India is a land of opportunities. The Indian market includes a broad spectrum of industries in many sectors, but just a handful of businesses are demonstrating a substantial rise in their market share over time. This is owing to upgrading market circumstances as well as strategic planning and forecasting.
Here are 3 companies that have a market share of more than 45% over the decades
Asian Paints Limited:
India’s largest and leading paint manufacturer Asian Paints, Company serves customers in more than 60 countries across the globe, The company has an innovative, cutting-edge supply chain system that integrates all of its operations, regional distribution centres, and branches across India.
Asian Paints became the world’s largest paint manufacturer in 1967 and has maintained its leadership position for the last 55 years.
Asian Paints leads the paint sector with 59 percent of the market, followed by Berger and Kansai Nerolac. The paints business generates 98% of the company’s revenue, while the home improvement sector generates 2%.
The company belongs to the Large-cap category with a market capitalization of Rs 3,13,676 crores. On June 15, shares were trading at Rs 3,283.45 apiece.
In each of the previous ten years, the firm has achieved an ROE (Return on Equity) of at least 20%. It became one of just 100 companies out of almost 4,000 in the globe to have accomplished this.
The company’s revenue increased by 19 percent year on year, from Rs 29,101 crores in FY 21-22 to Rs 34,488 crores in FY 22-23. Net profit has grown by 34 percent, from Rs 3,053 crores to Rs 4,101 crores.
Bajaj Finance Limited:
India’s leading non-banking financial company (NBFC) Bajaj Finance Limited is engaged in the business of lending for retail, SME, and commercial customers with a significant presence in urban and rural India.
The company belongs to the Large-cap category with a market capitalization of Rs 4,30,011 crores.On June 15, shares were trading at Rs 7,095.55 apiece.
Bajaj Finance has a significant market share of 45% in the NBFC segment in commercial/personal loans, and the company has achieved a 23% CAGR, which no other Indian bank, NBFC has witnessed in the last couple of decades.
Bajaj Finance’s cost of financing is 250 basis points higher than that of major banks, which makes the company uncompetitive.
However, the company has also achieved some milestones, such as clocking its highest-ever loan book in Q4 of FY2023, which has led to a rise in its share price
finance growth.
The company’s revenue increased by 31 percent year on year, from Rs 31,632 crores in FY 21-22 to Rs 41,397 crores in FY 22-23. Net profit has grown by 64 percent, from Rs 7,028 crores to Rs 11,506 crores.
Pidilite Industries Ltd:
Pidilite Industries Limited is India’s largest adhesives manufacturer and fourth-largest consumer company by market capitalization.
The company has expanded into a number of businesses, including adhesives and sealants, construction and paint chemicals, automotive chemicals, and many more. Familiar brands of companies like Fevicol, Dr. Fixit, and M-Seal.
Pidilite Industries Ltd is a household name in the adhesives industry through its familiar brands. Pidilite controls more than 70% of the consumer adhesives industry and 25% of the industrial adhesives market in India.
The company belongs to the Large-cap category with a market capitalization of Rs 1,36,902 crores.On June 15, shares were trading at Rs 2,696 apiece.
The company’s revenue increased by 19 percent year on year, from Rs 9,920 crores in FY 21-22 to Rs 11,799 crores in FY 22-23. Net profit has grown by 7 percent, from Rs 1,194 crores to Rs 1,282 crores.
Written by Omkar C
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