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Market Cap is Key

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.

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Market Cap is Key

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  1. 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…..…..…..

  2. 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…….

  3. Market Cap….Why its so 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.

  4. What’s your role in Market 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.

  5. 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?

  6. 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.

  7. 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………..

  8. Good Governance……is key • 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.

  9. 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……..

  10. Sustainability…….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

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. Our Profile • 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.

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