ET 500 companies list 2022

Economics Times has released the list of the of most valuable companies of India. It was topped by Life Insurance Corporation. The name of list is ET 500. The list contains the most investible companies with good fundamentals and future ready models.

The top ten companies in the list are:

1. Life Insurance Corporation
2. Reliance Industries Limited
3. Indian Oil Corporation
4. Oil and Natural Gas Corporation
5. State Bank of India
6. Hindustan Petroleum Corporation
7. Bharat Petroleum Corporation
8. Tata Motors
9. Tata Steel
10. Rajesh exports

In 2021 the list was topped by Reliance Industries Ltd. LIC was not in the list of 2021.

The factors on which the companies are short listed :

• Companies whose net profits grew at a compounded annual growth rate or CAGR of over 20% in the last five years.
• Then companies from manufacturing and capital-intensive industries whose operating cash flow, excluding interest had grown at a CAGR of over 20% during this period are short listed. This was done to assess the consistency in cash flows with net profits.

Basic understanding of the terms CAGR and Operating Cash Flow:

CAGR: Compounded annual growth rate : It is the annual growth rate of revenue growth between two given years.

Operating cash flow reflects the ability of a company to generate enough cash to sustain its operations after providing for various operational expenditures. This makes it a comprehensive parameter of analysis when compared with net profit of a company.

Write the answers in the comment section:

1. Who is the chairman of LIC?
2. Where is the headquarters of LIC?

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