India second only to U.S. in number of consistent high-performing companies: Report
- IBEF
- December 12, 2024
India ranks second globally, after the United States, in the number of companies consistently achieving a return on equity (ROE) exceeding 20% for more than a decade, according to a report by DSP Mutual Funds. This performance highlights the strength of Indian businesses and the robust fundamentals driving the country's stock market outperformance. The report suggests that India's stock market success is rooted in companies' solid financial health and efficiency rather than the influence of popular narratives. The report stresses that consistent ROE performance reflects underlying strength, which is crucial for long-term growth.
The report further emphasised that steady increases in the book value of Indian companies have played a key role in their success. It noted that over three-fourths of Indian companies have experienced positive book value growth, even during economic challenges. Notably, 39 companies have shown positive book value growth over the last 20 years, with seven maintaining uninterrupted growth. These companies have demonstrated resilience during global crises such as the 2008 Global Financial Crisis and the COVID-19 pandemic, reinforcing India's position as a key player in the global financial landscape.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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