Small business houses outperform giants

Market cap of these groups has appreciated by more than 30 per cent in a month

Small business houses such as the Chhabria, B K Birla, S K Birla, Priyadarshini, Videocon, B M Khaitan and A R Talwar among others have outperformed the giant corporate houses such as Reliance, Tata, Mahindra and Mahindra, Hinduja and Bharti in terms of value creation in the last one month.

The market capitalisation of small business houses has appreciated by more than 30 per cent compared with a 12 per cent decline in wealth reported by the giant corporate houses in the same period.

The Chhabria group was the largest gainer in terms of market capitalisation, with the total market value of seven Chhabria group companies increasing 92 per cent from Rs 348 crore on August 2 to Rs 667 crore on September 2.

The share price of Shaw Wallace has appreciated by 106 per cent from Rs 61 to Rs 125.70 over the same period. Mather and Platt Fire Systems, Falcon Tyres and Hindustan Dorr Oliver are the Chhabria group's other companies that saw their market value increase by more than 25 per cent in the last one month.

The market value of two S K Birla group companies, namely Birla VXL and Mysore Cements, appreciated by 46 per cent from Rs 116 crore to Rs 170 crore.

The total market capitalisation of Priyadarshni group companies PSM Spinning, Sagar Cements and Priyadarshini Cement has increased 44 per cent to Rs 79 crore in the last one month.

The aggregate market wealth of the Videocon group has appreciated by 45 per cent (Rs 202 crore) to Rs 648 crore during the period, and of the B M Khaitan group by Rs 165 crore to Rs 532 crore, M P Birla group by Rs 283 crore to Rs 1,125 crore, B K Birla group by Rs 547 crore to Rs 2440 crore and of the Jaiprakash group by Rs 518 crore to Rs 2,513 crore.

On the other hand, giant business houses like Bharti reported a 10 per cent decline in the aggregate market value in last one month.

The total market capitalisation of two Bharti group companies Bharti Tele-Ventures and Bharti Healthcare has fallen by Rs 2,687 crore to Rs 25,377 crore.

The total market capitalisation of the Tata group has declined by Rs 1,579 crore to Rs 52,957 crore. The Reliance group saw their market value fall by Rs 1,342 crore to Rs 84,824 crore, Hinduja by Rs 296 crore to Rs 4,584 crore and Mahindra group by Rs 147 crore to Rs 5220 crore.

Other small business groups that saw their market capitalisation increase by more than 20 per cent in last one month include the A R Talwar group, whose capitalisation increased by 40 per cent to Rs 59 crore, S P Goneka by 38 per cent to Rs 92 crore, Bharat Vijay Mills by 32 per cent to Rs 355 crore, Radico Khaitan by 30 per cent to Rs 337 crore, Nagarjuna by 29 per cent to Rs 750 crore, Ramco by 25 per cent to Rs 1,393 crore and Arun Bharat Ram by 22 per cent to Rs 587 crore.