Wed, Feb 7, 2024

Industry Multiples in India Report 2023—22nd Edition

/en/our-team/umakanta-panigrahi

Umakanta Panigrahi

/en/our-team/aviral-jain Aviral Jain is a director at Duff & Phelps.

Aviral Jain

/en/our-team/sanjay-ray

Sanjay Ray

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We are pleased to launch the 22nd edition of our Industry Multiples in India report. The report provides an overview of trading multiples for various key industries in India as of December 31, 2023, using constituents belonging to the Standard and Poor’s (S&P) BSE LargeCap, S&P BSE MidCap and S&P BSE SmallCap indices.

Industry Multiples in India Report 2023 – 22nd Edition

Key Highlights

Per the World Bank’s Global Economic Prospects report, global growth is expected to witness a third consecutive year of deceleration, impacted by the effects of tightened monetary policy, restrictive financial conditions and weak global trade growth. This deceleration reflects softening labor markets, reduced savings buffers and waning pent-up demand for services.
Per the Asian Development Bank, the outlook for developing Asian countries remains solid despite global headwinds. India expects to achieve an annual growth of 7.3% for fiscal year ending in March 2024.
Market capitalization of companies in the metals and mining industry has increased by 13.0% from Q3 CY 2023 to Q4 CY 2023. In 2024, the industry is expected to fill production gaps and reduce reliance on imports, with the aid of policy reforms, incentives and large-scale expansion plans of industry leaders.
Market capitalization of companies in the software services industry has increased by 21.2% from Q3 CY 2023 to Q4 CY 2023. Optimism over Software-as-a-Service companies will drive revenue for the IT sector in 2024. Engineering research and development will remain a bright spot.

Market capitalization of companies in the construction and engineering industry has increased by 18.0% from Q3 CY 2023 to Q4 CY 2023. Government-led infrastructure spending with a focus on railways and highways and the revival of the housing sector is a key reason for the robust outlook.
Market capitalization of companies in the consumer finance industry has increased by 6.0% from Q3 CY 2023 to Q4 CY 2023. Retail lending grew 18% year-on-year in 2023, driven by continued growth in unsecured lending. According to the latest Reserve Bank of India (RBI) credit growth data, personal loans and credit card spending grew by 22% and 28%, respectively.
Market capitalization of companies in the independent power and renewable energy industry has increased by 37.6% from Q3 CY 2023 to Q4 CY 2023. Renewable energy crossed the 179.5 gigawatt (GW) mark making India the fourth-largest player in wind and solar power globally.

We hope you find this report helpful. Connect with us to receive additional information on related topics or to discuss any findings of this analysis.

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Industry Multiples in India Report – 21st Edition

Industry Multiples in India Report 2023 – 21st Edition

Industry Multiples in India Report – 21st Edition

The 21st edition of our Industry Multiples in India 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.