500 Sensex: The Club of 2020 Buffett Dhandho Methodology Ashutosh.Shyam@timesgroup.com “Follow the pundits”, is a strategy many investors looking to making a fortune on the stock markets swear by. There are several investors in the United States who have built the ‘Buffett portfolio’, following the strategy of Warren Buffett. The cornerstone of Warren Buffett’s investment philosophy is to identify stocks that pass the ‘basic screen test’. Inspired by Buffett, ET Intelligence Group trained its gaze on Dalal Street stocks to find winners in the basic screen test. In what comes as a surprise, there are only 13 listed companies that fulfil the investment tenets of the ‘Oracle of Omaha’. Now the rules: First, positive earnings growth for the past seven years. Buffett invests only in businesses where future earn- ings can be foreseen with some certainty. The 13 compa- nies in our list grew on an average of 27.40% annually. Among them, Navneet Education reported the lowest average earnings of 13.35% while Kaveri Seeds reported the highest growth at 55.07%. Second, average earnings growth of the past three years should be higher than the average growth of the past seven years. This is Buffett’s way to compare the me- dium term growth rate to the long term growth rate and look for an expanding bottom line. The aver- age growth of these 13 companies in the past three fiscals has been 35% against 27% in the past seven years. Third, the return on equity should be higher than the industry aver- age, preferably above 15%. Average RoE of the 13 companies was 33%, of which RoE of eight companies were higher than 30% — with TCS, Kaveri Seeds and Ajanta Pharma’s scor- ing more than 40% in the last financial year. After shortlisting stocks based on these three parameters, Buffett typically tries to project the possible future earn- ings and the possible dividend payout from historical data on earnings per share (EPS) and dividend declared. And, finally stocks are picked if the projected return to an inves- tor is at least 15% every year. If Warren Buffett were a Dalal Street investor, which stocks would he pick? ETIG identifies the companies that pass his famous ‘basic screen test’ of value investing 500 Ashutosh.Shyam@timesgroup.com The composition of equity benchmarks changes over time, based on the perfor- mance of the companies that make up the index and investor preference. Today, GE, Procter & Gamble and Exxon Mobil are the only three companies that remain in the Dow Jones Index since the pre-World War II days. Similarly, India’s barometer BSE Sensex has eight companies that have remained a part of the index since 1992. There were a number of companies which once occupied pride of place in the index, but have now vanished into oblivion since their earnings growth could not match the country’s growth and their scope of business offered very limited to zero upside. Between 1992 and 2002, 18 out of the 30 Sensex companies that exited from the index were primarily from the capi- tal goods and the textile sec- tors. Similarly, between 2002 and 2012, nearly half of the constituents have changed. How will the decade since, shape the BSE Sensex? Which are the companies that will make it to the vaunted index in 2020? ETIG does the number crunching. There are several factors that will play a pivotal role in defining the composition of the Sensex over the coming years. One key factor is the speed with which consumer focus will shift to branded and high-priced products, also called premiu- misation. A study of global markets shows that rising per capita incomes led to a significant increase in the consumption of premium products — cars, motorcycles, apparel, watches and consumer staples. This factor magnifies the transition to premium products once the per capita in- come crosses $2,000-$2,500 levels. India’s current per capita income hovers in the $1,400 range. Rising per capita income means compa- nies operating in the premiumisation space such as Eicher Motors (maker of the Royal Enfield motorcycle), Titan (maker of brand- ed jewellery and watches), Page Industries (Indian franchisee of innerwear brand Jockey and swimwear brand Speedo) and Nestle India (market leader in baby food) will have a better plank to enter the Sensex. Eicher Motors is a company to watch out for. Currently, it caters to a meagre 2% of the total two wheeler volumes and con- tributes to nearly 10% of the total operat- ing profits of the two wheeler segment in India. According to CLSA, Eicher’s operating profit share will increase to 20% by FY18. This means Eicher Motors stands to gain the most from the changing demand profile in the two- wheeler industry. The next leg of new Sensex entrants may also emerge from the “known unknowns” particularly for the companies from the ecommerce space. About two years ago Google’s ex- CEO Eric Schmidt said that the next Google would come from India. Currently, there are a lot of companies in the ecommerce space whose valuations are significantly higher than the brick and mortar companies. For example, Flipkart, which is contemplating an IPO, enjoys an implied