Top Public Sector Companies

Air India

Bharat Coking Coal Limited

Bharat Dynamics Limited

Bharat Earth Movers Limited

Bharat Electronics Limited

Bharat Heavy Electricals Ltd.

Bharat Petroleum Corporation

Bharat Refractories Limited

Bharat Sanchar Nigam Ltd.

Bongaigaon Refinery & Petrochemicals Ltd.

Broadcast Engineering Consultants India Ltd

Cement Corporation of India Limited

Central Warehousing Corporation

Chennai Petroleum Corporation Limited

Coal India Limited

Cochin Shipyard Ltd.

Container Corporation Of India Ltd.

Cotton Corporation of India Ltd.

Dredging Corporation of India Limited

Engineers India Limited

Ferro Scrap Nigam Limited

Food Corporation of India

GAIL (India) Limited

Garden Reach Shipbuilders & Engineers Limited

Goa Shipyard Ltd.

Gujarat Narmada Valley Fertilizers Company Limited

Haldia Petrochemicals Ltd

Handicrafts & Handloom Exports Corporation of India Ltd.

Heavy Engineering Corp. Ltd

Heavy Water Board

Hindustan Aeronautics Limited

Hindustan Antibiotics Limited

Hindustan Copper Limited

Hindustan Insecticides Ltd

Hindustan Latex Ltd.

Hindustan Petroleum Corporation Ltd.

Hindustan Prefab Limited

HMT Limited

Housing and Urban Development Corporation Ltd. (HUDCO)

IBP Co. Limited

India Trade Promotion Organisation

Indian Airlines

Indian Oil Corporation Ltd

Indian Rare Earths Limited

Indian Renewable Energy Development Agency Ltd.

Instrumentation Limited, Kota

Ircon Internationl Ltd.

ITI Limited

Kochi Refineries Ltd.

Konkan Railway Corporation Ltd.

Krishna Bhagya Jala Nigam Ltd

Kudremukh Iron Ore Company Limited

Mahanadi Coalfields Limited

Mahanagar Telephone Nigam Limited

Mangalore Refinery and Petrochemicals Limited

Manganese Ore India Limited

Mazagon Dock Limited

MECON Limited

Mineral Exploration Corporation Ltd.

Mishra Dhatu Nigam Limited

MMTC Limited

MSTC Limited

National Aluminium Company Ltd.

National Building Construction Corp. Ltd.

National Fertilizers Ltd.

National Film Development Corporation Ltd.

National Hydroelectric Power Corporation Ltd.

National Informatics Centre Services Incorporated

National Insurance Company Ltd

National Mineral Development Corporation Limited

National Projects Construction Corporation Limited

National Research Development Corporation

National Small Industries Corporation Ltd

National Thermal Power Corporation

Neyveli Lignite Corporation

North Eastern Electric Power Corporation Ltd

Northern Coalfields Limited

Nuclear Fuel Complex (NFC)

Nuclear Power Corporation of India Limited

Oil & Natural Gas Corporation Ltd.

Oil India Limited

Power Finance Corporation Ltd.

Power Grid Corporation of India

Praga Tools Limited

Projects & Development India Ltd

PTC India Limited

RailTel Corporation of India Ltd.

Rashtriya Chemicals & Fertilizers Ltd

Rashtriya Ispat Nigam Limited

RITES Limited

Rural Electrification Corporation Ltd

Sardar Sarovar Narmada Nigam Ltd.

Shipping Corporation of India

Sponge Iron India Limited

Steel Authority of India Limited

Tamil Nadu Newsprint & Papers Ltd.

Telecommunications Consultants India Limited

The Fertilisers and Chemicals Travancore Limited

The State Trading Corporation of India Ltd.

