A Real Measure Of Value

In the year 1986, when I first began this magazine, the era was completely different. There were no computers, no internet and certainly not the SEBI. This left so much to subjectivity that you sometimes wondered if it really was safe to invest. The only feasible and safe avenues were government-sponsored schemes like NSCs, KVPs and to some extent, bank fixed deposits.

As time went by, the markets evolved, companies flourished, sectors emerged and the whole scenario embraced a truly capitalistic flavour. The Indian economy grew in sync with global developments, and in fact, emerged as among the fastest growing in the world. Technology unleashed a new wave of growth, and the whole ecosystem transformed into a platform offering opportunities to all those who were ready to take them. Obviously, the Indian corporate sector took full advantage of this situation and took off at jet speed to compete with the best in the world.

There are two points which lend relevance to the above discussion. One, we as a media house have stayed our course and evolved to keep pace with the times, managing to remain contemporary throughout. The other is the fact that the Indian corporate sector has come a long way from where it began, and stands at a point of inflexion from where it is now rearing to take its next big leap.

Having said that, it is important to take a pause and check how much of value Indian corporates have really created for their stakeholders. There are numerous studies which have attempted to do this. We, at DSIJ, over the 27 years of our existence, have provided investors with a whole lot of insights, guiding them with the best of investment options so as to be able to generate wealth meaningfully.

An anniversary issue holds special importance for any publication, and to make it special, we decided to come up with something that will remain with our readers for a long time to come, both in letter as well as in spirit. We set for ourselves the most challenging task of selecting India’s best value and wealth creators in the Indian corporate arena. This obviously called for an orderly and meticulous evaluation of the Indian corporate sector, so as to be able to separate the wheat from the chaff.

It is here that our long years of experience as a research-based media house stood us in good stead. Building the most intricate of formulae around the many critical parameters of corporate performance evaluation helped us come up with a list of the 50 best companies – the ‘Super 50’.

But India is a land of great magnitude, and it is probably this characteristic which has led to India being hailed as an ‘elephant economy’. Hence, while our research team came up with the top of the top performers in our ‘Super 50’ list, we also had to rank the many other companies which form an active part of the Indian corporate universe. This is what has given us the ‘Elite 100’ of corporate India.

I am sure the insights that have come up from the study will help you understand the value and wealth creation functions in a much better manner.

This is our 27th year, and in these years, we have made sure that we keep ourselves well grounded in the realities of the financial world so as to help our readers reap the benefits of a growing and prospering India. Though we may be facing intermittent hiccups, the overall growth story of the Indian economy remains intact. It is for us and our future generations to recognise the opportunities that come their way in order to ensure that India really achieves the status of a global economic powerhouse.

Before I conclude, it would well make sense to take stock of what is happening on the ground today. The RBI, in its latest meet held on March 19, has slashed the Repo rate by 25 basis points. This pegs the Repo rate at 7.5 per cent and the Reverse Repo rate at 6.5 per cent, which pretty much looks like an eyewash. According to the RBI, headline inflation remains a key concern and leaves little headway for any further rate cuts during the year. While all this is happening, the government faces a fresh crisis, with the DMK pulling out its support to the UPA II. What could early elections mean for the nation in general, the economy in particular and most importantly, the markets? Well, the markets will always find an excuse to move and you, dear investors, can be sure that we will always be there to guide you.