India’s TOP 500 Companies 2021

INDIA’S TOP 500 COMPANIES 2021 123 Average Market Capitalization of Top 500 Companies Falls by 24.9% in FY20 The Indian stock markets saw a bad year in FY20, with the BSE shedding 24.9% of market capitalization as on 31 March 2020 as compared to the corresponding date a year ago. Of this, a whopping ` 43 trillion in market capitalization was lost during February-March 2020 alone. The AggregateMarket Capitalisation of India’s Top 500 Companies accounted for about 91%of the BSEMarket Capitalisation as on March 31, 2020. Given the kind of influence these Top 500 Companies have on the bourses, their aggregate market capitalisation also declined sharply during the year, by 23.2%. The decline was broad-based, with all sectors barring six (footwear, retail, FMCG, Food & Food Products, Paints and Telecom Services) witnessing an erosion in the aggregatemarket capitalisation vis-à-vis the previous year. Some of the key sectors which saw at least 25% decline in market capitalisation during the year were Banks, FIs/NBFCs/Financial Services, Tobacco Products, Automobiles and Construction – Infrastructure Development. Biggest Losers Fastest Gainers -24.9% Decline in Aggregate Market Cap. of Top 500 Companies Paints (15.3%) Telecom Services (64.0%) Food Products (14.2%) Construction-Infra Devp (-47.5) Automobiles (-44.2%) Auto Comp (-50.3) Total External Liabilities of Top 500 Companies Increases by 10.3% in FY20 During FY20, the aggregate value of external liabilities of Top 500 Companies rose by about 10.3% to about ` 78.4 trillion. The FIs/NBFCs/Financial Services, Banks, Oil - Refining &Marketing, Power, Iron & Steel and Telecom Services sectors bore the biggest debt burden during the year. In fact, during the year, the Telecom Services sector took on 51.6% additional debt burden, while the Oil – Refining & Marketing sector took on an additional 25.7%. Low Debt High Debt 1.7 times Debt-Equity Ratio (times) of Top 500 Companies at Aggregate Level Trading & Distribution (2.5) Fls/NBFCs/Fin Serv (5.9%) Power Equipment (2.4) Graphit & Electrodes (0.3) Tobacco Products (0.2) Bearings (0.3) Source: Dun & Bradstreet Research Dun & Bradstreet