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Market Cap is Market Cap is Key Key Indicates - your Size…..…... Works as - your Currency….…. Helps in Acquisitions/Mergers…….. Attracts - Clients, Employees etc…….…. Creates an aura for your company…..…..…..

Market Cap is Key

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Market Cap is Key. Indicates - your Size…..…... Works as - your Currency….…. Helps in Acquisitions/Mergers…….. Attracts - Clients, Employees etc…….…. Creates an aura for your company…..…..…. Market Cap…..Market determined. - PowerPoint PPT Presentation

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Page 1: Market Cap is Key

Market Cap is KeyMarket Cap is Key

Indicates - your Size…..…...Works as - your Currency….….

Helps in Acquisitions/Mergers……..Attracts - Clients, Employees etc…….

….Creates an aura for your

company…..…..…..

Page 2: Market Cap is Key

Market Cap…..Market Market Cap…..Market determineddetermined

Market Cap is a function of capital market and your market price / valuation will drive your market Cap……….

So This could be well understood and explained by a market Pandit only……

Stock prices and valuations takes in to account much more then just financials of a company.

Example – many qualitative aspects…….

Page 3: Market Cap is Key

Market Cap….Why its so Market Cap….Why its so important?important?Its indicative of your company’s size and

weightage in corporate world.It attracts investors, particularly large

institutions or funds, who have Market Cap criteria for investment.

Lenders, suppliers, Employees and even smart consumers, consider this aspect.

It is your currency for acquisition or mergers.

Its critical in fund raising, JVs, Alliances, tie-ups and attracting Franchises/Marketing networks.

Page 4: Market Cap is Key

What’s your role in Market What’s your role in Market Cap?Cap?

As CEO/CMD, you have a key role to - Protect and Improve the Market cap of your company.

So, Are you doing the right things to protect Market cap or improve the same?

You shouldn't do any thing to destroy your co’s market cap.

Do you know, what …? can affect your market cap.

It could be some of management’s loose statement, public behavior, your attitude towards – your Customers, employees or stake holders etc etc.

Page 5: Market Cap is Key

What you are doing for Market What you are doing for Market CapCapDo you have Market Cap in your mind? ;

while taking the strategic decisions?Do you consider what will happen to

your market cap, while taking any Policy decision, regarding – expansion or diversification?

Do you think about market cap, when you deal / interact with the external world [Corporate Communications].

Do you really consider Market Cap, while taking any accounting policy deviations etc?

Page 6: Market Cap is Key

Market Cap…..key focusMarket Cap…..key focusFor a company, Market cap is very

important - but it may not be a focus area for ignorant top management.

Market cap improvement should be a focus for team at top, at all times and destruction of market cap should be avoided as for as possible.

This ideology must be nurtured in minds of top executives and desired actions should be taken to keep market cap outlook always in mind.

Special sessions should be held to sensitize the top team to understand the importance of improving Market Cap and things affecting market cap.

Page 7: Market Cap is Key

Good Governance……is Good Governance……is keykey

Good governance…….be it in - Accounting practices, or strategic decision making or delivering value to customers, employees or shareholders; are key to Market cap enhancement.

Be fare to all – customers, employees, shareholders as well as to Regulatory and Revenue authorities…….

Social / Welfare spending or concerns may also be added.

Those who ignored all or some of them get the reflection of same in the Market Cap………..

Page 8: Market Cap is Key

Good Governance……is Good Governance……is keykey

Clarity of Goal or mission and vision of company [if not define – where company will go in next decades]

Complete Plan or strategy to achieve the defined goal or vision.

Absolute absorption of adopted plan /strategy by top management team to execute plan in time bound manner.

Ethical way / manner of achieving plan targets.

Efficient execution planning & ability.

Page 9: Market Cap is Key

Sustainability…….is mustSustainability…….is must Business Sustainability:Is your business has long term

sustainable growth potential?What are competing / substituting ,

products or technologies, which can affect your future growth potential?

Any future developing or emerging product /technology, can affect your business materially?

If yes / possible? Then whether you have thought out some sustainable / credible diversification plan?

If so, fine tune it and start working……..

Page 10: Market Cap is Key

Sustainability…….is mustSustainability…….is must Management Sustainability:Had you ever tried to asses the management’s

- competence, capability, bandwidth or weakness?

If not get it done fast…analyze strengths / weakness.

Are you doing enough, to improve skill set of top management team? For top management team Organise -Trainings / seminars / short term skill development programs etc

Is your company managed professionally or individually? Professionalize the management…by delegation of powers with accountability.

Management’s expertise and skill will lead him to top positions in – Industry Associations / Policy Influencing Govt committees etc

Page 11: Market Cap is Key

What we OfferWhat we Offer

Help you to - know and understand impact of various management actions, decisions on market cap of your company, before you announce them….

Enable you to avoid investor unfriendly decisions, which can destroy market cap of your company.

Warn you against any silly strategic decision or announcement, which can destroy image and Market Cap of your Company.

Act as top management’s confident advisor to protect and enhance the Market Cap.

Page 12: Market Cap is Key

What we can Offer……What we can Offer……

Guide you about Market Cap protection and improvement.

To do right things for image build up.To do right things for investors /

Analysts interactions.Help you find right PR / IR agencies to

manage investor relations.Suggest right Web managers or Media

managers.Enable exposure to Buss. TV and print

media exposure.

Page 13: Market Cap is Key

What we can Offer……What we can Offer……

We can also enable your interaction with research analysts [via IR agency], across brokerages and prepare stock research reports for wider investor understanding.

Encourage analysts and investors to understand more about your company and value it rightly.

Help you to present yourself in better way, to analysts / Investors community during interactions.

Broadly guiding you in managing Investor/ Analyst’s interactions, to improve image, valuations and finally Market cap of company.

Page 14: Market Cap is Key

ConfidentialityConfidentiality

We take few selected assignments, where we think management is serious in improving Market Cap, by taking right steps.

In the whole process CEO/CMD can get advice confidentially - in person, any time from our Chief Mentor/Advisor.

Most of the advice could be in personal meeting only, to maintain confidentiality of the company.

Chief Mentor will give one meeting monthly and additional meetings, on demand plus available on phone any time.

Page 15: Market Cap is Key

Our ProfileOur ProfileKey mentor / Advisor – Mr. D D Sharma, has

vast [20 years] experience in Capital Market, as HOD for research, sales and Advisor to HNI Investors & Corporate imvestors.

He understands – psychology & mentality of Investors / Analysts, as well as impacts of strategic decisions on market if not conveyed in right spirit.

He will enable you to avoid Market Cap destructive policies or strategic plans for companies.

Help you shore up corporate image and market cap of company over next 1-3 years.

Avoid silly mistakes and actions, which can destroy Market Cap of the company.