Reliance Ind tops BT500 list again

While Reliance India Ltd (RIL ) retained the top slot as India's most valuable company, Coal India replaced ONGC as India's mostvalued public sector undertaking (PSU) in the latest BT500 India's MostValuable Companies list.

Business Today (BT) magazine's top 500 rankings havecombined the ranking for PSUs and private companies in a single list."Reliance Industries, traditionally the No. 1 private company, retains itstop billing in the combined list as well. But traditional PSU No. 1, ONGC, doesnot take the No. 2 slot. That goes to new hot stock Coal India, a PSUthat listed on November 4, 2010 to an overwhelming response," BT says.

According to Business Today's ranking this year there arefour PSUs in the top 10, and eight in the top 20.

"These are all strong companies in their own right, andcapable of challenging the big private entrepreneurs and theirenterprises," Business Today has stated.

UltraTech Cement and Bharti Airtel have been listed as twoof the biggest value creators this year in a volatile market.

Helped by its Rs 10,000- crore capital outlay plan over thenext three years, Ultra- Tech Cement posted an 88.85 per cent growth in itsmarket cap this year compared to 74.18 per cent last year.

In the light of its strong foray into African markets,Bharti Airtel this year has grown by 27.7 per cent against. Last year, thetelecom major's market cap had declined 24.13 per cent decline last year.

However, three of Reliance-ADAG's companies lost significantmarket value. Reliance Communications saw a decline of 46 per cent in marketvalue in 2011, following a 37.97 per cent fall in 2010.

Reliance Infrastructure and Reliance Capital's market capsfell 45.6 per cent and 31.8 per cent, respectively. Among PSUs MMTC was thebiggest loser.

"The most comprehensive ranking of ' India's MostValuable Companies' reflects a new world where investors reward, or punish,companies in proportion to the value (shareholder wealth) they create ordestroy. Ownership is incidental," Business Today observes.

In terms of sectors IT companies fared better than lastyear. TCS beat Infosys to the top place of the IT rankings after three years.

A stable rupee for the larger part of financial year 2010-11 propped up the IT companies, which found many takers for their services inthe cost-conscious, recession-hit western economies.

A 1.6 per cent slide in Infosys's market cap and a 37 percent growth in TCS's market cap propelled the latter to the No. 1 rank.

The real estate sector, on the other hand, has seen themaximum damage.

DLF's market cap has fallen 28 per cent, and Unitech's, 56per cent. While DLF's rank slid by 10 slots, Unitech fell from No.69 last yearto No. 123 this year. Their beleaguered situation reflects the state of theindustry.

"Unless interest rates go down and make borrowing andbuying affordable, price correction is the only immediate source ofrespite," the magazine says.

Sector- wise ITC was the most valuable FMCG company whileBharti Airtel was the most valuable telecom company and State Bank of India (SBI) was top among the banking companies with a total market valuation of Rs1,48196.7 crore.

The rankings were based on market values taking into accountall 5,030 companies listed on the BSE. The ranking were done on the basis ofaverage market valuation between April and September 2011.