India holds the second position globally, following the United States, for the number of companies consistently posting a return on equity (ROE) above 20% for over a decade, according to a report by DSP Mutual Funds. This performance underscores the strength of Indian businesses and the solid fundamentals that are driving the country’s stock market success. The report highlights that this consistent ROE is a result of the financial health and operational efficiency of Indian companies, rather than relying on popular market narratives.
The report also emphasized the steady growth in the book value of Indian companies, which has been pivotal in their success. It revealed that more than 75% of Indian companies have experienced positive book value growth, even in challenging economic conditions. Notably, 39 companies have shown consistent book value growth over the past 20 years, with seven of them maintaining uninterrupted growth. These resilient companies have weathered global crises, including the 2008 financial downturn and the COVID-19 pandemic, reinforcing India’s prominent role in the global financial landscape.
