Bajaj Auto's market cap grew by 152.05% in FY 05-06 and in FY 06-07 it fell by 11.05%.

Check out the table on the next page

By-Piyu Sen