Rate cut not so good news for cash-rich companies like Coal India, Hindustan Zinc, Nalco, Sanofi India

A sharp rate cut may help in the overall economic recovery, but could hurt companies that are sitting on cash. A dip in rates shrinks interest income that adds to their bottom lines.

Companies such as Coal India, Hindustan Zinc, Nalco, Sanofi India and Pfizer fall in this category. They are struggling to deliver meaningful growth and a large slice of their profit comes from interest income.

For instance, 30% of the Coal India's profit before tax was contributed by interest income in 2014-15. Most of these companies are in mining or pharmaceuticals.

Analysts say growth of mining companies may stay muted due to low commodity prices while pharma MNCs with India focus are being nudged by regulators to lower product prices. Low valuation may limit the downside for these stocks but a decent return looks unlikely.