valuation that is more than that of brick-and-mortar giants like Indian Oil Corporation ($14.3 billion), Tata Motors ($13.9 billion), Lupin ($12 bil- lion), UltraTech Cement ($11.7billion) and Mahindra & Mahindra ($10.3 billion). There are only 19 listed Indian companies that are currently valued more than Flipkart. There are several listed companies cur- rently trading at a discount of 30-40% as compared to their global peers due to regu- latory overhang. For instance, oil market- ing companies HPCL, BPCL and IOC be- long to this group. As reforms in oil sector are progressing and the financial matrix is gradually improving, the valuations of these companies are expected to improve. In fact, HPCL was part of the Sensex before 2012 when the oil under-recovery was un- der control. Kiran Kabtta Somvanshi & Jayadevan PK Startups, especially in the ecommerce space, is one growth story that Indian re- tail investors have not been able to partake in. That may change, albeit very slowly. Ahmedabad-based Infibeam, the peer of Flipkart and Snapdeal, would be the first of the ecommerce startups to get listed. But while market regulator Sebi has come out with easier listing norms for startups, there is no beeline among them to list. There are reasons. Most of the startups are reg- istered outside India in mar- kets like the US, Singapore after their initial rounds of funding to avoid regulatory hurdles. “As on June 30, 75% of the funded tech startups have re-domiciled outside India. This despite the fact that the new listing plat- forms in India have eliminat- ed the requirement of profit- ability as a prerequisite to get listed,” said Sharad Sharma, founder of Ispirt, a software product industry think tank. Top Indian companies such as online retailer Flipkart and mobile advertising firm InMobi have re-domiciled to Singapore. Most startups have raised several rounds of funds from private equity firms and ven- ture capitalists. This capital chase has sent their valua- tions soaring so steep that it has smacks of a bubble in the making. Currently, the business is small with negative returns but the money invested is big, raising doubts over the sustainability of this game. Valuations of many startups today are towering over many older mainstream businesses. “VCs are pricing these companies at very large numbers. This pricing re- flects the expectation that disruption is coming to many Indian businesses, which have historically been poorly run, inefficient and splintered,” said Professor Aswath Damodaran of the Stern School of Business at New York University. “Whether they are being over optimistic in their assess- ments, only time will tell for the individual companies,” he added. The pre-IPO valuations are based on certain assump- tions and are a function of many unknowns. Once these entities are listed, critical information about revenues, cash flows, profit and economic conditions will get factored into the pricing of the stock. For instance, Alibaba’s stock got listed at $92.7 in September 2014, however, it is now down 26%, as the impact of a Chinese slowdown has been factored into the stock. “We have seen across the board, especially in pub- lic markets, that slowing growth means multiple compression and I don’t think that’s something that private companies have had to deal with,” Evan Spiegel, cofounder and CEO of photo and video messaging app Snapchat told ET. “The more pressing ques- tion here is whether the startups are in a position to get listed right now. Listing is way too early in their cy- cle due to many challenges pertaining to disclosures and profitability among other things”, said Akhilesh Tilotia, associate director, Kotak Institutional Equities. Besides, IPOs can be time- consuming. Instead, raising funds through private inves- tors is easier and faster. However, the interest on the Street for ecommerce businesses remains healthy. Public markets do under- stand the explosive nature of ecommerce. Consumer Internet firm BharatMatrimony has filed its draft red herring pro- spectus with Sebi in August. The stock of jewellery firm Tribhovandas Bhimji Zaveri spurted 16.5% on October 8 on record high volumes after the company announced a tie-up with Snapdeal to sell its products. Companies that cater to the ‘premiumisation’ of the consumer experience are better placed to enter the benchmark index Startup unicorns continue to remain private to steer clear of regulatory hurdles. Most are aiming at attaining critical mass before listing THE BSE SENSEX HAS ONLY 8 COMPANIES THAT ARE ON THE INDEX SINCE 1992 Startups: The Missing Link in ET500 3 TUESDAY, 27 OCTOBER, 2015 It is no surprise that the top dividend companies is dominated by the energy and IT sectors in 2015. TCS, emerged as the top dividend payer after declaring a special dividend of `40 per share on account of 10th anniversary of its initial public offer. A case in point is that most of the companies in the list are cash rich. That might, however, change as companies such as NMDC and ONGC may not find a place in the list next year given the likely fall in profits due to lower commodity prices. Coal