If you are in business, profit is the endgame. It doesn’t matter what sector you operate in, what size you are and what markets you serve. Being profitable ensures your survival in the long run. And rightly so, the stock market bestows the highest valuation to companies that can generate sustained profit. Naturally, stock return becomes the best barometer to judge a company’s ability to create shareholder value. Our anniversary edition, The Outperformers, collates a list of companies that managed to do just that over the past five years irrespective of the challenges they faced.
Before that mutual fund investing caveat goes off in your head – past performance is no indication of future return – do remember that doing business in India is no walk in the park. Given that these companies have managed to create value overcoming those odds, they deserve the spotlight. We’ve covered some of these companies, their stories of excellence and the strategy that helped them get there. Apart from delving into their strategy, we were also curious about what these companies are doing to get future-ready.
So, here we are with stories of super growth, and of digital and disruption. Take the case of Maruti Suzuki which started out as a disruptor transforming the passenger car market in India. A market leader for decades, Maruti hasn’t had any real competition to contend with. Hyundai Motor comes in at distant second. But the government’s push to transition to electric vehicles is threatening to test the moat that Maruti has carefully built over decades. Can technology undo what free market forces couldn’t and destroy the moat that has served the company well so far? Find out how India’s largest carmaker is preparing to take on the biggest disruption in its lifetime.
In a sector that is grappling with corporate governance issues and stressed assets, Kotak Mahindra Bank has built a profitable business with its conservative philosophy. As India’s fourth-largest private bank accelerates its banking business, Uday Kotak talks about the bank’s future blueprint, including its 'phygital' strategy in an exclusive interview with Outlook Business. Hope you enjoy reading this edition.