BCG's top 25 global value creators list: Jindal Stainless, Dixon Technologies, Varun Beverages take the cake

BCG’s top 25 global value creators list: Jindal Stainless, Dixon Technologies, Varun Beverages take the cake

Led by strong capital markets in 2023, the average annual total shareholder return (TSR) surged across the companies in BCG’s Value Creators database. The median rose to 12% per year from 2019 through 2023—up from 7% per annum from 2018 through 2022. The report highlighted that technology and tech-related companies led the charge. Several asset-heavy industrial sectors or recently lagging industries also accelerated their TSR performance compared with last year’s study and now rank near the top of our industry ranking. The BSE Sensex rallied 18% in 2023, while the broader indices–the BSE Midcap and BSE Smallcap–gained 45% and 46%, respectively.

The BCG’s 2024 rankings reflect analysis of TSR at 2,355 companies worldwide from 2019 through 2023. From the Indian equity markets, Jindal Stainless managed to get ninth place on the list of the global top 25 companies across industries in terms of TSR ranking. According to BCG, the 5-year annualised TSR of the company stood at 76%. Share price of Jindal Stainless surged more than 126% in 2023. It was followed by Dixon Technologies, which was placed at number 10. The 5-year annualised TSR of the company stood at 74%. APL Apollo Tubes (rank 15), Varun Beverages (rank 22) and Tube Investments of India (rank 25) also managed to get a place in the top 25 companies.

Akshay Kohli, Managing Director & Partner, BCG said, “Overall, the last 12 months have been incredibly strong for the global capital markets, with median annual TSR increasing from 7% to 12% on a rolling 5-year basis. India has been at the forefront of this charge across global markets. Even more “traditional” asset-heavy industries have performed very strongly, reflecting India’s accelerated push toward domestic manufacturing in multiple sectors and increased investment in industrial infrastructure development. But amid this historic bull-run, companies are faced with a complex set of challenges to navigate: how to meet the continually rising bar of investor expectations, and how to maintain and extend their multiples when global indices are at an all-time high,” said.

BCG further said that technology hardware emerged as the standout industry for value creation, boasting a median TSR of 27% per year from 2019 through 2023. Value creation was especially impressive among mega-cap companies and semiconductor manufacturers. The software and electrical components industries also maintained a strong TSR trajectory, ranking 5th and 9th, respectively, among the 35 industries.

“Not surprisingly, technology, and tech-related companies also continue to dominate our large-cap value creators ranking, covering the 200 most valuable companies worldwide. Within this elite group, tech hardware companies secure five of the top ten spots and nine of the top 20. The prominent names include NVIDIA, the top performer, and Apple, boasting a $3 trillion market cap at the end of 2023. Software players, such as ServiceNow and Shopify also make the list, alongside electric-vehicle giants Tesla and BYD and retail powerhouses PDD and Mercado Libre,” BCG said in a release.

In contrast, several healthcare sectors—large-cap pharma, medical technology, and healthcare services—experienced a TSR slowdown, even though their median returns continued to surpass 10% annually.

Overall, the United States’ Celsius managed to attain the top position on the list. The 5-year annualised TSR of the company stood at 116%. United States Enphase Energy (rank 2) and Japan’s Lasertec (rank 3) were among other major leaders in the list of BCG’s top 25 global companies across industries.

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