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ET 500-Research Methodology

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Group Members Arpita Tak - 05 Shantanu Narvekar - 40 Viraj Kapadia - 52

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Introduction

Predicting future can be hazardous at most times. But the ET intelligence group has done some number crunching to predict the stars who are poised to make it to ET 500 and others who are likely to fade away. ET 500 rankings focus on the top 500 revenue grossing companies in India each year and on candidates who they believe have the potential to enter the list next year. Being 5/23/12 part of the ET 500 list is all about size and

Research Methodology used


CAGR, ie. Cumulative Growth Rate = Annualized

weighted average of Revenues, PBDIT and Net Profit in the ration of 50%:25%:25% The Revenues, PBDIT and Net Profit are averages of 3 years

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Top 10 companies of the list


Sr. No. 1 2 3 4 5 6 7 8 9 Company Revenue PAT MCAP Assets ROCE % Industry Indian Oil Corporation Reliance Industry Bharat Petroleum SBI Hindustan Petroleum ONGC TATA motors TATA steel Hindalco Industries 5/23/12 313628 268354 155370 147844 140000 124556 123223 119734 72509 7831 67225 117406 239003 41534 11.9Oil & Gas 12.3Oil & Gas 9.8Oil & Gas 0.7Banks 8.7O&G 25.9O&G 26.6Automobil es 13.8Steel 10.7Metals

20211 270847 1635 19930

10685 113519 1484482 1704 10300 44407 143471 52209 97155 58933

22456 225343 9274 8983 2456 56854 39811 22242

Analysis of the table

5 out of the top 10 companies in the list belong to the Oil & Gas industry. This shows us that this industry has the potential and is a fast growing sector. Even though the ROCE of the later half of the table of top 10 have a higher ROCE, they do not feature in the top 5 spots, which when compared with the Fortune 500, is not the same. 2 banks also feature in the list, of which 1 is the largest public sector bank and the other is the largest private sector bank. This shows that there will be a stiff competition in the banking sector amongst these 2 banks in times to come so as to 5/23/12

IOC

The demand for oil and gas in the Indian market is prevalent, along with the ever rising prices, the sector is poised for more growth in times to come. Upcoming projects to further support their growth. One of the projects of Rs. 29,777.00 crore in Grassroots refinery project at Paradip (Orissa) Indian Oil received the 'Oil & Gas Supply 5/23/12 Chain Excellence' award at the 'Second

Conclusion

ET gives more weightage on revenues, but Fortune 500 as discussed focuses on ROI, Innovation and other factors.

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