The Bombay Stock Exchange (BSE) on Wednesday launched the first environmental-friendly equity index, BS Greenex, which would enable investors to take more informed decisions in the country’s green theme.
The new 20-share index inaugurated by Corporate Affairs Minister Veerappa Moily, is dominated by large-cap firms from banking, capital goods and pharma sectors. ICICI Bank, State Bank of India, HDFC, Sun Pharma and Bharat Heavy Electricals Limited (BHEL) are the major constituents. Though the exchange has said eligible companies from BSE 100 would be included, the initial lot comprises only big names. Only a handful of companies out of the benchmark Sensex have qualified for a berth in the index which tracks the “carbon- performance” of companies.
Notable exclusions from among the Sensex firms include, Reliance Industries Limited, Oil and Natural Gas Corporation and Coal India Limited from the energy space, cigarette maker ITC and information technology firms, such as Wipro and Infosys.
| TEPID GROWTH IN FY13 | |||
| In Rs crore | FY11 | FY12E | FY13E |
| Net sales | 265,811.00 | 324,611.90 | 322,535.20 |
| % chg y-o-y | 30.5 | 22.1 | -0.6 |
| Ebitda | 38,004.00 | 36,732.80 | 37,279.10 |
| Ebitda (%) | 14.3 | 11.3 | 11.6 |
| Net profit | 20,211.00 | 21,124.80 | 22,398.10 |
| % chg y-o-y | 27.1 | 4.5 | 6.0 |
| EPS (Rs) | 67.8 | 65.6 | 69.5 |
| PE (x) | 12.3 | 12.7 | 12.0 |
| E: Estimates Source- Capitaline, Bloomberg, Analyst Reports | |||
“The BSE Greenex index is a veritable first step in creating a credible market-based response mechanism in the country, whereby both businesses and investors can rely upon purely quantitative and objective performance based signals, to assess “carbon performance”,” the exchange said.
The new index includes the top 20 companies, which are good in terms of carbon emissions, free-float market capitalisation and turnover. gTrade Carbon Ex Ratings Services (gTrade) has co-developed the BSE Greenex index in close association with BSE. The index would help create viable market-based solutions for industries, investors and governments, to promote energy efficient practices and encourage impact investing in economically and environmentally sustainable businesses, an official communication said.
The index is a free-float market capitalisation weighted index comprising the list of BSE-100 index, BSE said. The index has been back-tested from October1 , 2008 (base date) with the base index value of 1,000. The index is rebalanced on a bi-annual basis i.e. end of March and September quarters. The September-quarter review would be based on the fresh set of carbon emission numbers and the March quarter review would be based on the existing carbon emission numbers but latest financial data.
