6 cash rich companies

Source: IRIS (09-JAN-10)

Following are the 6 cash rich companies from BSE 100, BSE Midcap and BSE small cap indices. The cash rich companies reflect the levels of cash they are sitting on as on Mar. 31, 2009.

1) Reliance Industries (RIL):

Market capitalization: Rs 3,578,062.53 million
Index: Sensex
1-year return of RIL (as on Dec. 31, 2009): 77.10%
Sensex return for 1-year (as on Dec. 31, 2009): 81.03%
Price earnings (P/E) ratio: 24.57
Price to book ratio (P/B): 2.52

Reliance Industries (RIL), India`s largest private sector enterprise, with businesses in the energy and materials value chain is the No. 1 company with the highest cash levels of around Rs 221,765 million as on Mar. 31, 2009. On January 4, the company announced it has raised nearly Rs 26.75 billion for the same by selling treasury shares held by Petroleum Trust at an average price of about Rs 1,035 a share. In September 2009, it raised around Rs 31 billion by selling 15 million treasury shares held by Petroleum Trust.

2) Steel Authority of India (SAIL):

Market capitalization: Rs 1,029,502.2 million
Index: BSE 100
1-year return of SAIL (as on Dec. 31, 2009): 210.71%
BSE100 return for 1-year (as on Dec. 31, 2009): 85.03%
Price earnings (P/E) ratio: 19.33
Price to book ratio (P/B): 6.04

The largest integrated iron and steel producer in India, Steel Authority of India`s (SAIL) cash levels stood at Rs 182,285 million as on Mar. 31, 2009. It reported 32% growth in sales at 1.3 million tons in December 2009. The sales in the third quarter ended December 2009 grew by 23% over the corresponding period last year due to increase in sale of products consumed by the construction industry.

3) Mahanagar Telephone Nigam (MTNL):

Market capitalization: Rs 53,014.5 million
Index: BSE 100, BSE Midcap
1-year return of MTNL (as on Dec. 31, 2009): -6.71%
BSE 100 return for 1-year (as on Dec. 31, 2009): 81.03%
BSE Midcap return for 1-year (as on Dec. 31, 2009): 107.66%
Price earnings (P/E) ratio: NA
Price to book ratio (P/B): 0.47

Mahanagar Telephone Nigam (MTNL), a leading telecom service provider has cash position of Rs 48,027.98 as on Mar. 31, 2009. MTNL offers a complete range of telecommunication services including dial-up, broadband, home and mobile telephony, ISDN and leased line services. Recently, the Prime Minister`s IT advisor Sam Pitroda said the government is not planning to merge MTNL and BSNL. ``There is no move to merge BSNL and MTNL,`` he said.

4) Shipping Corporation of India (SCI):

Market capitalization: Rs 68,239.55 million
Index: BSE Midcap
1-year return of SCI (as on Dec. 31, 2009): 85.22%
BSE Midcap return for 1-year (as on Dec. 31, 2009): 107.66%
Price earnings (P/E) ratio: 12.64
Price to book ratio (P/B): 0.89

Shipping Corporation of India (SCI), owned by government of India, operates and manages vessels that services both national and international lines has cash of Rs 26,728.30 million as on Mar. 31, 2009. SCI plans to acquire three new container ships in 2010 along with its existing JV partner Mediterranean Shipping Company (MSC) and has set aside USD 200-225 million to fund these purchases.

5) JSL(Jindal Stainless Limited):

Market capitalization: Rs 19,934.49 million
Index: BSE Small cap
1-year return of JSL (as on Dec. 31, 2009): 248.37%
BSE Small cap return for 1-year (as on Dec. 31, 2009): 126.91%
Price earnings (P/E) ratio: NA
Price to book ratio (P/B): 1.23

JSL, a multi-billion, multi-national and multi-product steel conglomerate has cash positions of Rs 6,572.19 million as on Mar. 31, 2009. JSL is likely to increase stainless steel manufacturing capacity to about 2.5 MT by March 2014 on the back of a 1.6 MT greenfield plant it would set up in Orissa, making it the largest producer in India.

6) Ingersoll-Rand (India)

Market capitalization: Rs 11,312.39 million
Index: BSE Small cap
1-year return of Ingersoll-Rand (as on Dec. 31, 2009): 49.80%
BSE Small cap return for 1-year (as on Dec. 31, 2009): 126.91%
Price earnings (P/E) ratio: 24.31
Price to book ratio (P/B): 2.55