Videsh Sanchar Nigam Limited

Water and Power Consultancy Services (India) Limited

The List of Public Sector Undertakings in India

Name of PSU	Industry	Headquarters
Air India Air Transport Services Limited	Transport	New Delhi
Air India Charters Limited	Transport	Mumbai
Air India Limited	Transport	New Delhi
Airline Allied Services Limited	Transport	New Delhi
Airports Authority Of India Limited	Transport	New Delhi
Andaman & Nicobar Islands Forest and Plantation Development Corporation Limited	Forestry	Port Blair
Andrew Yule & Company Limited	Heavy Industry, Engineering	Kolkata
Antrix Corporation Limited	Space, Communication	Bangalore
Artificial Limbs Manufacturing Corporation of India	Manufacturing, Rehabilitation	Kanpur
Assam Ashok Hotel Corporation Limited	Tourism	New Delhi
Balmer Lawrie & Company Limited	Manufacturing	Kolkata
Balmer Lawrie Investments Limited	Financing	Kolkata
Braithwaite, Burn & Jessop Construction Company Limited	Construction	Kolkata
BEL Optronic Devices Limited	Research and Development, Electronics	Pune
Bengal Chemicals & Pharmaceuticals Limited	Pharmaceuticals	Kolkata
Bharat Bhari Udyog Nigam Limited	Construction, Finance	Kolkata
Bharat Coking Coal Limited	Mining	Dhanbad
Bharat Dynamics Limited	Manufacturing, Defense	Hyderabad
Bharat Earth Movers Limited	Mining, Transportation	Bangalore
Bharat Electronics Limited	Defence, Electronics	Bangalore
Bharat Heavy Electricals Limited	Manufacturing	New Delhi
Bharat Heavy Plate & Vessels Limited	Manufacturing, Oil and Gas	Visakhapatnam
Bharat Immunologicals and Biologicals Corporation Limited	Pharmaceuticals	Bulandshahar
Bharat Petroleum Corpn. Limited	Petroleum	Mumbai
Bharat Pumps & Compressors Limited	Manufacturing	Allahabad
Bharat Refractories Limited	Manufacturing	New Delhi
Bharat Sanchar Nigam Limited	Communications	New Delhi
Bharat Wagon and Engineering Limited	Manufacturing	Patna
Bharat Yantra Nigam Limited	Manufacturing, Financing	Allahabad
Biecco Lawrie Limited	Petroleum, Manufacturing	Kolkata
Birds Jute and Exports Limited	Textiles, Manufacturing	Kolkata
Bongaigaon Refinery and Petrochemicals Limited	Oil and gas, Refinery	Bongaigaon
Brahmaputra Valley Fertilizer Corporation Limited	Fertilizer, Manufacturing	Dibrugarh
Braithwaite and Company Limited	Manufacturing, Railways	Kolkata
Bridge an Roof Company (India) Limited	Construction	Kolkata
British India Corporation Limited	Textiles, Manufacturing	Kanpur
Broadcast Engineering Consultants India Limited	Communications	New Delhi
Burn Standard Company Limited	Construction, Engineering	Kolkata
Cement Corpn. Of India Limited
Central Coalfields Limited	Mining	Ranchi
Central Cottage Industries Corpn. Of India Limited
Central Electronics Limited	Electronics Manufacturing	Ghaziabad
Central Inland Water Transport Corpn. Limited
Central Mine Planning & Design Institute Limited
Central Warehousing Corpn.
Certification Engineers International Limited
Chennai Petroleum Corporation Limited
Coal India Limited	Mining	Kolkata
Cochin Shipyard Limited	Marine Engineering	Kochi
Container Corporation Of India Limited
Cotton Corpn. Of India Limited
Donyi Polo Ashok Hotel Limited
Dredging Corpn.Of India Limited
Eastern Coalfields Limited	Mining	Asansol
Educational Consultants ( India ) Limited
Electronics Corpn. Of India Limited
Engineering Projects (India) Limited
