Five Gujarat companies' m-cap crosses Rs 50,000 crore in 2021

AHMEDABAD: Gujarat Gas Limited (GGL)'s market capitalization crossed Rs 50,000 crore on Friday. With this, five Gujarat-based companies have achieved this milestone in 2021 on the back of a strong rally in their share prices.

Apart from Gujarat government-owned GGL, other four companies to have made it to the Rs 50,000 crore and more m-cap club this year are Cadila Healthcare Ltd, Torrent Pharmaceuticals Ltd, Adani Total Gas Ltd (ATGL) and Adani Transmission Ltd (ATL).
The number of Gujarati companies in this coveted club has more than doubled in 2021 with soaring equity markets. Before the current calendar year, the companies that had market cap above Rs 50,000 crore included the likes of Adani Enterprises Limited (AEL), Adani Green Energy Limited and Adani Ports and Special Economic Zone Ltd (APSEZ).
Most of these companies that have registered a market cap of more than Rs 50,000 crore this year are from the city gas distribution (CGD) and pharmaceutical sectors.
"CGD players such as GGL and ATGL have benefited from the increased demand and consumption of natural gas, while pharma firms have gained from the demand growth in the wake of Covid-19 pandemic," said Nilesh Kotak, a city-based stock analyst.
"Cadila Healthcare's share price has nearly doubled within a year following its strong financials and developments related to its Covid-19 vaccine," said Aasif Hirani, director at an Ahmedabad-based brokerage firm.
‘Covid helped almost all pharma cos’
Aasif Hirani, director at an Ahmedabad-based brokerage firm said, “Cadidla Healthcare is one of the indigenous companies to have started clinical trials on children for its Covid vaccine. Covid has helped almost all pharma companies.” “As compared to other pharma companies, Torrent pharma has underperformed as its total income growth has been inconsistent. However, its EBITDA margin is expected to increase with revival in US and Brazil business along with some new product launches,” added Hirani.
While GGL, ATGL and ATL have entered the Rs 50,000 crore and more m-cap club for the first time, Torrent Pharma had seen its market cap cross that mark for a brief period last year and Cadila Healthcare witnessed that happening a few years ago.