Industry Multiples in India Report 2023 - 21st Edition

We are pleased to launch the 21st edition of our Industry Multiples in India report. The report provides an overview of trading multiples for various key industries in India as of June 30, 2023, using constituents belonging to the S&P BSE LargeCap, S&P BSE MidCap and S&P BSE SmallCap indices.

Key Highlights

• The Reserve Bank of India (RBI) has revised its forecasts for India’s economic growth to 6.5% from 6.0%. This is attributable to the outperformance in the first quarter. The Purchasing Managers’ Index for manufacturing and services and credit growth remained robust in recent months.
• Market capitalization of companies in the energy industry increased by 15.2% from Q1 CY 2023 to Q2 CY 2023. India has achieved significant progress in renewable energy installed capacity. The energy demand is projected to grow substantially owing to further industrialization and urbanization.
• Market capitalization of companies in the health care facilities industry increased by 22.3% from Q1 CY 2023 to Q2 CY 2023. The outlook remains stable for hospital chains owing to higher in-patient and surgery count which is generating cashflow, and companies are investing in expanding their networks through brownfield capex. The National Medical Device Policy 2023 paves the way for innovation and access and sets out a comprehensive roadmap to achieve a 10.0% to 12.0% share in the expanding global market in the next 25 years.

• Market capitalization of companies in the apparel industry increased by 25.6% from Q1 CY 2023 to Q2 CY 2023. India is expanding its presence in the global market by building strategic partnerships. The government has also enforced programs such as the National Textile Policy and Technology upgradation Fund Scheme to facilitate investments and other reforms to reduce bureaucratic hurdles in this sector.
• Market capitalization of companies in the automobile industry increased by 23.0% from Q1 CY 2023 to Q2 CY 2023. Automobile sales have escalated in the recent quarter due to surging demand for new passenger vehicle launches, improvement in the semiconductor supplies, as well as growth in dispatches from the factories to the dealers.