Engineers India Limited
Ennore Port Limited	Port	Chennai
Export Credit Guarantee Corpn.Of India Limited
Fci Aravali Gypsum & Minerals (India) Limited
Ferro Scrap Nigam Limited
Fertilizer Corpn. Of India Limited
Fertilizers & Chemicals (Travancore) Limited
Food Corporation of India	Wholesale, Agricultural products	New Delhi
Gail (India) Limited	Naturl Gas	New Delhi
Garden Reach Shipbuilders & Engineers Limited
Goa Shipyard Limited	Defence, Manufacturing	Vasco da Gama, Goa
Handicrafts & Handloom Exports Corp. Of India Limited
Heavy Engineering Corpn. Limited
Hindustan Aeronautics Limited	Defence, Manufacturing	Bangalore
Hindustan Antibiotics Limited
Hindustan Cables Limited
Hindustan Copper Limited
Hindustan Fertilizer Corpn. Limited
Hindustan Fluorocarbons Limited
Hindustan Insecticides Limited
Hindustan Latex Limited
Hindustan Newsprint Limited
Hindustan Organic Chemicals Limited
Hindustan Paper Corporation Limited
Hindustan Petroleum Corpn. Limited	Petroleum	Mumbai
Hindustan Photo Films Manufacturing Co. Limited
Hindustan Prefab Limited
Hindustan Salts Limited
Hindustan Shipyard Limited	Manufacturing	Visakhapatnam
Hindustan Steel Works Costn. Limited
Hindustan Vegetable Oils Corpn. Limited
Hmt (International) Limited	Engineering	Bangalore
Hmt Bearings Limited	Manufacturing	Bangalore
Hmt Chinar Watches Limited	Manufacturing	Bangalore
Hmt Limited	Manufacturing	Bangalore
Hmt Machine Tools Limited	Manufacturing	Bangalore
Hmt Watches Limited	Engineering	Bangalore
Hooghly Dock And Port Engineers Limited
Hooghly Printing Company Limited
Hotel Corpn. Of India Limited
Housing and Urban Development Corporation Limited	Urban development	New Delhi
Hscc (India) Limited
ITI Limited	Communications	Bangalore
IBP Company Limited	Petroleum	Kolkata
Idpl (Tamil Nadu) Limited
India Tourism Dev. Corpn.Limited
India Trade Promotion Organisation	Trade	New Delhi
Indian Airlines Limited	Transport	New Delhi
Indian Drugs & Pharmaceuticals Limited
Indian Medicines & Pharmaceutical Corpn. Limited
Indian Oil Corporation Limited	Petroleum	New Delhi
Indian Oil Technologies Limited Manufacturing	Faridabad
Indian Railway Catering And Tourism Corpn. Limited
Indian Railway Finance Corporation Limited	Finance	New Delhi
Indian Rare Earths Limited	Mining	Mumbai
Indian Renewable Energy Devt.Agency Limited
Instrumentation Limited
Ircon International Limited
J & K Mineral Development Corpn. Limited
Jute Corpn. Of India Limited
Karnataka Antibiotics & Pharmaceuticals Limited
Karnataka Trade Promotion Organisation
Konkan Railway Corporation Limited	Transport	Navi Mumbai
Kudremukh Iron Ore Co.Ltd
Kumarakuppa Frontier Hotels Limited
[M M T C Limited]MMTC Limited
M S T C Limited
Madhya Pradesh Ashok Hotel Corpn. Limited
Madras Fertilizers Limited
Mahanadi Coalfieldls Limited	Mining	Sambalpur
Mahanagar Telephone Nigam Limited	Communication	New Delhi
Maharashtra Elektrosmelt Limited
Mangalore Refinary & Petrochemicals Limited	Refinery, Petrochemicals	Mangalore
Manganese Ore(India) Limited
Mazagon Dock Limited	Defence, Manufacturing	Mumbai
Mecon Limited	Engineering Consultancy	Ranchi
Millennium Telecom Limited
Mineral Exploration Corpn. Limited
Mishra Dhatu Nigam Limited
Mumbai Railway Vikas Corporation Limited	Transport	Mumbai
Nagaland Pulp & Paper Company Limited
Narmada Hydroelectric Development Corpn. Limited
