Whether India’s GDP will touch the $5 trillion mark soon or not is a debatable question but one thing is sure that India’s ₹ 5 lakh crore (trillion) market capitalisation (M-Cap) club is on the rise. On Monday, though benchmark indices tanked by more than 3 per cent (Nifty shed 432 points), IT bell whether Infosys Technologies Ltd (Infy) was able to maintain its membership of 5 lakh crore M-cap club. Infy entered the coveted club on Friday last.
Not only this, due to prolonged bull run witnessed on the bourses, the list of companies having M-cap above ₹ 1 Lakh crore will expand by at least 7 companies shortly, Motilal Oswal Financial Services Limited (MOFSL) note said.
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“Infosys on Friday joined the Rs 5 lakh crore market-cap club. It’s the fifth company to enter the club after Reliance Industries (RIL), Tata Consultancy Services (TCS), HDFC Bank, and Hindustan Unilever Ltd (HUL)”, A valuation guide released by MOFSL said.
Next in the queue to enter the prestigious Rs 5 Lakh crore club is HDFC Ltd at ₹ 4.44 Lakh crore M-cap whereas Kotak is now just 4 per cent away from breaching the Rs 4 lakh crore M-Cap threshold. ICICI Bank M-Cap stands at ₹ 3.55 Lakh crore.
In yet another interesting observation, Asian Paints M-Cap at Rs 2.5 Lakh crore is now just 5 per cent away from ITC’s Rs 2.65 lakh crore M-CAp. “I would reckon this as the most striking statistics in the large-cap market-cap space”, Hemang Jani, Equity strategist, MOFSL said.
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Asian Paints’ FY22 is P/E at 72x while ITC’s P/E is at 17x. Asian Paints is expected to post Rs 3,500 crore profits while ITC is expected to deliver Rs 16,000 crore profits in FY22e. Asian Paints is now trading at a premium to HUL and Page Industries, which is a rare happenstance, Jani stated.
After the recent rally, some of the heavyweight PSU/commodity stocks like NTPC, ONGC, Hindustan Zinc have regained the Rs 1 lakh Crore m-cap mark.
There are seven companies from different sectors poised at Rs 90,000 crore m-cap. These are Dabur, Britania Industries, M&M, Shree Cement, JSW Steel, Indian Oil Corporation (IOC), and Coal India (CIL). Which will be the first one among these companies to enter the Rs 1 lakh crore club. Any guesses?
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