Indian companies tackle inflation better than global peers: Report

Vinson Kurian | Updated on: Jun 15, 2022


Burgundy Private Hurun India says the value of four listed unicorns declined during the six months ending April 30

Total value of the top 500 companies in India increased marginally by two per cent to ₹233-lakh crore from ₹221-lakh crore as of October 30, 2021, according to the Burgundy Private Hurun India 500-Special Report.

These companies performed better than the Sensex and leading global indices during a six-moth-period despite concerns over inflation, war, and rate hikes.

Burgundy Private, the private banking business of Axis Bank, and Hurun India launched the Special Report, a list of the 500 most valuable non-state-owned companies in India on Wednesday. This updated special list tracks changes in the value of the top 500 during the six-month period from October 30, 2021 to April 30, 2022, after the first list was released.

Capitalisation, valuations

The original 2021 list was released on December 9, 2021, featuring companies ranked according to their value, defined as market capitalisation for listed companies, and valuations for non-listed companies. The cut-off date used for the special report is April 30, 2022.

The value of four listed unicorns — Nykaa, Zomato, Paytm and Policybazaar — declined by ₹1,61,007 crore during the review period. Paytm was the worst performer having lost 63 per cent (₹63,666 crore) to touch a value of ₹37,724 crore. Only listed unicorn Delhivery performed well, gaining 65 per cent (₹14,495 crore) to touch a value of ₹37,095 crore.

Defining domestic events

To make it to the special report, companies required a value of ₹5,800 crore, equivalent to $760 million. Apart from the global events mentioned, the review period saw the Tata Group acquire a 100 per cent stake in Air India through its subsidiary; India achieve the milestone of administering one billion Covid-19 vaccine doses; and shares of Paytm crash 27 per cent on the first day of trading after a historic IPO. It is among the biggest listing day loss in the history of the Indian stock market.

Apurva Sahijwani, Executive Vice-President and Head-Burgundy Private, Axis Bank, said, “The companies faced formidable head winds of rising oil and commodity prices as a consequence of the Russia-Ukraine conflict and an interest rate reversal. Still, they have performed better than their global counterparts.”

Sensex holds on its own

Anas Rahman Junaid, Managing Director and Chief Researcher, Hurun India noted the the Nasdaq had declined 16 per cent during the review period, while Hang Seng dropped 19 per cent. The Sensex reported only a four per cent decline.

The Burgundy Private Hurun India 500 come from 15 States led by Maharashtra, Karnataka and Tamil Nadu followed by Haryana, Gujarat, and Delhi. By city, Mumbai led with 159 companies, followed by Bengaluru with 59, Gurugram with 38 and Chennai with 36.

Published on June 15, 2022
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