June 2022, Mumbai: Burgundy Private, Axis Bank’s Private Banking Business and Hurun India launched the ‘Burgundy Private Hurun India 500-Special Report’, a list of the 500 most valuable non- state-owned companies in India. This updated special list tracks changes in the value of the top 500 Indian companies during the six-month period (from October 30, 2021- April 30, 2022) after the first list was released. The 2021 Burgundy Private Hurun India 500 list was released on December 9, 2021. It is a list of the 500 most valuable non-state-owned companies in India, ranked according to their value, defined as market capitalization for listed companies, and valuations for non-listed companies. The cut-off date used for the special report is April 30, 2022.
To make it to the ‘Burgundy Private Hurun India 500-Special Report’ , companies required a value of INR5,800 crores, equivalent to US$760mn.
The period saw dramatic global events like the Russia-Ukraine war (24 February 2022) and the interest rate hike (March 16, 2022) by the USA Federal Reserve. Meanwhile in the domestic market during the six month review period, Tata Group acquired a 100% stake in Air India from the Indian Government through its subsidiary Talace Private Ltd (8 October 2021), India achieved the milestone of administering one billion Covid-19 vaccine doses (21 October 2021) and after the historic IPO, the shares of Paytm crashed 27% on the first day of trading (18 November 2021). It is among the biggest listing day loss in the history of the Indian Stock market.
The total value of the top 500 companies in India increased marginally by 2% to INR 233 lakh crore from INR 221 lakh crore as of October 30,2021. And despite the inflationary concerns, war, and rate hikes, the companies in the ‘Burgundy Private Hurun India 500-Special Report’ performed better than SENSEX and other global indices.
Apurva Sahijwani, EVP and Head – Burgundy Private, Axis Bank said:
“In the first half of CY23, the 2021 Burgundy Private Hurun India 500 companies faced formidable head winds of rising oil and commodity prices as a consequence of the Russia-Ukraine conflict and an interestrate reversal cycle. It is noteworthy that despite the many challenges faced, Indian companies have performed better than their global counterparts. We look forward to seeing the rankings in the next edition of the Burgundy Private Hurun India 500, should there be difficult persisting macro conditions.”
Anas Rahman Junaid MD and Chief Researcher, Hurun India said:
“Despite two major events like the Russia-Ukraine war and the interest rate hike by the USA Federal Reserve, companies in the Burgundy Private Hurun India 500 – Special Report gained 2% during the six months. NASDAQ declined 16% during the review period, while HANG SENG dropped by 19%. SENSEX reported only a 4% decline. Indian companies have weathered the storm and performed better than their global peers. It shows the inherent strength and depth of the Indian economy. Hurun India is delighted to partner with Burgundy Private, Axis Bank’s Private Banking Business to release the Burgundy Private Hurun India 500 – Special Report, which tracks the changes in the value of the top 500 Indian companies during the last six months.”
“Value is perhaps the best way to measure a company’s performance, since value takes into account not just the current performance of a company but also its future potential. These companies represent the biggest opportunity for tax revenues, quality employment and industry leadership,” he said.“The stories of these companies tell the story of the modern Indian economy”, Anas added.
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.
Interestingly, value of four listed Unicorn’s- Nykaa, Zomato, Paytm and Policybazaar -declined by INR
1,61,007 crore during the review period. Paytm was the worst performer having lost 63% (INR 63,666
crore) to touch a value of INR 37,724 crore. Only listed Unicorn Delhivery performed well during the period and gained 65% (INR 14,495 crore) to touch a value of INR 37,095 crore.Hurun is closely tracking the performance of tech companies like Paytm where valuations have gone
“We have not benchmarked and made corrections to the value of the unlisted tech companies in the current list. However, we are actively considering devaluing some companies in the next list if the macro concerns get prolonged,” Anas concluded.
The Burgundy Private Hurun India 500-Special Report is a list of the 500 most valuable companies that
are headquartered in India. Government/ State-owned companies and subsidiaries of foreign companies
are excluded. Although the cut-off date for the list is April 30,2022, we have taken an exception for Aether
Industries and Campus Activewear for which we have considered the closing market cap of the listing day. The aforementioned companies were in the process of going public/ getting listed during the cut-off
Valuing private companies is as much an art as it is a science. Surely, Hurun India may have missed some companies, but our endeavour is to develop the most comprehensive report of its kind with an objective to identify and acknowledge India’s top businesses. Hurun Report’s team of researchers have travelled the length and breadth of the country, cross-checking information with entrepreneurs, industry experts, journalists, bankers, and other sources of publicly available data.
For unlisted companies, Hurun Research’s valuation is based on a comparison with their listed equivalents using prevailing industry multiples such as Price to Earnings, Price to Sales, EV to sales, EV to EBITDA. Other methodologies such as Discounted Cash Flow and Tobin’s Q are also used. In certain cases of early- stage companies, Hurun used the First Chicago Method for valuation. Financial information used is from the latest available annual reports or audited financial statements.