National Aluminium Company Limited	Bhubaneswar
National Backward Classes Finance & Development Corp.
National Bldg. Constn. Corpn. Limited
National Fertilizers Limited	Agriculture	NOIDA
National Film Dev. Corpn. Limited	Entertainment	Mumbai
National Handicapped Finance & Devpt. Corpn.
National Handloom Development Corporation Limited
National Hydroelectric Power Corpn.Limited
National Informatics Center Services Incorporated.
National Instruments Limited
National Jute Manufacturers Corporation Limited
National Mineral Development Corpn. Limited	Mining	New Delhi
National Minorities Devp. & Finance Corpn.
National Projects Construction Corpn. Limited
National Research Devp. Corpn.
National Safai Karamcharis' Finance & Devpt. Corpn.
National Scheduled Castes Finance & Devp. Corpn.
National Scheduled Tribes Finance & Devp. Corpn.
National Seeds Corpn. Limited
National Small Industries Corpn. Limited
National Textile Corpn. (Holding Co.) Limited
Nepa Limited
Neyveli Lignite Corporation Limited	Mining, Energy	Neyveli
North Eastern Handicrafts & Handloom Dev.Corpn. Limited
North Eastern Electric Power Corporation Limited
North Eastern Regional Agri. Marketing Corp.Limited
Northern Coalfields Limited	Mining	Singrauli
Ntc(A.Pradesh, Karnataka, Kerala & Mahe)Limited
Ntc(Delhi,Punjab & Rajasthan) Limited
Ntc(Gujarat)Limited
Ntc(Madhya Pradesh)Limited
Ntc(Maharashtra North)Limited
Ntc(South Maharashtra)Limited
Ntc(Tamil Nadu & Pondicherry) Limited
Ntc(Uttar Pradesh)Limited
Ntc(West Bengal,Assam,Bihar & Orissa)Limited
Ntpc Electric Supply Company Limited	Energy	New Delhi
Ntpc Limited	Energy	New Delhi
Ntpc Vidyut Vyapar Nigam Limited	Energy	New Delhi
Nuclear Power Corpn. Of India Limited	Energy	Mumbai
Numaligarh Refinary Limited
Oil & Natural Gas Corporation Limited	Petroleum	Dehradun
Oil India Limited	Petroleum	NOIDA
Ongc Videsh Limited	Petroleum	Dehradun
Orissa Drugs & Chemicals Limited
PEC Limited
Pawan Hans Helicopters Limited	Manufacturing	New Delhi
Pondicherry Ashok Hotel Corpn. Limited
Power Finance Corporation Limited
Power Grid Corporation Of India Limited	Power transmission	New Delhi
Praga Tools Limited
Projects & Development India Limited	Engineering	NOIDA
Pyrites, Phosphates & Chemicals Limited
Railtel Corporation India Limited	Transport	New Delhi
Rajasthan Drugs & Pharmaceuticals Limited
Rajasthan Electronics And Instruments Limited
Ranchi Ashok Bihar Hotel Corpn. Limited
Rashtriya Chemicals And Fertilizers Limited
Rashtriya Ispat Nigam Limited
Richardson & Cruddas(1972) Limited
Rites Limited	Transport	Gurgaon
Rural Electrification Corpn. Limited
Sambhar Salts Limited
Satluj Jal Vidyut Nigam Limited
Scooters India Limited
Semi-Conductor Complex Limited
Shipping Corporation Of India Limited	Transport, Logistics	Mumbai
South Eastern Coalfields Limited	Mining	Bilaspur
Sponge Iron India Limited
State Farms Corporation of India Limited
State Trading Corpn. Of India Limited
Stcl Limited
Steel Authority of India Limited	Manufacturing	New Delhi
Tamil Nadu Trade Promotion Organisation
Telecommunications Consultants (India) Limited
Triveni Structurals Limited
Tungabhadra Steel Products Limited
Tyre Corporation of India Limited
Uranium Corporation of India
Utkal Ashok Hotel Corpn. Limited
Vignyan Industries Limited
Water & Power Consultancy Services(India) Limited
Western Coalfields Limited	Mining	Nagpur

