Value Research classifies stocks based on their relative market cap. Stocks accounting for 70 per cent of the total market cap of all the listed companies on BSE are classified as large-cap, next 20 per cent as mid-cap while the bottom 10 per cent are called small-caps. A company in 2003 with a market cap of more than Rs 270 crore qualified for the mid-cap category while a market cap of more than Rs 2,500 crore was required to be counted as a large-cap. Currently, a company needs a market cap of more than Rs 2,600 crore be a part of mid-cap category while the required market cap to be classified as a large-cap has shot up to Rs 16,500 crore. While a lot of small-cap companies have graduated to being mid-cap over the years on account of impressive performance, it is still difficult for a small-cap to turn itself into a large-cap. Data of the past decade shows that only two small-cap companies have been able to transform themselves as large-caps in this period - Sesa and Titan. MTNL, though, has the dubious distincion of being the only company which had a climbdown where it slipped from being a large-cap to a small-cap in this while.
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