Top 10 Companies With Highest Free Reserve Per Share

In our present article we are talking about those companies that have the highest free reserve per share.  While calculating the free reserve we were very conservative and have taken into consideration the general reserve and the profit & loss account surplus reserve only. For calculating the same we have not taken into consideration the share premium and the revaluation reserve. The free reserve can be utilised mainly for three reasons: a) for issuing bonus shares, b) for share buy-back and c) it can also be utilised if the company is looking for any inorganic growth. All the figures that we have taken are based on standalone numbers

Borosil Glass Works (BGWL)
Based in Mumbai, the company came into existence in the year 1962 in collaboration with Corning Glass Works of USA. In the year 1988 it become an Indian entity as a whole after Corning Glass Works divested its stake by selling it off to the current Indian promoters. The company is mainly engaged in the manufacturing of laboratory glassware and microwavable kitchenware in India. The company is a market leader in this segment and is the first and only manufacturer of solar glass in India. It has established a 150 tonne per day low iron patterned glass furnace for the manufacture of high transmission glass used in the solar industry. With an equity capital base of Rs 3.14 crore, the total free reserve for the company stands at Rs 619.54 crore. The free reserve per share works out to Rs 1,973.06. The company has secured the top spot in our list. Its stock has yielded a return of mere 1.23 per cent on a year-to-date basis.

Hindustan Composites
The company is a leading manufacturer and marketer of asbestos industrial products and friction materials in India. It has an experience of more than 45 years in this field and operates through two manufacturing units located at Paithan and Bhandara in Maharashtra. The company has been catering to the diversified needs of core sector industries such as railways, engineering, mining, aerospace, steel, chemical, petrochemical, fertiliser, power generation, etc. The free reserve for the company stands at Rs 492.82 crore and the equity capital base stands at Rs 4.92 crore as of FY12. With this capital base the free reserve per share works out to Rs 1,001.67. However, on an YTD basis the stock has shown muted performance, declining by 14.94 per cent.

Grasim Industries
Starting off as a textile unit in the year 1948, the company has diversified and spread its reach to various other segments to become a flagship company of the Aditya Birla Group. At present the company has a presence in viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its revenues and operating profits. Grasim, with an aggregate capacity of 3,33,975 TPA of VSF, has a global market share of 10 per cent. It is also the second-largest producer of caustic soda (which is used in the production of VSF) in India. In cement, Grasim, through its subsidiary UltraTech Cement, has a capacity of 52 million TPA and is a leading player in India. The company has a free reserve that amounts to humongous Rs 8,985.55 crore. The equity capital stands at Rs 91.71 crore and the free reserve per share stands at Rs 979.78. On an YTD basis the scrip has yielded return of 40.36 per cent.

Piramal Enterprises
Piramal Enterprises is the flagship company of the Piramal Group. It has a presence in more than 100 countries across the globe and has manufacturing centres in countries like the USA, UK, Sri Lanka, China and Canada. As per the management, the company aspires to be the first Indian company to discover, develop and launch its own New Chemical Entity (NCE) drug in the global market and has made steady progress towards that goal. The company has more than 115 issued patents and 395 pending patent applications in several countries. It has a free reserve of Rs 636.26 per share and the total reserve amounts to Rs 10,978.75 crore. The equity capital base for the company stands at Rs 34.51 crore. The scrip has gone up by 28.93 per cent on an YTD basis.

Kalyani Investment Company
The company is a part of the Kalyani Group. It was formed by demerging the investment business of Kalyani Steels and by amalgamating the investment undertaking of three wholly owned subsidiaries of Kalyani Steels. It was incorporated on June 25, 2009 as a public limited company. The company has a free reserve of Rs 630.76 per share and the total free reserve stands at Rs 275.64 crore. Its equity base stands at Rs 4.37 crore. At the current market price the scrip has given a negative return of 4.94 per cent. It is the only second scrip in our list other than Hindustan Composites that has yielded negative return on an YTD basis.

Oracle Financial Services Software
Oracle Financial Services Software, together with its subsidiaries, provides information technology (IT) solutions and knowledge processing services to the financial services industry worldwide. The company was previously known as I-Flex Solutions, an IT solution provider to the banking industry. The majority in this company is owned by Oracle Corporation. It claims to have more than 900 customers in over 135 countries. The company has a free reserve of Rs 623.97 per share and the total free reserve stands at Rs 5,240.12 crore. The equity base stands at Rs 41.99 crore. At the current market price the scrip has given a return of 56.24 per cent which is one of the highest among the companies that have been featured in our list.

Kirloskar Industries
Kirloskar Industries is engaged in wind power generation activities in India. The company has seven windmills in Maharashtra with a total installed capacity of 5.6 megawatts. It also owns land and buildings and invests in properties and securities. The company was formerly known as Kirloskar Oil Engines and changed its name in March 2010. Kirloskar Industries is based in Pune. With an equity capital base of Rs 9.71 crore the total free reserve for the company stands at Rs 570.90 crore. The free reserve per share comes to Rs 587.95. The company has secured the sixth spot in our list. The company has yielded a return of 46.12 per cent on a year-to-date basis.

Jindal South West Holdings
Part of the Jindal Group, the company was incorporated on July 12, 2001 as a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). It is an investment company of the JSW Promoters Group with its investment mainly in the Jindal Group of Companies. The main business activities as mentioned in its Memorandum of Association is of investment in shares, stocks or other securities in India or abroad and to provide management consultancy services. With an equity capital base of Rs 11.10 crore the total free reserve for the company stands at Rs 629.67 crore. The free reserve per share comes to Rs 567.275. The company has secured the seventh spot in our list. It has yielded a return of 46.86 per cent on a year-to-date basis.

Bharat Bijlee
Bharat Bijlee is one of the leaders in the electrical engineering industry in India. The main business segments of the company are transformers, projects, electric motors, elevator systems and drives. The company is based in Mumbai and has branches in 13 Indian cities. As per the management, the company has one of the highest levels of repeat orders in the industry. The company’s manufacturing facilities are located on a 1,93,000 sq metres property with a working area of approximately 50,000 sq metres in Airoli, Navi Mumbai. The free reserve for the company stands at Rs 312.94 crore and the equity capital base stands at Rs 5.65 crore as of FY12. With this capital base the free reserve per share comes out to Rs 553.88. On an YTD basis the stock has shown muted performance and remained flat by gaining a mere 4.80 per cent.

3M India
3M India is engaged in the manufacture and trade of various products for healthcare, industrial, display and graphics. Its industrial and transportation business segment offers industrial tapes and adhesives, abrasives, specialty materials and components, to name a few. The company’s consumer and office business segment provides utensil care, floor care, and wiping products. 3M India’s display and graphics business segment provides moulded plastic products for road furniture and polymer and weather-resistant materials for traffic safety products. The company was formerly known as Birla 3M and changed its name to 3M India in December 2002. The free reserve for the company stands at Rs 583.40 crore and the equity capital base stands at Rs 11.27 crore as of FY12. With this capital base the free reserve per share comes out to Rs 517.66. On an YTD basis the scrip yielded a return of 8.01 per cent.