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The 25 fastest-growing companies in the latest
edition of ET500 have moved up more than 100
points in ranks. The top 50 companies have
moved up more than 80 points in terms of rank. That is
keeping in tune with the rapid growth in sales and
profits, and market cap of companies.
The scenario may look a little different now, because
these rankings were done before the markets fell. Still,
corporate performance plays a key role in the rankings
and there is nothing to suggest a slowdown on that
front. The company that gained the most in ranks, went
up by 213 steps to reach the 241st position. To know
which company this is, you will have to wait till
Wednesday.
There are other unique elements about the 25 fastest
growing ET500 companies. For instance, industries are
not concentrated. There are companies from virtually all
sectors, signifying the broad sweep of the current
economic growth phase. Pharma, steel, cement, IT,
chemicals, capital goods, textiles, and others -
companies from almost all sectors figure in the fastest
growing companies.
In terms of size, most of the fastest growing companies
in the latest ET500 issue are mid-to-large-sized
companies. This is on the basis of market capitalisation
and/or sales. Among the 25 fastest growing companies
in terms of ET500 ranks, the smallest company is Anant
Raj Industries, belonging to the granite and ceramic
industry, with sales of Rs 85 crore. The largest is JSW
Steel with a turnover of Rs 6,900 crore.
The fastest growing companies also have respectable
levels of market capitalisation. KS Oils is the smallest,
but has a market cap of about Rs 450 crore. The
company with the highest market capitalisation is
around Rs 15,500 crore. That distinction goes to
Ranbaxy Laboratories from the pharmaceutical industry.
Just to give you a comparison - the lowest market
capitalisation in ET500 is around Rs 150 crore. Thus,
the fastest growing companies typically are bigger in
size too. Many have come out with IPOs in recent years:
About half have been listed in the past few years. Some
of the companies of older vintage are Ranbaxy, Moser
Baer, NIIT, Sterlite Optical, and IFCI.
What makes these companies the fastest growing in
ranks in ET500? Much has to perhaps do with the
developments in these companies and/or the industry
per se. Even when market valuations are shooting
through the roof, some companies have marched
ahead of others on account of news flows, acquisitions.
Other fast-moving companies have benefited from
beneficial industry cycles. Examples are steel, cement,
capital goods and construction. For instance, market
capitalisation of cement makers more than doubled
against 37% growth recorded by all 500 stocks.
Similarly, net profit of cement companies jumped by
143% year-on-year and their net sales went-up by 78%
y-o-y. The figures for the entire universe of 500 stocks
were 29% and 25%, respectively.
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