Summary:

According to a DSP Mutual Funds report, India ranks second globally, behind the United States, in the number of firms that have consistently achieved a return on equity (ROE) exceeding 20% for more than 10 years. This highlights the strength of Indian firms and the solid fundamentals driving stock market outperformance. The report suggests that India's success is based on robust financial health rather than popular narratives, ensuring long-term prosperity.

The report also emphasizes that continuous growth in book value has driven the success of Indian companies. Despite economic headwinds, more than three-quarters of Indian companies have experienced positive book value growth. Notably, 39 companies have shown growth over the past 20 years, with seven maintaining uninterrupted development. These companies have demonstrated resilience during global crises such as the 2008 financial crisis and the COVID-19 pandemic.

Source: IBEF 

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