Stock Analysis : Cash Flow Statement

Financial statements comprise three things namely Balance Sheet, Income Statement or Profit/Loss Statement and Cash Flow Statement. Experienced and successful investors say that they rely heavily on financial statements when deciding where to invest. Out of all the three statements, Cash Flow Statement is the very important but widely neglected one by beginners / retail investors. In this article, we will see the difference between these statements while explaining in detail about Cash Flow Statement.

Components and Differences

It is a myth that these statements contain some crazy financial stuff that only Auditors can understand, but in principle these statements are copycat to what we do in our family to manage the family budget (The difference is we do not prepare and do not complicate). Then you might ask what the Auditors do? They are of course essential as the companies get involved in too many transactions and also the company has to follow the laws to comply regulations. Now let’s see what they contain and the differences among the three.

All the three statements are inter-related but they are prepared separately to give clear picture to understand the financial health of the company in three different angles. Balance sheet is the statement that shows the overall financial position of the company at any particular point of time from inception. It has two components namely Assets and Liabilities (Just like what are all the assets our family has and what are the loans and other things that we need to repay). Profit/Loss statement includes Earnings and Expenses so that we can be clear about the Net Income. Cash Flow statements give you the detailed picture of both Cash inflow and Cash outflow of a company under three sections namely operations, investing and financing. All the three statements are equally important but Cash Flow Statement is even more important during the crisis times like what we have now.

The simple diagram below shows the relationship among three and components of these statements. You see a brown color stock investor box which shows that proceeds from the stock sales will be shown under financing section of cash flow but the total money raised through stocks will be shown under equity section of balance sheet. Similarly the bond investor’s box explains that proceeds from bond sales go to financing section of cash flow statement and interest paid to the bond holders go to the income statement while the bond debt goes to the liabilities section of the balance sheet. You can think of similar relationships from the diagram between these three statements.
The three green arrows indicate the three sections of Cash Flow Statement which are operations, investing and financing. The yellow part is the components in the income statement.

Why Cash Flow Statement is more important?

Assume a hypothetical situation where you have two neighbors Akash and Nilesh and you are a man with common sense. Akash works in L&T as an Assistant and earns Rs. 300 / day and he is able to meet daily family expenses and other costs but he does not have any major assets and debt. Nilesh earns Rs. 500 / day and he has a house but has taken a loan from HDFC and he is struggling to meet even family expenses. They both come and ask you Rs. 5000 and promise you that they would return it in a month. Who would you believe and give loan? Common sense investors would give it to Akash. In this particular situation, you would not be reading any financial statements to make a decision as you know these individuals and their financial situation. Nilesh might have stronger balance sheet than Akash but Akash has better cash flow and gets your confidence.

It’s the same case in corporate as well where experienced investors give more importance to the cash segment as it is very important for the day to day operations of the company. So, people think it is better to invest in a company which can survive in short term rather than a famous corporate giant who is all set to fail. In my view, you do not need to study complicated books to understand the basic principles which remain the same both at household level and firm level. That’s why legendary investors like Peter Lynch and Warren Buffet say that a guy with common sense will show better returns than many of the Analysts.

Cash Flow Statement

As I have pointed out earlier, Cash Flow Statement includes operational activities, financing activities and investing activities.



The above table is a cash flow statement from Satyam for the year 1999 and is shown as an example. The basic idea remains very simple. We deduct all cash outflows from cash inflows and show the net cash available for the company operations in a Cash Flow Statement. But I will explain one by one with respect to this example. Figures in parenthesis indicate cash outflows and figures without parenthesis show cash inflows.

1. Operating Activities

Section A in the table contains operating income and it starts with net income before interest, tax and after extraordinary items. The operating income usually comes from selling products and services. Since, the net income has been calculated already by excluding extraordinary items like depreciation, and loss on sale of fixed assets; they have added it back to remove the effect. Extraordinary items may include Amortization and many other things (All non-cash items), but in this example they have included only two. Then they have added whatever cash inflow they had and deducted all the cash outflows they had to finally arrive at Net Cash Flow from operating activities which was Rs. 9,782 Lakhs in 1999(Hope it was not a fictitious statement) . In short, operating activity is a Money raising activity.

2. Investing Activities

Investing activities (Section B) include activities that are carried out by the company for future growth either upgrading facilities or buying equipments or fixed assets. I am not going to explain what is in the table again. But the idea under this section is again to calculate the amount invested for the company and income if any and then arrive at net investment amount which stood at Rs. 16,574 Lakhs.

