Industry Multiples in India Report 2023 - 20th Edition

We are pleased to launch the 20th edition of our Industry Multiples in India report. The report provides an overview of trading multiples for various key industries in India as of March 31, 2023, using constituents belonging to the S&P BSE LargeCap, S&P BSE MidCap and S&P BSE SmallCap indices.

Key Highlights

• The Asian Development Bank projects growth in India’s gross domestic product (GDP) to 6.7% in FY 2024, driven by private consumption and private investment on the back of government policies to improve transport infrastructure, logistics and the business ecosystem.
• Market capitalization of companies in the energy industry has increased by 0.7% from Q4 CY 2022 to Q1 CY 2023. Driven by expanding industrialization and urbanization, the Indian economy is set to experience the largest increase in energy demand in the next 20 years. The Indian government has also approved a budget of INR 197 billion (bn) towards the National Green Hydrogen mission. This move will make India a global hub for using, producing and exporting green hydrogen.
• Market capitalization of companies in the real estate sector has decreased by 14.7% from Q4 CY 2022 to Q1 CY 2023. Due to the new RBI regulations, the RBI monetary policy statement might have far-reaching consequences for the home finance and real estate sectors.

• Market capitalization of companies in the pharmaceutical industry has decreased by 13.4% from Q4 CY 2022 to Q1 CY 2023. Consistent pricing pressure, lack of major generic product launches and increased regulatory scrutiny are some of the challenges faced by the Indian pharmaceutical companies.
• Market capitalization of companies in the automobile manufacturing industry has decreased by 2.9% from Q4 CY 2022 to Q1 CY 2023. While demand for vehicles in the infrastructure-related segments is very strong, it is not so in the case of haulage and auto carrier segments. Demand for passenger vehicles has also slowed down sharply.
• Market capitalization of companies in the media industry has decreased by 22.8% from Q4 CY 2022 to Q1 CY 2023. While FMCG companies remain cautious on ad spends, TV distribution has also suffered due to increased digitization and availability of alternate entertainment options on mobile phones.