India is the only company in the top 10 list, which paid a lower dividend compared to last year. The top 10 dividend paying companies contribut- ed 46% to the total dividend paid by ET500 companies for fiscal year 2015. —Suraj Sowkar Source: ETIG Database ET500 RANK 2015 COMPANY INDUSTRY DIVIDEND AMT (`CR) 10 TCS Infotech 15,473.9 16 Coal India Mining & Minerals 13,074.9 7 ONGC Oil & Gas 8,127.7 248 Oracle Fin Serv Infotech 5,624.8 23 Infosys Infotech 5,111.0 36 ITC FMCG 5,009.7 88 NMDC Mining & Minerals 3,389.8 43 Hind Unilever FMCG 3,245.3 29 Wipro Infotech 2,963.6 2 Reliance Inds Oil & Gas 2,944.0 Total Dividend paid by ET500 1,26,276.0 HPCL BPCL IOCL TCS Rajesh Exports IOCL Tata Motors Reliance Inds. ONGC Bharti Airtel State-owned oil marketing companies saw a sharp jump in their cash flows after the de-regulation of diesel prices in 2014. Earlier they used to sell fuell below cost and the delay in subsidy payment by the government hurt cash flows. In 2014-15, IOC, HPCL and BPCL saw a marked improvement, and also made to the list of the highest cash generating companies. Other names that saw a sharp jump in their cash flows include jeweller Rajesh Exports and TCS. Lower gold prices led to lower capital blocked in inventory, which helped Rajesh Exports, while strong profit growth drove increased cash flows at TCS. Companies such as Reliance, ONGC, Tata Motors and Airtel too ranked amongst the highest cash flow generators. There was, however, no significant increase in their cash flows over the previous year. —Jwalit Vyas Oil Marketers Rule the 2015 Cash Flow League TO 5 COS WITH HIGHEST CASH FLOW GROWTH TOP 5 COS WITH HIGHEST CASH FLOWS 19,398 7,007 9,588 20,742 24,195 45,976 14,751 19,369 -2,502 4,185 177% 90% 116% -3% 90% -21% 31% -36% 5% ET500 Rank 2015 FY15 Cashflow from Op (`cr) FY14 Cashflow from Op (`cr) % Chg 45,976 24,195 43,261 34,374 53,270 34,009 26,233 27,602 36,151 35,183 06 05 01 10 27 01 03 02 07 11 Data Compilation: Shailesh Kadam; Software Support: SV Radhakrishnan; Online: Rathina Sabapathy; Marketing: Times Response; Editorial Support: L Ramakrishnan, Sugata Ghosh; Design: Shubhra Dey, Ajay Mane; Production: Sandeep Dutta, Sachin Kapoor ILLUSTRATIONS: ANIRBAN BORA GRAPHICS: AJAY MANE Who Made The Cut Dividend Generosity WHILE FLIPKART AND SNAPDEAL WAIT, INFIBEAM IS PLANNING AN IPO 1 Companies with market capitalisation more than `100 cr are ranked based on total income (or revenue) in FY15 & annual reports released before Oct 12. Financial results for periods other than 12 months are annualised. 2 Stocks traded less than 75% of the total traded days during the 3 months to Oct 12 are excluded. 3 Revenue, profit after tax (PAT), and market capitalisation numbers sourced from ETIG database. 4 Total assets, return on capital employed (RoCE), and return on assets (RoA) are sourced from Capitaline 5 Market capitalisation is the average for September. 6 Consolidated financials considered wherever available. 7 ‘LP’ means loss in FY14, profit in FY15. ‘PL’ means profit in FY14, loss in FY15. ‘LL’ means loss in both years. 8 Trading companies show marked difference in sales and profits due to the nature of their business. (%) Profit CAGR Return On Equity 3 Yr 7 Yr FY15 Avg (7 Yr) Atul 38.24 34.34 24.08 20.49 Dabur India 18.23 18.08 35.56 45.02 Lupin 40.44 28.82 30.93 30.83 Torrent Pharma 38.28 27.83 34.19 32.74 Wipro 15.79 14.85 25.18 26.14 Navneet Edu 18.68 13.35 25.52 24.17 Kitex Garments 53.73 41.12 44.98 34.70 Natco Pharma 31.20 18.71 16.57 15.91 Marico 21.83 19.06 36.72 35.11 Ajanta Pharma 58.88 46.03 43.20 30.59 TCS 23.99 21.68 40.19 40.45 Kaveri Seed Co 73.03 55.07 47.36 32.29 Source: ETIG database
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500
Sensex: The Club of 2020
Buffett Dhandho
Methodology
“Follow the pundits”, is a strategy many investors looking to making a fortune on the stock markets swear by. There are several investors in the United States who have built the ‘Buffett portfolio’, following the strategy of Warren Buffett. The cornerstone of Warren Buffett’s investment philosophy is to identify stocks that pass the ‘basic screen test’. Inspired by Buffett, ET Intelligence Group trained its gaze on Dalal Street stocks to find winners in the basic screen test. In what comes as a surprise, there are only 13 listed companies that fulfil the investment tenets of the ‘Oracle of Omaha’.Now the rules:
First, positive earnings growth for the past seven years. Buffett invests only in businesses where future earn-ings can be foreseen with some certainty. The 13 compa-nies in our list grew on an average of 27.40% annually. Among them, Navneet Education reported the lowest average earnings of 13.35% while Kaveri Seeds reported the highest growth at 55.07%. Second, average earnings growth of the past three years should be higher than the average growth of the past seven years. This is Buffett’s way to compare the me-dium term growth rate to the long term growth rate and
look for an expanding bottom line. The aver-age growth of these 13 companies in the past three fiscals has been 35% against 27% in the past seven years.
