It is rightly said that cash is king. With a healthy cash balance, the company can meet its financial obligations, such as paying employees and vendors on time and in full, while also building trust with the company’s stakeholders. In this article, we will look at three companies whose cash balance is higher than their market capitalization.
1. Aditya Birla Money Ltd
Aditya Birla Money Limited provides a variety of financial services in India, such as stock broking, portfolio management, and depository services. It deals in equities, derivatives, currencies, and commodities on principal exchanges such as NSE, BSE, MCX, and NCDEX. The company offers different trading platforms like TradeLite, Mobile Invest, AB TRADE, and Express Trade. It also delivers mutual funds, ETFs, insurance, loans, and investment products such as NPS, SGBs, and IPOs.
With a market capitalisation of Rs 923 crores, the shares of Aditya Birla Money Ltd are currently trading at Rs 163 per share, down by 46.2 percent from its 52-week high of Rs 304 per share. It has a P/E ratio of 12.44x, lower than the industry P/E ratio of 14.47x, signaling likely under-valuation.
Its revenue decreased by 14 percent YoY from 114 crores in Q4 FY24 to 98 crores in Q4 FY25. Its net profit declined by 44 percent YoY from 16 crores in Q4 FY24 to 9 crores in Q4 FY25. As per the data available Aditya Birla Money Ltd has a cash balance of Rs 993 crore against its market capitalization of Rs 923 crore.
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2. 5Paisa Capital Ltd
5paisa Capital Limited is a technology-enabled financial services organization that deals in online trading on MCX, BSE, and NSE. It offers discounted stock broking, mutual fund distribution, depository services, and distributes bonds, insurance products, etc. The organization also deals in investment advisory, equity research, and peer-to-peer lending through its web portal and mobile application.
With a market capitalization of Rs 1,251 crore, the shares of 5Paisa Capital Ltd are currently trading at Rs 400 per share, down by 34 percent from its 52-week high of Rs 607.05 per share. It has a P/E ratio of 18.34x, higher than the industry P/E ratio of 14.47x, signaling overvaluation.
Its revenue decreased by 37 percent year-on-year from Rs 113 crores in Q4 FY24 to Rs 71 crores in Q4 FY25. Net profit surged by 66.67 percent year-on-year from Rs 6 crores in Q4 FY24 to Rs 10 crores in Q4 FY25. As per the data available, 5Paisa Capital Ltd has a cash balance of Rs 1,337 crore against its market capitalization of Rs 1,251 crore.
3. SMC Global Securities Ltd
SMC Global Securities Limited is a diversified financial services company providing broking, insurance, and financing solutions in India and overseas. It provides trading in equities, commodities, and currencies, as well as portfolio management, wealth advisory, and investment banking. It also provides life and non-life insurance products distribution.
With a market capitalization of Rs 1,214 crore, the shares of SMC Global Securities Ltd are currently trading at Rs 116 per share, down by 36.6 percent from its 52-week high of Rs 183 per share. It has a P/E ratio of 8.34x, which is lower than the industry P/E ratio of 14.47x, signaling undervaluation.
Revenue declined by 17.28 percent year-on-year from Rs 509.42 crores in Q4 FY24 to Rs 421.47 crores in Q4 FY25. Net profit declined by 94 percent YoY from 66.24 crores in Q4 FY24 to 4.09 crores in Q4 FY25. As per the data available from SMC Global Securities Ltd, the company has a cash balance of Rs 1,976 crore against its market capitalization of Rs 1,214 crore.
Written by Satyajeet Mukherjee
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