October 19, 2004
| TIMES NEWS NETWORK
SMALL IT FIRMS M-CAP RISES BY UP TO 200 PERCENT IN 6 MONTHS
TIMES NEWS NETWORK [TUESDAY, OCTOBER 19, 2004 12:47:05 AM ]
A bunch of small and mid-cap IT companies have done better than the bigger IT companies in one aspect.
The increase in market capitalisation recorded by them is much greater than that of the biggies.
Over the past six months, these companies have witnessed more than a 100% increase in their market caps.
KPIT Cummins Infosystems, Teledata Informatics, Aztec Software, Mascon Global, Nucleus Software, Onward Technologies and Spanco Telesystems are some of these companies.
An ETIG study compared the average market cap of IT companies during the period October 1- 15, ’04, with the period from April 1-15, ’04.
All IT companies who have experienced an increase of more than 100% have market caps of less than Rs 300 crore. KPIT Cummins Infosystems, Teledata Informatics, Aztec Software, Mascon Global, Nucleus Software, Onward Technologies, Spanco Telesystems and Solutions, Micro Tech, Toubro Infotech and Jetking Infotech have witnessed an increase in market cap in the range of 100-150%.
It should be noted that some of these companies, namely, Jetking Infotech and Toubro Infotech, have market caps as low as Rs 30 crore.The market caps of Onward Technologies, Micro Technologies and Softpro Systems have increased by more than 200%.
For all companies with market cap of greater than Rs 1000 crore, the total market cap has risen by 19% in the last six months.
This is higher than the increase in total market cap of all companies with market caps in the range of Rs 200-800 crore. However, the total market cap has increased by just 5% for companies having market cap of less than Rs 200 crore.