Indian companies have experienced strong growth in recent years. The Indian stock market grew by 4.4% in 2022 despite global challenges. The market capitalisation of the Indian stock exchange, the BSE, reached $3.5 trillion in 2023. Such figures show the market’s potential for investors.
Tata Group: The prime example of growth
Many companies, but also private investors, have long since recognised the potential of Indian companies for themselves. One of the most attractive advantages lies in the transparent regulation of the market, since stock companies require an official LEI certificate – lei.net to ensure security and transparency for investors. This makes it easy to invest in the industry leader Tata Group, even across borders.
In 2022, Tata Motors, part of the Tata conglomerate, generated a turnover of 37.4 billion US dollars, a significant increase over previous years. Tata shares have seen a growth of 40% in the last five years, reflecting the confidence of international investors. In fact, around 20% of investment in Tata Motors comes from international investors who are betting on the company’s stability and potential. Thanks to strict transparency guidelines, such as the LEI certification mentioned above, such investments remain secure and transparent.
Sustainable growth through diversification
Tata has positioned itself in a variety of sectors, including the automotive industry, steel production and telecommunications, through broad diversification. Its strong market presence ensures stability and minimises risks. International investors appreciate this diversification as it offers solid growth potential. The stock remains a safe choice even in turbulent times, which underlines its value as a long-term investment.
Reliance Industries: a leader in the energy industry
Reliance Industries has become one of India’s largest companies. The group, which originally operated in the oil and gas sector, has diversified strongly into the telecommunications and retail sectors in recent years. Reliance Jio, the telecommunications unit, is now India’s largest mobile phone provider. Reliance Industries generated revenues of 92 billion US dollars in 2022, with Jio contributing a significant share.
Digitalisation as the key to success
Reliance Jio’s growth has propelled the company into a new era. Since entering the telecommunications sector, Reliance Industries has increased its market capitalisation to over $200 billion. International investors, particularly from the US, have shown great interest, which is reflected in a foreign ownership share of about 30%. Its strong position in the digital space makes Reliance a promising candidate for long-term investment.
Infosys: A success story in the IT sector
Infosys is another Indian market leader, particularly in the field of information technology. The company has established itself as one of the leading providers of IT services and consulting. In 2023, Infosys reached an annual turnover of 16 billion US dollars. Infosys’s share price has increased impressively by over 25% in the last three years, making it extremely attractive to investors.
High demand for IT services
The IT sector in India is benefiting from the increasing global demand for digital services. Many international companies, particularly from the US and Europe, outsource their IT services to Indian companies like Infosys. This development has driven up the share price of Infosys. Another advantage is the compliance with international standards for share issuance, which offers additional security for foreign investors.
Wipro: innovative strength in technology
Wipro is another IT company that has experienced strong growth in recent years. With annual revenues of $10 billion in 2022, the company has continued to expand its international customer base. Wipro’s stock has proven to be a solid choice in recent years, with an average annual return of 15%.
International expansion strengthens growth
Wipro has strengthened its market position globally through strategic acquisitions in the US and Europe. This makes the company an attractive investment prospect. Around 25% of the shares are held by international investors, which underlines the confidence in Wipro’s long-term stability and growth potential.
HDFC Bank: A financial giant with stable growth
HDFC Bank is one of India’s largest private banks and has experienced impressive growth in recent years. With a net profit of $5.6 billion in 2023, the bank was able to further consolidate its position as a leading financial services provider. HDFC’s stock has performed consistently well over the last five years, achieving an annual growth rate of about 20%. Investors benefit from the stable business performance and constant dividends.
Strong position in the banking sector
As a leading private bank, HDFC enjoys a high level of trust among investors, both nationally and internationally. Around 40% of HDFC’s shares are held by foreign investors, which reflects the international interest in the bank. Thanks to strict regulatory requirements and transparent processes, the bank offers secure investment opportunities.
Larsen & Toubro: An engineering and construction giant
Larsen & Toubro (L&T) is a leading construction and engineering company that is benefiting significantly from the growth of the Indian economy. In the financial year 2023-2024, L&T generated revenues of INR 2.21 trillion (approximately US$27.6 billion), an impressive 21% growth over the previous year. Net profit rose 23% to INR 155.69 billion, supported by strong orders from the Middle East and extensive infrastructure projects from the Indian government. These figures reflect the broader economic upturn in India, which remains the world’s fastest-growing major economy, with growth of 8.4% in the last quarter of 2023.
Diversification and international expansion
L&T’s diversification into new sectors such as green energy, data centres and semiconductors significantly strengthens the company’s long-term growth prospects. In line with Prime Minister Narendra Modi’s vision of expanding India’s manufacturing capabilities, the government has approved INR 1.26 trillion (approximately US$15.2 billion) of investment for the construction of three new semiconductor fabs, which will directly benefit L&T. These investments underscore India’s goal of establishing itself as a global player in the technology industry. L&T’s share price rose by over 31% last year, reaching INR 3,756 in September 2024.
With a market capitalisation of INR 5.28 trillion, L&T remains a popular target for investors worldwide looking to capitalise on India’s booming economy, which is forecast to grow 6.5% through 2024, according to the IMF.