What is cash rich company?
Cash and bank balances indicate the amount of cash that a company has on its books at a specific point in time. The position of cash and bank balances net of debt is one of the indicators of financial strength and liquidity of the company. Cash and bank balances include balance with bank, term deposit with banks and cash in hand/others.
Importance of cash rich company
Analysts suggest that a cash rich company is a sign of financial strength while a small cash position is a possible caution or warning sign. The cash rich companies have an edge over cash strapped companies as cash can be used to fund operations and acquisitions, to buyback shares and to repay debt. It also helps the company to survive in torrid times of recession. A dark side of cash rich company is that too large of a cash position can often signal waste of funds as the funds are placed idle or produce very modest return.
Data Coverage
We have taken all the listed companies on the Bombay Stock Exchange. We have taken only those companies whose cash value net of debt is greater than Rs 300 crore and sorted the top 50. We have not taken the investment value into consideration since some companies have invested in government bonds or group companies.
Interestingly, 8 companies out of top 10 cash rich companies by value were PSU companies.
* All figures (Rs in Cr)
Company Investments Cash and Total Net Market Bank Bal. Debt Cash Cap BHEL 6 10329 167 10163 111713 SAIL 37 18486 8666 9820 73108 NMDC 72 9740 - 9740 144910 Infosys - 9695 - 9695 137855 M T N L 465 4803 - 4803 5868 Rajesh Exports 385 5537 1951 3587 2066 Natl. Aluminium 896 2869 - 2869 23440 MMTC 399 6022 3209 2814 168240 Hind.Zinc 6929 2719 9 2710 34645 Bharat Electron - 2658 2 2656 11450 Cairn India 171 6527 4356 2171 49854 TCS 1614 2698 563 2135 117598 Engineers India 151 1921 - 1921 6326 Container Corpn 168 1767 49 1718 14742 Oracle Fin.Serv. 1 1549 - 1549 15173 Sun Pharma. 1859 1669 179 1490 24953 Hind. Unilever 288 1864 434 1430 58484 Siemens 245 1322 11 1311 18836 Neyveli Lignite 722 5482 4210 1272 22909 Maruti Suzuki 3277 1987 759 1228 47938 ITC 2507 1318 187 1132 88101 Eicher Motors 6 1260 166 1094 1527 PTC India 533 1052 20 1032 2597 Edelweiss Cap. 270 1721 762 959 3387 HCL Technologies 1377 1011 55 956 22947 Glaxosmit Pharma 730 957 6 951 12694 Bosch 867 1071 264 806 13153 Lak. Mach. Works 104 627 - 627 1766 Hinduja Global 1 665 87 578 1038 India Infoline 315 627 52 575 4248 Ambuja Cem. 328 852 289 563 15192 Pfizer 1 544 - 544 2492 Motil.Oswal.Fin. 49 543 0 543 2444 Tech Mahindra 435 538 - 538 11108 Ingersoll-Rand 0 515 - 515 1038 ACC 517 991 482 509 15905 Aventis Pharma 5 497 - 497 3405 GlaxoSmith C H L - 471 - 471 4867 Apar Inds. 0 611 161 450 497 Anant Raj Inds 309 626 210 416 4295 Hind.Copper - 529 113 415 21132 JM Financial 603 525 134 391 3203 Thermax 144 373 4 369 6642 Alstom Projects - 368 1 367 3820 Indiabulls Sec. 52 462 112 350 1348 A B B 61 348 0 348 16987 Bajaj Finserv 6595 642 311 331 4271 Heidelberg Cem. 0 338 10 328 1015 Dredging Corpn 30 332 6 326 1409 Info Edg.(India) 18 322 0 322 1914
Source: Capitaline
Disclaimer: Datawatch is purely intended to reveal interesting statistics. Moneycontrol sources all price information from BSE/NSE and company information from Religare Technova. Moneycontrol is not responsible for inaccuracy/non-updation of data. There is no intention whatsoever to arrive at any conclusion or recommend any stocks or sectors. Please consult your financial advisor before taking any investing decisions.
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