Third, the return on equity should be higher than the industry aver-age, preferably above 15%. Average RoE of the 13 companies was 33%, of which RoE of eight companies were higher than 30% — with TCS, Kaveri Seeds and Ajanta Pharma’s scor-ing more than 40% in the last financial year.
After shortlisting stocks based on these three parameters, Buffett typically tries to project the possible future earn-ings and the possible dividend payout from historical data on earnings per share (EPS) and dividend declared. And, finally stocks are picked if the projected return to an inves-tor is at least 15% every year.
If Warren Buffett were a Dalal Street investor, which stocks would he pick? ETIG identifies the companies that pass his famous ‘basic screen test’ of value investing
500
The composition of equity benchmarks changes over time, based on the perfor-mance of the companies that make up the index and investor preference. Today, GE, Procter & Gamble and Exxon Mobil are the only three companies that remain in the Dow Jones Index since the pre-World War II days. Similarly, India’s barometer BSE Sensex has eight companies that have remained a part of the index since 1992. There were a number of companies which once occupied pride of place in the index, but have now vanished into oblivion since their earnings growth could not match the country’s growth and their scope of business offered very limited to zero upside.
Between 1992 and 2002, 18 out of the 30 Sensex companies that exited from the index were primarily from the capi-tal goods and the textile sec-tors. Similarly, between 2002 and 2012, nearly half of the constituents have changed.
How will the decade since, shape the BSE Sensex? Which are the companies that will make it to the vaunted index in 2020? ETIG does the number crunching.
There are several factors that will play a pivotal role in defining the composition of the Sensex over the coming years.
One key factor is the speed with which consumer focus will shift to branded and high-priced products, also called premiu-misation. A study of global markets shows that rising per capita incomes led to a significant increase in the consumption of premium products — cars, motorcycles, apparel, watches and consumer staples.
This factor magnifies the transition to premium products once the per capita in-come crosses $2,000-$2,500 levels. India’s current per capita income hovers in the $1,400 range.
Rising per capita income means compa-nies operating in the premiumisation space such as Eicher Motors (maker of the Royal
Enfield motorcycle), Titan (maker of brand-ed jewellery and watches), Page Industries (Indian franchisee of innerwear brand Jockey and swimwear brand Speedo) and Nestle India (market leader in baby food) will have a better plank to enter the Sensex.
Eicher Motors is a company to watch out for. Currently, it caters to a meagre 2% of the total two wheeler volumes and con-tributes to nearly 10% of the total operat-ing profits of the two wheeler segment in India. According to CLSA, Eicher’s operating profit share will increase to 20% by FY18. This means Eicher Motors stands to gain the most from the changing
demand profile in the two-wheeler industry.
The next leg of new Sensex entrants may also emerge from the “known unknowns” particularly for the companies from the ecommerce space. About two years ago Google’s ex-CEO Eric Schmidt said that the next Google would come
from India. Currently, there are a lot of companies in the ecommerce space whose valuations are significantly higher than the brick and mortar companies. For
example, Flipkart, which is contemplating an IPO, enjoys an implied valuation that is more than that of brick-and-mortar giants like Indian Oil Corporation ($14.3 billion), Tata Motors ($13.9 billion), Lupin ($12 bil-lion), UltraTech Cement ($11.7billion) and Mahindra & Mahindra ($10.3 billion). There are only 19 listed Indian companies that are currently valued more than Flipkart.
