Top Indian Companies Destroying Share Holder Wealth

Bangalore: The top 155 BSE listed companies have together contributed to the loss of share holder wealth worth 22 lakh crore since the 2008 financial crisis, reports Business Standard.

The main reason is said to be the decrease in market value of these companies or inadequate growth of market capital of these companies. There’re 77 companies in the 155 strong list who have contributed to the trend, Reliance Industries leading the pack followed by NTPC, Bhart Airtel, DLF and Reliance Communications.

In the past 5 years, the balance sheet of RIL has grown 15.7 percent to 2.90 lakh crore; whereas during this period, it registered a decline in market capitalization amounting to 51, 000crore. RIL’s return on capital declined from 17.2 percent in 2007-08 to 10.2 percent in 2012-13.

For Bharti Airtel, the balance sheet grew multifold whereas the market capitalization declined 22, 000crore.

Market analysts advise asset sales and divestments to get out of the bad situation.

The good news is, IT, Pharmaceuticals, FMCG companies have together added 12 lakh crore to share holder wealth. TCS, ITC and Infosys lead the pack.

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