As per the International Monetary Fund (IMF), India is the fifth-largest economy globally in nominal Gross Domestic Product (GDP) and is estimated to be USD 4.9 Trillion by 2024. While the country was hit hard by the Covid-19 pandemic and an ensuing harsh lockdown, the impact of the pandemic appears to be diminishing, and recent economic signs are reassuring. Growth will be pushed in the coming years by surging consumption, investment, and exports, while structural reforms pose an upside risk.
A business is generally assessed on different parameters such as assets, profits, sales, market value, share price, etc., and is ranked respectively.
However, when we talk about the size of a company, one of the most significant factors to look at is its market capitalization.
This post will discuss the ten biggest public companies in India based on their latest market capitalization.
What Is Market Capitalization?
As per Investopedia, “Market capitalization refers to the total market value of a company’s outstanding shares of stock. Commonly referred to as “market cap,” it is calculated by multiplying the total number of its outstanding shares by the current market price of one share.”
For example, a company with 10 million shares selling for ₹100 would have a market cap of ₹1 billion. The investment community uses this figure to determine a company’s size instead of using sales or total asset figures. The market cap is used to determine whether a takeover candidate represents a good value or not to the acquirer in an acquisition.
Let me give you an example.
The current share price of Maruti Suzuki and MRF is given below.
- Maruti Suzuki – ₹ 7,573.85
- MRF – ₹ 85,541
From the price point, you may think that MRF is a more prominent company compared to Maruti Suzuki right!!!, Wrong, the share price, when multiplied by the number of shares, gives you the size of the company. Alone the share price can not give you the size of the company.
For example, the MRF has 0.43 crore shares compared to 30.6 crore shares of Maruti Suzuki, which makes Maruti a much larger company compared to MRF.
Top 10 Companies in India by Market Capitalization
Here is the list of the top 10 companies in India by market capitalization:
1. Reliance Industries Ltd
2. Tata Consultancy Services Ltd (TCS)
3. HDFC Bank Ltd
4. Infosys Ltd
5. Hindustan Unilever Ltd (HUL)
6. Housing Development Finance Corporation Limited (HDFC)
7. ICICI Bank Ltd
8. State Bank of India (SBI)
9. Bajaj Finance Ltd
10. Kotak Mahindra Bank Ltd
1. Reliance Industries Ltd
Reliance Industries Ltd has a market cap of INR 13,92,574.51 Cr.
Reliance Industries Ltd is refining, manufacturing refined petroleum products and petrochemicals, including manufacturing basic chemicals, fertilizers, and nitrogen compounds, and plastic and synthetic rubber in primary forms.
Reliance Industries Ltd is currently trading at a PE of 28.34 and a PB ratio of 1.74.
2. Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services Ltd has a market cap of INR 12,36,038.01 Cr.
Tata Consultancy Services Ltd (TCS) provides information technology (IT) services and digital and business solutions.
Tata Consultancy Services Ltd (TCS) is currently trading at a PE of 38.11 and a PB ratio of 14.18.
3. HDFC Bank Ltd
HDFC Bank Ltd has a market cap of INR 8,21,684.96 Cr.
HDFC Bank Ltd offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side.
HDFC Bank Ltd is currently trading at a PE of 25.81 and a PB ratio of 3.90.
4. Infosys Ltd
Infosys Ltd has a market cap of INR 6,62,507.92 Cr.
Infosys Ltd is engaged in consulting, technology, outsourcing, and next-generation services.
Infosys Ltd is currently trading at a PE of 34.23 and a PB ratio of 8.62.
5. Hindustan Unilever Ltd (HUL)
Hindustan Unilever Ltd has a market cap of INR 5,82,228.11 Cr.
Hindustan Unilever Ltd is engaged in a fast-moving consumer goods business. The Company’s segments are Soaps and Detergents, Personal Products, Beverages, Packaged Foods, chemicals, water business, and infant care products.
Hindustan Unilever Ltd is currently trading at a PE of 72.82 and a PB ratio of 12.20.
6. Housing Development Finance Corporation Limited (HDFC)
Housing Development Finance Corporation Limited (HDFC) has a market cap of INR 4,44,106.95 Cr.
Housing Development Finance Corporation Limited (HDFC) is a holding company engaged in financing through loans to purchase or construct residential houses, commercial real estate, and specific other purposes in India.
Housing Development Finance Corporation Limited (HDFC) is currently trading at a PE of 23.69 and a PB ratio of 2.68.
7. ICICI Bank Ltd
ICICI Bank Ltd has a market cap of INR 4,36,865.98 Cr.
ICICI Bank Limited is engaged in providing a range of banking and financial services, including commercial & retail banking, project & corporate finance, insurance, venture capital and private equity, investment banking, and broking.
ICICI is currently trading at a PE of 23.76 and a PB ratio of 3.36.
8. State Bank of India (SBI)
State Bank of India (SBI) has a market cap of INR 3,75,190.66 Cr.
State Bank of India (SBI) is a public sector bank providing products and services to personal, commercial enterprises, large corporates, public bodies, and institutional customers.
State Bank of India (SBI) is currently trading at a PE of 16.74 and a PB ratio of 0.95.
9. Bajaj Finance Ltd
Bajaj Finance Ltd has a market cap of INR 3,59,564.12 Cr.
Bajaj Finance Ltd is a non-banking finance company (NBFC). The Company is engaged in the lending and allied activities.
Bajaj Finance Ltd is currently trading at a PE of 81.35 and a PB ratio of 9.73.
10. Kotak Mahindra Bank Ltd
Kotak Mahindra Bank Ltd has a market cap of INR 3,40,757.99 Cr.
Kotak Mahindra Bank Ltd offers a range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side.
Kotak Mahindra Bank Ltd is currently trading at a PE of 34.40 and a PB ratio of 5.07.
Disclaimer: This data is updated in July 2021. As the stock price changes in the future, market capitalization will also change. Hence, the list of top 10 companies in India by market capitalization can also change in the future.
That’s all for this post on the top 10 companies in India by Market Capitalization. I hope it was helpful for you. Take care and Happy Investing.
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