There are several listed companies cur-rently trading at a discount of 30-40% as compared to their global peers due to regu-latory overhang. For instance, oil market-ing companies HPCL, BPCL and IOC be-long to this group. As reforms in oil sector are progressing and the financial matrix is gradually improving, the valuations of these companies are expected to improve. In fact, HPCL was part of the Sensex before 2012 when the oil under-recovery was un-der control.
Kiran Kabtta Somvanshi & Jayadevan PK
Startups, especially in the ecommerce space, is one growth story that Indian re-tail investors have not been able to partake in. That may change, albeit very slowly. Ahmedabad-based Infibeam, the peer of Flipkart and Snapdeal, would be the first of the ecommerce startups to get listed. But while market regulator Sebi has come out with easier listing norms for startups, there is no beeline among them to list. There are reasons.
Most of the startups are reg-istered outside India in mar-kets like the US, Singapore after their initial rounds of funding to avoid regulatory hurdles. “As on June 30, 75% of the funded tech startups have re-domiciled outside India. This despite the fact that the new listing plat-forms in India have eliminat-ed the requirement of profit-ability as a prerequisite to get listed,” said Sharad Sharma, founder of Ispirt, a software product industry think tank. Top Indian companies such as online retailer Flipkart and mobile advertising firm InMobi have re-domiciled to Singapore.
Most startups have raised several rounds of funds from private equity firms and ven-ture capitalists. This capital chase has sent their valua-tions soaring so steep that it has smacks of a bubble in the making.
Currently, the business is small with negative returns but the money invested is big, raising doubts over the sustainability of this game. Valuations of many startups today are towering over many older mainstream businesses.
“VCs are pricing these companies at very large numbers. This pricing re-flects the expectation that disruption is coming to
many Indian businesses, which have historically been poorly run, inefficient and splintered,” said Professor Aswath Damodaran of the Stern School of Business at New York University. “Whether they are being over optimistic in their assess-ments, only time will tell for the individual companies,” he added.
The pre-IPO valuations are based on certain assump-tions and are a function of many unknowns. Once these entities are listed, critical information about revenues, cash flows, profit and economic conditions will get factored into the pricing of the stock. For instance, Alibaba’s stock got listed at $92.7 in September 2014, however, it is now down 26%,
as the impact of a Chinese slowdown has been factored into the stock.
“We have seen across the board, especially in pub-lic markets, that slowing growth means multiple compression and I don’t think that’s something that private companies have had to deal with,” Evan Spiegel, cofounder and CEO of photo and video messaging app Snapchat told ET.
“The more pressing ques-tion here is whether the startups are in a position to get listed right now. Listing is way too early in their cy-cle due to many challenges pertaining to disclosures and profitability among other things”, said Akhilesh Tilotia, associate director, Kotak Institutional Equities. Besides, IPOs can be time-consuming. Instead, raising funds through private inves-tors is easier and faster.
However, the interest on the Street for ecommerce businesses remains healthy. Public markets do under-stand the explosive nature of ecommerce.
Consumer Internet firm BharatMatrimony has filed its draft red herring pro-spectus with Sebi in August. The stock of jewellery firm Tribhovandas Bhimji Zaveri spurted 16.5% on October 8 on record high volumes after the company announced a tie-up with Snapdeal to sell its products.
Companies that cater to the ‘premiumisation’ of the consumer experience are better placed to enter the benchmark index
Startup unicorns continue to remain private to steer clear of regulatory hurdles. Most are aiming at attaining critical mass before listing
THE BSE SENSEX HAS ONLY 8 COMPANIES THAT ARE ON THE INDEX SINCE 1992
Startups: The Missing Link in ET500
3TUESDAY, 27 OCTOBER, 2015
It is no surprise that the top dividend companies is dominated by the energy and IT sectors in 2015. TCS, emerged as the top dividend payer after declaring a special dividend of `40 per share on account of 10th anniversary of its initial public offer. A case in point is that most of the companies in the list are cash rich. That might, however, change as companies such as NMDC and ONGC may not fi nd a place in the list next year given the likely fall in profi ts due to lower commodity prices. Coal India is the only company in the top 10 list, which paid a lower dividend compared to last year. The top 10 dividend paying companies contribut-ed 46% to the total dividend paid by ET500 companies for fi scal year 2015. —Suraj Sowkar Source: ETIG Database
ET500RANK 2015 COMPANY INDUSTRY DIVIDEND
AMT (`CR)
10 TCS Infotech 15,473.9
16 Coal India Mining & Minerals 13,074.9
7 ONGC Oil & Gas 8,127.7
248 Oracle Fin Serv Infotech 5,624.8
23 Infosys Infotech 5,111.0
36 ITC FMCG 5,009.7
88 NMDC Mining & Minerals 3,389.8
43 Hind Unilever FMCG 3,245.3
29 Wipro Infotech 2,963.6
2 Reliance Inds Oil & Gas 2,944.0
Total Dividend paid by ET500 1,26,276.0
HPCL
BPCL
IOCL
TCS
Rajesh Exports
IOCL
Tata Motors
Reliance Inds.
