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 companyAnalysts 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 CoverageWe 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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