Tag: m-cap

  • Indias First Stock With Market Value Of $1 Trillion By 2032; These 3 Companies Are Top Contenders, Says ICICI Securities

    Indias First Stock With Market Value Of $1 Trillion By 2032; These 3 Companies Are Top Contenders, Says ICICI Securities


    New Delhi: India is expected to get its first company with market value of USD by 2032, Brokerage house ICICI Securities has said.

    “Our calculations suggest that India’s first USD 1trn market cap (mcap) stock could emerge by 2032. The macro framework is based on the assumption of reaching peak corporate profitability (~7% ‘PAT/GDP’ ratio) in the listed space driven by gradual advancement towards peak GDP growth of ~9%. Other key assumptions include – ratio of the largest stock’s mcap to aggregate mcap sustaining at long-term average of 5-6% and no re-rating in P/E ratios from current levels. Micro-level verification is done by screening stocks that have exhibited historical PAT growths in the vicinity of the hurdle rate required to reach a USD 1trn mcap by 2032, assuming no P/E re-rating,” ICICI Securities said in its report. 

    The Brokerage house said that HDFC Bank is the most likely stock with a hurdle rate of ~25.5%. RIL could make it if its profit growth trajectory jumps up to ~21%, while Bajaj Finance will need to maintain its past growth rate of ~35%-40% over the next decade to reach USD 1 trillion m-cap.

    “HDFC Bank’s hurdle rate of ~25.5% against its historical profit growth trajectory of ~20% makes the stock a prime contender with scope for valuation re-rating. RIL could make it if its longerterm profit growth trajectory jumps to ~21%. Bajaj Finance will need to maintain its past growth rate of ~35%-40% over the next decade to reach the USD 1trn mcap mark, assuming no P/E re-rating,” said ICICI Securities.

    The brokerage firm said that USD 1 trillion stock will herald deepening of Indian markets and significantly improve large free floats available for investors.

    The largest stock’s mcap stood at USD 10bn in 2001 before scaling up to reach USD 100bn by 2007 under the influence of a bull market driven by a notable lift in the corporate profit cycle – expressed in terms of an all-time high PAT/GDP ratio of ~7%. Consequently, the mcap to GDP ratio hit the all-time high of ~160%. 

    Surprisingly, the peak P/E ratio of the market, although high, was not outlandish at ~21x in 2007, thereby showcasing the illusory nature of point in time P/E ratios and the fundamental groundings of CAPE ratio (cyclically adjusted P/E ratio). The CAPE during 2007 peak stood at an outlandish 35x as compared to a point in time forward P/E of 20x, the report added.



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  • Nine of Top-10 Firms Lose Rs 1.87 Trillion in Mcap

    Nine of Top-10 Firms Lose Rs 1.87 Trillion in Mcap


    Last Updated: February 26, 2023, 13:14 IST

    Nine of 10 most-valued firms saw an erosion of Rs 1,87,808.26 crore in market valuation last week.

    Barring ITC, all 10 firms, including Tata Consultancy Services, Infosys, ICICI Bank and Hindustan Unilever, were the laggards.

    Nine of 10 most-valued firms saw an erosion of Rs 1,87,808.26 crore in market valuation last week amid an overall weak trend in equities.Last week, the BSE benchmark tumbled 1,538.64 points or 2.52 per cent amid concerns that the US Federal Reserve might raise interest rates further to curb inflation. Fresh foreign fund outflows also dented investor sentiments.

    Barring ITC, all 10 firms, including Tata Consultancy Services (TCS), Infosys, ICICI Bank and Hindustan Unilever, were the laggards.

    HDFC Bank’s valuation declined by Rs 37,848.16 crore to Rs 8,86,070.99 crore at close on Friday.

    The market valuation of Reliance Industries fell by Rs 36,567.46 crore to Rs 16,14,109.66 crore.

    The valuation of TCS tumbled Rs 36,444.15 crore to Rs 12,44,095.76 crore and that of HDFC tanked Rs 20,871.15 crore to Rs 4,71,365.94 crore.

    The market capitalisation (mcap) of ICICI Bank fell by Rs 15,765.56 crore to Rs 5,86,154.58 crore and that of Infosys declined by Rs 13,465.86 crore to Rs 6,52,862.70 crore.

    Bharti Airtel’s mcap dipped by Rs 10,729.2 crore to Rs 4,22,034.05 crore and that of State Bank of India went lower by Rs 8,879.98 crore to Rs 4,64,927.66 crore.

    The valuation of Hindustan Unilever slipped Rs 7,236.74 crore to Rs 5,83,697.21 crore.

    However, ITC added Rs 2,143.73 crore taking its mcap to Rs 4,77,910.85 crore.

    Reliance Industries continued to retain the title of the most valued firm followed by TCS, HDFC Bank, Infosys, ICICI Bank, Hindustan Unilever, ITC, HDFC, State Bank of India and Bharti Airtel.

    Read all the Latest Business News here

    (This story has not been edited by News18 staff and is published from a syndicated news agency feed)



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