Video: Inside the issue
This issue Fortune India brings out its maiden list of India’s Top 100 Wealth Creators. Here’s the thesis behind the creation of the list:
The success of a company can be measured through usual parameters such as sales, profits, return on equity, or market capitalisation. While these parameters are good indicators of a company’s health, sometimes they aren’t enough to pick winners. Using a compound annual growth rate (CAGR) methodology for five years, we shortlisted companies that showed positive growth of annual average market capitalisation in end-March 2019 over March 2015.
This left us with 824 companies with a positive five-year CAGR of annual average market capitalisation, out of 2,960 listed companies. Then came the hunt for consistency. This time, we chose to pick companies in which the figure was above 10%. The list shrank to 550 companies. We chose to discard companies that incurred a net loss in any one of the previous five financial years, from FY14 to FY18. Again, consistency on the fundamental aspects of these companies was concerned, we chose to apply the 10%-plus CAGR filter on the revenue and profit figures of these companies. And finally, we narrowed it down to the top 100.
Deputy editors Aveek Datta and T. Surendar, and associate editor Rajiv Bhuva talk more about the list, and other stories from the new issue.