ONGC
Bharti Airtel
State-owned oil marketing companies saw a sharp jump in their cash fl ows after the de-regulation of diesel prices in 2014. Earlier they used to sell fuell below cost and the delay in subsidy payment by the government hurt cash fl ows. In 2014-15, IOC, HPCL and BPCL saw a marked improvement, and also made to the list of the highest cash generating companies. Other names that saw a sharp jump in their cash
fl ows include jeweller Rajesh Exports and TCS. Lower gold prices led to lower capital blocked in inventory, which helped Rajesh Exports, while strong profi t growth drove increased cash fl ows at TCS. Companies such as Reliance, ONGC, Tata Motors and Airtel too ranked amongst the highest cash fl ow generators. There was, however, no signifi cant increase in their cash fl ows over the previous year. —Jwalit Vyas
Oil Marketers Rule the 2015 Cash Flow League
TO 5 COS WITH HIGHEST CASH FLOW GROWTH TOP 5 COS WITH HIGHEST CASH FLOWS
19,3987,007
9,588 20,742
24,195 45,976
14,751 19,369
-2,502 4,185
177% 90%
116% -3%
90% -21%
31% -36%
5%
ET500 Rank 2015 FY15 Cashfl ow from Op (`cr) FY14 Cashfl ow from Op (`cr) % Chg
45,97624,195
43,26134,374
53,27034,009
26,233 27,602
36,15135,183
06
05
01
10
27
01
03
02
07
11
Data Compilation: Shailesh Kadam; Software Support: SV Radhakrishnan; Online: Rathina Sabapathy; Marketing: Times Response; Editorial Support: L Ramakrishnan,
Sugata Ghosh; Design: Shubhra Dey, Ajay Mane; Production: Sandeep Dutta, Sachin Kapoor
ILLU
STR
ATIO
NS: A
NIR
BA
N B
OR
AG
RA
PH
ICS: A
JAY
MA
NE
Who Made The Cut
Dividend Generosity
WHILE FLIPKART AND SNAPDEAL WAIT, INFIBEAM IS PLANNING AN IPO
1 Companies with market capitalisation more than `100 cr are ranked based on total income (or revenue) in FY15 & annual reports released before Oct 12. Financial results for periods other than 12 months are annualised.
2 Stocks traded less than 75% of the total traded days during the 3 months to Oct 12 are excluded.
3 Revenue, profi t after tax (PAT), and market capitalisation numbers sourced from ETIG database.
4 Total assets, return on capital employed (RoCE), and return on assets (RoA) are sourced from Capitaline
5 Market capitalisation is the average for September.
6 Consolidated fi nancials considered wherever available.
7 ‘LP’ means loss in FY14, profi t in FY15. ‘PL’ means profi t in FY14, loss in FY15. ‘LL’ means loss in both years.
8 Trading companies show marked difference in sales and profi ts due to the nature of their business.
(%)
Profi t CAGR Return On Equity
3 Yr 7 Yr FY15 Avg (7 Yr)
Atul 38.24 34.34 24.08 20.49
Dabur India 18.23 18.08 35.56 45.02
Lupin 40.44 28.82 30.93 30.83
Torrent Pharma 38.28 27.83 34.19 32.74
Wipro 15.79 14.85 25.18 26.14
Navneet Edu 18.68 13.35 25.52 24.17
Kitex Garments 53.73 41.12 44.98 34.70
Natco Pharma 31.20 18.71 16.57 15.91
Marico 21.83 19.06 36.72 35.11
Ajanta Pharma 58.88 46.03 43.20 30.59
TCS 23.99 21.68 40.19 40.45
Kaveri Seed Co 73.03 55.07 47.36 32.29
Source: ETIG database
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