Stocks that stormed into Rs 10-bn club

New Delhi: It had been a humble beginning, enrolling in the CNX 500 in 2003. But three years later, some of these crawlers metamorphed into a Rs 1000 crore giants; thanks to the insatiable bull rally in India.

Research done by Moneycontrol shows that as many as nine companies from CNX 500 have entered the Rs 10-billion club in the three-year period ending March 31, 2006 from a market cap of almost a Rs 1 billion in 2003.

The stock prices of these companies have grown by a phenomenal 680-4216 per cent as investors rode the bull markets ably bolstered by a surging Indian economy.

Out of the 23 companies from CNX 500 that had a market cap between Rs 90 and Rs 110 crore as on March 31, 2003, as many as 21 belonging to diverse sectors like sugar, cement, power and capital goods doubled their market cap till March 31, 2006.

Out of these, 10 companies have seen a ten-fold jump in their market cap in the three-year period as the stock market bull surged in Asia’s fourth-largest economy.

Interestingly, companies like BOC India, Rico Auto Inds, Usha Martin, Carborundum Universal, Dalmia Cement, DCM Shriram Consolidated, CESC, Birla Corp and Aban Lloyd Chiles have become more than ten billion rupee market cap companies during this period.

In percentage terms, the market cap of these companies have shown growth of anywhere between 926-5043 per cent.

On the other hand, stock prices of companies like Carborundum Universal, DCM Shriram Consolidated, CESC, Birla Corp and Aban Loyd Chiles too have grown by more than 1000 per cent indicating a multi-fold jump in returns.

However, there are two bad apples as well in this basket of wealth creators. In the case of Subhash Ghai promoted Mukta Arts, the percentage gain in stock price is even lower than gains in the market cap.

While Mukta Arts' market cap increased 21 per cent, its stock price performed worse, witnessing a mere 17 per cent increase during the comparable period.

Consolidated Finvest, on the other hand, saw its market cap jump only 57 per cent but stock price noticed a fatter gain at 80 per cent.