In the current scenario, where every event is marked with
uncertainties and good companies are available at never-seenbefore
valuations, we decided to conduct an analysis based on
cash balances with the companies.
In this approach, we have undertaken the following steps –
1. We chose BSE 500 (excluding banking stocks) as our
universe, thereby covering ~84% of the BSE market
capitalization.
2. We ranked the companies on the basis of Net Cash Balance
as a percentage of Market Capitalization.
3. In step 2, we found 147 companies to be net cash positive as
per the last audited results. The remaining companies were
excluded from further analysis.
4. Thereafter, we removed the companies with a market
capitalization of less than Rs 2,000 crore. After this, we
were left with 20 companies.
5. The top 8 (on the basis of ranks in step 2) of these 20
companies have been presented in this report, alongwith
our views.
The Top 8• Hindustan Zinc
• NALCO
• Bharat Electronics
• MTNL
• Neyveli Lignite Corporation
• Satyam Computers
• Thermax
• Maruti Suzuki
Read full report here
Top 20 cash rich companiesRESEARCH REPORTS