Top 10 companies of India by Market capitalization

Top 10 Companies of India by Market Capitalization (Updated sep’19):

Going by the estimations of International monetary fund (IMF), India is the seventh-largest economy in the world in terms of nominal gross domestic product (GDP), which is valued to be worth US$ 2.308 trillion. Now, the Government of India is aiming at stratosphere which is to reach US$ 5 trillion by 2024.I don’t want to be rude and too critical but after looking at the 5% growth rate of first quarter in the current financial year the government of India should forget the dreams of US$ 5 trillion economy.

It is always advised to invest in those companies with a strong market capitalization rather than the companies with a low market cap.

What the hell is market capitalization?

Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks. It is calculated by

Market capitalization = (current market price of 1 share)*(total number of outstanding shares)

Generally the companies are classified into three different types like large cap, mid cap, small cap companies. The companies with a market cap of Rs 29,000 crore or more are considered as large cap stocks. Company with a market cap between Rs 8500 crore and 29,000 crore are mid cap stocks and those less than Rs 8500 crore market cap are small-cap stocks.

Example:

We cannot judge the size of the company just by looking at the share price. For example, here are the share price of two companies in IT sector

1 Tech Mahindra- Rs 682.90

2 Wipro               - Rs 240.00

Which company is bigger?

By looking at the share price you might think that tech Mahindra is a large company when compared to Wipro as the share price of Tech Mahindra is quite large than Wipro.

But, the total number of outstanding shares of Wipro are very huge in number 6,02,63,43,617 shares while tech Mahindra have 96,25,44,506 shares. I hope it is clear that if the share price doesn’t necessarily mean that the company is big.

Therefore, the market capitalization of Wipro is Rs 137,837.38 crores while the market capitalization is Rs 69,365.13 crores.

Hence, Wipro is a bigger company compared to Tech Mahindra.

Here is the list of the top 10 companies in India by market capitalization:

  1.   Reliance Industries

Reliance Industries (RIL) is an multinational company headquartered in Mumbai. The company was co-founded by Dhirubhai Ambani and Champaklal Damani in the 1960’s as Reliance Commercial corporation.
Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is one of the most profitable companies in India. Market capitalization is Rs 810,108.25 crores and the current share price is Rs 1277.95.

2. Tata Consultancy Service

Tata Consultancy service Limited (TCS) is an Indian multinational information technology (IT) service and consulting company headquartered in Mumbai, Maharashtra, India. It is a subsidiary of Tata group and operates in 149 locations across 46 countries.

It is the valuable IT service brand worldwide. The market capitalization is Rs. 768,000.58 crs with a current price of Rs. 2406.70.

3. HDFC Bank

HDFC Bank is an Indian banking and financial services company that was incorporated in 1994, with its registered office in Mumbai, India. Its first corporate office at Sandoz house, worli was inaugurated by the then union finance minister, Manmohan singh.

As of June 2019, it had a base of 1,04,154 permanent employees with 5,130 branches across 2,764 cities. It is India’s largest private lender by assets and market capitalization. It has a market capitalization value of Rs 684,666.10 crs and current share price is 1254.40

4. HUL

Hindustan Unilever Limited (HUL) was established in 1933. It is a British-Dutch manufacturing company headquartered in Mumbai, India. Its products include foods, beverages, cleaning agents, personal care products, water purifiers, and consumer goods.
As of 2019 Hindustan portfolio had 35 product brands in 20 categories with 18,000 employees. The market capitalization is Rs. 433,883.89 crs and the current share price is Rs.2,050.45.

5. HDFC

Housing Development Finance corporation Limited (HDFC) is an Indian financial services company founded in 1977 as the first specialized mortgage company in India based in Mumbai. It is a major provider of finance for housing in India.

HDFC also has a presence in banking, life and general insurance, asset management, venture capital, realty, education, deposits, and education loans. The market capitalization is Rs. 367,720.57 crs and current share price is Rs. 2130.00.

6. Infosys

Infosys Limited is an Indian multinational corporation that provides business consulting, information technology and outsourcing services.

It is the second largest IT company after Tata Consultancy Services with its headquarters in Bangalore, Karnataka, India. Market capitalization is Rs 338,139.22 and the current share price is Rs 794.05.
    

7. ITC

ITC Limited is an Indian multinational conglomerate company headquartered in kolkata, India.

It was Established in 1910 as ‘the imperial tobacco of India Limited’, the company was renamed as the ‘India Tobacco Company Limited’ in 1970 and later to ‘I.T.C Limited’ in 1974. The dots in the name were removed in September 2001 for the company to be renamed as ‘ITC Limited’.

Market capitalization is Rs 314,495.57 crores and the current share price is Rs 256.00.

8. Kotak Mahindra Bank

It is an Indian private sector bank head quartered in Mumbai, Maharashtra, India. It was established in 1985 by Uday Kotak. In Febraury 2003, Reserve bank of India (RBI) issued the license to Kotak Mahindra Finance Ltd., the group’s flagship company.

It offers banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of personal finance, investment banking, general insurances and wealth management. It is the 2nd largest Indian private sector bank by market capitalization value of Rs. 312,034.91 crores with current price of Rs.1634.25.

9. ICICI Bank 

It is an multinational banking and financial services company headquartered in Mumbai and its registered office is in Vadodara, Gujarat. It offers a wider range of banking products and financial services in the areas of investment banking life, life, non-life insurance, venture capital, and asset management.

ICICI Bank has 4867 branches and 14367 ATMs across India and has a presence in 17 countries including India as on March 31, 2018. Market capitalization is 284,740.08 crores and the current share price is 440.90.

10. SBI

The state bank of India (SBI) is an Indian multinational, public sector banking and financial Services statutory body with its headquarters in Mumbai.

SBI descends from the bank of Calcutta, founded in 1806, via the imperial bank of India which in turn became the SBI in 1955, making it the oldest commercial bank in the Indian subcontinent. It is the largest bank in India with a 23% market share, besides a share of 1/4^th of the total loan and deposits market. Market capitalization is Rs 270,085 crores and the current share price is Rs 302.60.