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Only 350 firms increased shareholder wealth

BS Research Bureau

Relatively unknown companies with thin traded volumes, public sector companies in the divestment list and companies which had declared buyback offers posted gains in the range of 100 per cent to 1,500 per cent during 2001.

Only 350 companies increased shareholder wealth during the year out of 1,900 that were traded on the Bombay Stock Exchange.

Their aggregate market capitalisation jumped 16 per cent (Rs 225.18 billion), with 65.7 per cent of the total gains coming from the top 10 companies of the lot.

The 350 companies accounted for 32.9 per cent of the total market capitalisation of the BSE. Among the top 10 stocks, all from the B2 group, Dhanalaxmi Cotex topped the list with an appreciation of 1,488 per cent in the share price.

The stock, which was available at Rs 4.25 in the beginning of the year, zoomed to Rs 67.50 by the year end. A closely held company, 82 per cent of Dhanalaxmi's equity capital made up of 4.871 million shares is with the promoters. The share price of Media Matrix World-wide, another stock among the top 10, surged by 1,391 per cent to Rs 191 as the company turned into the black during 2000-01.

The share price of IBP, the hottest public sector stock in the divestment list, increased 179 per cent during the year. Bajaj Auto, which was written off by investors on account of disappointing results during 2000-01, bounced back with healthy results during the first half of 2001-02. Following this, the stock price appreciated 63.9 per cent.

Losers: Majors feel the hear

Plenty of investors were hoping for a revival in fortunes in 2001, but the stock markets ditched them once again.

The year saw eight out of every 10 companies traded on the Bombay Stock Exchange registering a decline in market value.

As a result, the equity markets shed more than one-third of their capitalisation, translating onto an actual loss of Rs 1,869.95 billion.

As many as 1,550 companies reported a decline in market value, which is tantamount to a 35.94 per cent slump in aggregate market value.

The year saw almost all stocks -- whether coming from profit or loss making companies, blue chip or second rung stocks -- in the losing track.

The top 10 companies which have depreciated the most in the last one year accounted for 45.6 per cent of the total loss in market capitalisation. These companies underperformed the market with a value depreciation of 42.33 per cent.

Wipro topped the losers' list with a Rs 160.07 billion decline in market value at Rs 399.41 billion. Reliance Petroleum fared badly with a price depreciation of 47.4 per cent and a decline in market value at Rs 139.41 billion.

Infosys Technologies, third in the list, lost Rs 108.88 billion, Himachal Futuristic shed Rs 94.65 billion and HCL Technologies reported a drop of Rs 79.54 billion worth market capitalisation.

As many as 651 companies saw a price decline of over 50 per cent, with the market price of MOH Ltd declining by 99.69 per cent. The stock, which was traded at Rs 64.50 last year, is now available at 20 paise.

The share price of Motorol Speciality Oils declined by 98.22 per cent to 50 paise, Triumph fell by 96.55 per cent to Rs 12.80, Sun Infoway slipped by 96.4 per cent to Rs 14.35 and Supreme Tele was down by 96.3 per cent to 25 paise.

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