As per the report published by Edelweiss, the shares of 13 companies have been upgraded from the mid-cap category to the large-cap category. Amongst those are the recently listed food aggregator Zomato, online payment service provider Paytm, e-commerce company Nykaa and the insurance aggregator Policy Bazaar.
Apart from that, the research report also mentioned about 20 shares that were downgraded from large-cap to mid-cap and other 20 shares that came down to small-cap from the mid-cap category. On the contrary, 9 shares were upgraded from small-cap to mid-cap category and as many as 32 companies that recently got listed were added to the small-cap category of companies.
What is Market Cap?
Market capitalization means the total rupee value of the company. It is calculated by multiplying the total number of shares of the company with the current market price of its share. Suppose Company X has 5 Lakh shares in total and its share is trading at Rs. 200. The market capitalization of Company X will be Rs. 1,000 crores.
Companies with different market-cap are categories as follows:
|Up to Rs. 500 Crore||Small-Cap|
|Rs. 500 Crore to Rs. 7,000 Crore||Mid Cap|
|Above Rs. 7,000 Crore||Large Cap|
Companies with m-cap above Rs. 20,000 crore are categorized as mega-cap companies but we do not have a separate categorization for shares of such companies in the stock market.
Based upon the market capitalization, the Association of Mutual Funds in India (AMFI) has re-shuffled some of the companies as the prices of their shares have made significant changes in the past few months. These changes made by the AMFI shall take effect starting from February up to July 2022. Let us look at them below.
From Mid-cap to Large-cap
In total, 13 companies have made their way to the large-cap from mid-cap. The list of 13 companies includes recently listed internet giants like Zomato, Paytm, Policy Bazaar, and Nykaa. Other names include Tata Power, IRCTC, JSW Energy, Mindtree, Mphasis, SRF, Macrotech Developers, Godrej Properties, and Bharat Electronics.
From Large-cap to Mid-cap
20 companies made a downward journey from large-cap to mid-cap. This list contains names like Aurobindo Pharma, Bandhan Bank, Lupin, Biocon, Yes Bank, Nuvoco Vistas, ABSL AMC, Devyani International, Bosch, NMDC, Bank of Baroda, PNB, Colgate Palmolive, Aptus Value, Cholamandalam Fin, Star Health, P&G Hygiene, Honeywell Automation, Clean Science and Tech, and GR Infra.
Small-cap to Mid-cap
However, 9 companies made it to the mid-cap category from small-cap. These companies were the Indian Energy Exchange, CG Power, Grindwell Norton, Prestige Estates, Trident, NALCO, Happiest Minds, CBI, and Guj Fluorochem.
Mid-cap to Small-cap
The list of 20 companies that were downgraded from the mid-cap category to the small-cap category include names like Phoenix Mills, Manappuram Fin, Exide Batteries, Apollo Tyres, Castrol, RBL Bank, Indigo Paints, Amara Raja Batteries, Bank of Maharashtra, Blue Dart, Glenmark, Alembic Pharma, Suven Pharma, etc. Most of these companies are auto ancillary companies, pharma companies, and banking and finance companies.
Newly Listed Companies into Small-cap
The report named 32 recently listed companies that made their entry to the small-cap list. The names include Go Fashion, RateGain Travel, CMS Info Systems, MedPlus Health, Metro Brands, Sapphire Foods, Latent View Analytics, Shriram Properties, Anand Rathi Wealth, Paras Defence, etc.
Source: Financial Express
What is the difference between Mid-cap and Large-cap?
The companies with a market capitalization of Rs. 500 crores to Rs. 7,000 crores are categorized as mid-cap companies whereas companies with a market cap of Rs. 7,000 crores and above are termed as large-cap companies. You must also note that companies with a market cap below Rs. 500 crores are small-cap companies.
What is AMFI?
AMFI stands for Association of Mutual Funds in India. It is a government-organized non-profit institution. It operates under the stock market regulator SEBI and regulates the mutual funds in India. It was formed to spread awareness about mutual funds amongst retail investors and to protect their interests.
How much is the market capitalization of Zomato and Nykaa?
The market capitalization of Zomato is Rs. 101,580 crores when the current market price of the share is Rs. 130, whereas the m-cap of Nykaa is Rs. 94,743 crores while the share of Nykaa is trading at Rs. 2,004.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.