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
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…….
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Market Cap….Why its so important?
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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.
What’s your role in Market Cap?
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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.
What you are doing for Market Cap
Do 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?
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Market Cap…..key focus
For 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.
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Good Governance……is key
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………..
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Good Governance……is key
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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.
Sustainability…….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……..
Sustainability…….is must
Management Sustainability:
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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
What 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.
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What we can Offer……
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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.
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.
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Confidentiality
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.
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Our Profile
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Key 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.