Analysis of Market Caps of listed companies

27Apr10

Certain interesting facts came up in my analysis:

1. 1% of the number of listed companies make up for 50% of total market capitalization

2. 3% of the number of listed companies make up for 75% of total market capitalization

3. 10% of the number of listed companies make up for 90% of total market capitalization

4. 50% of the number of listed companies from the bottom make up for just 0.4% of total market capitalization

5. The average market cap of all listed companies is 1900 crores but the median market cap is 55 crores !!

6. There are 1520 companies with less than 50 crores market cap and 2479 companies with less than 500 crores market cap (out of 3114 companies in total)

7. Roughly, Large Cap means a lower cutoff of 10,000 crores and around 100 companies qualify for this, mid cap means from 1800 to 10000 crores and around 200-250 companies qualify for this. Small cap is anything less than 1800 crores and 2700 to 2800 companies qualify for this

I plan to concentrate significantly in the 100 crore to 2000 crore segment where there are around 950 companies and especially in the 100 crore to 500 crores where there are around 600 companies. I would not prefer to play in the micro cap segment of less than 100 crores though I would be willing to take small bets when good opportunities arises in this area.

7.

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