Market Cap Of 72 Firms Lower Than 1-Year Profit

The market valuation of as many as 72 stocks of profit making companies has fallen to such lows that they are now available below their respective earnings per share (EPS).

In other words, the current market capitalisation of each of these stocks is lower than its net profits for the year 2000-01.

Prominent among the stocks that have lost heavily is Himachal Futuristic Communication whose market capitalisation of Rs 245.08 crore today is lower than its net profit of Rs 318.33 crore in 2000-01.

The Dhoots of Videocon have met with the same fate. Videocon International, which is banned by Sebi from accessing the capital market for a year, is available at a total market cap of Rs 126.28 crore though the company earned a net profit of Rs 154.70 crore in 2000-01.

The promoters of Vikas WSP were spinning the success story of gaur gum polymer when the company was doubling net profits every quarter.

The promoters proposed a 50 per cent dividend for 2000-01, but never distributed it to shareholders. Once the exports markets turned hostile, the stock plummeted. So low, in fact, that the entire company is available at Rs 64.81 crore as against the full year net profit of Rs 108.40 crore.

Pentasoft Technologies was flying high at one time with a discounting of over eight times and a total market capitalisation of Rs 1,096 crore in October 2000. Today its market cap is just one-tenth of that at Rs 99.47 crore even though its net profit for 2000-01 was Rs 126.65 crore.

Computech International, Maars Software, Netvista Information, Padmini Technologies, RS Software and Sun Infoways from technology sector, Alok Industries, Bhartiya International, Essar Shipping and Star Paper from old economy sectors are the other companies, whose current market capitalisation is much lower than their net profits for 2000-01.