3. Financing Activities.

All the items related to the core finance come under this category in Section C including loans companies get from banks, raising money through stocks sale, IPO, dividends etc. Here too the idea is to calculate the net amount raised by deducting outflows from inflows. In the example Satyam had raised Rs. 9,302 Lakhs in 1999 through financing activities. This is again a Money Raising activity.

Finally to arrive at Net Cash / Cash Equivalents, you add Section A and Section C. In this example it was Rs. 19,084 Lakhs (Rs. 9782 + Rs. 9302). Then deduct the amount invested for that year from Rs. 19,084 Lakhs which is Rs. 19,084 – Rs. 16,574 = Rs. 2,510 Lakhs. This is the amount you are seeing in the example as well. Since they had Rs. 1,317 Lakhs from the previous year, you are seeing that amount added to this Rs. 2,510 Lakhs to get the final Cash / Cash equivalent of Rs. 3,827 Lakhs.

Cash Flow Statement and it’s relevance to the Stock Investment

We have discussed sufficiently about the basics of cash flow statements. But how it is relevant to our stock investment stand point? In fact I would say Cash Flow is the first important thing in the business without which no one could have started the business. Earnings are important and people value companies based on that. But not many think how a company managed to earn that money? A company with better cash flow in general would generate good earnings and that’s why experienced people go to the root of the problem. In some cases it might not be true (Initial Days, Capital Intensive Business). Company with a better cash position can outsmart peers and can take advantage of special situations.
For example Reliance Capital was late in to the Brokerage business, but they are threatening to rule the brokerage world just by virtue of having more cash flow. I do not think any other brokerage firms would have attained the same growth.
Another example is our fallen baby Satyam (Illegal outflow and Cash inflow shrunk). A company can be worth Rs. 50,000 crores but if it does not have Rs. 500 crores for day to day operations, then it will become bankrupt and is of no worth.
Subhiksha is a success story and within 10 years, the company fetched Rs. 1,500 crore value, but what happened now is a story well known to everyone. Company is in bankruptcy situation. So, cash flow is an important thing that you have to look in to while valuing a company or stock. Of course you have to study the balance sheet as well. Cash flow statement combined with balance sheet might give you a better idea about value when you compare a company and its peers. There are few ratios which you can look at if you do not study the entire statement.

Ratios

1. Price to Cash Flow Ratio
This ratio is similar to our PE Ratio but many think that PC Ratio is more reliable than PE Ratio. PE Ratio can be easily manipulated as it includes non cash items, depreciation etc. while same cannot be said about PC ratio. I do not know which side Raju has manipulated, but in general it is very hard to manipulate the PC Ratio.

Price to Cash Flow Ratio = stock price per share divided by Operating Cash Flow per Share

where, Operating Cash Flow per share = Net operating Cash Flow / Number of Shares

Example: Assume Yes Bank has Rs. 900 crore cash flow and it has 300 crore shares. Then operating cash flow per share would be Rs. 3 and it’s Price to Cash Flow Ratio would be 20 (60/3) based on the current stock price. Like PE Ratio, the interpretation remains the same. Lower the PC Ratio, better the stock value and it is a nice tool to have when you compare companies in the same sector or peers. In spite of the importance, PE Ratio rules the world.

2. Price to Free Cash Flow
It is a similar ratio with stringent guidelines.

Price to Free Cash Flow Ratio = Company Market Capitalization divided by Free Cash Flow

where, Free Cash Flow = Net Income + (Depreciation and Amortization) – (Changes in working Capital + Capital Expenditure)

Higher the P/FCF value, more expensive the company is.

These are the two important ratios which broking firms calculate but you can calculate your own ratios based on what importance you attach to different things.

For example you can calculate Cash Flow to Debt ratio or Cash Flow to Long Term Debt Ratio along the similar lines. But the basic idea remains the same across all the ratios which is better the cash position, better the value.

Conclusion: Cash Flow Statement is as important as balance sheet and PL Statement and serious investors should give at least a glance while making larger investment decisions. This does not mean, companies with better PE and PC ratio will always give you great returns but it is one among various measures you can use to evaluate a company so that you can eliminate the risk to a certain extent. I will try to explain balance sheet ratios and PL statement in another article. Thanks.