Ranking DSIL150 The Method And The Logic

Extensive research has led to the selection of India’s top 150 companies which have created wealth for their promoters, shareholders and the society at large. We have applied a professional approach and method in this selection process as explained below.

- Neerja Agarwal

This year’s list marks Dalal Street Investment Journal’s fifth year of ranking of India Inc. and presenting the DSIJ 150. Ranking provides a universally accepted benchmark of performance with an objective analysis. What is also important is that with time, experience and changing conditions, the way one ranks should also undergo modification. These years have made us a little wiser and we have tweaked the methodology to make it more robust, as will be explained in the following paragraphs.

The study has culminated in the selection of the top 150 corporates of India Inc. and is a result of a meticulously laid out process. What follows is a detailed description of the various steps that have been followed in order to arrive at this most coveted list of toppers. For the purpose of this study, we began with all the listed companies of India. Since our objective was to focus on companies which have been super-achievers, a ‘short period’ study would not have been justified. Therefore, we spread our period of study over the past six years; we then narrowed down the list to include only those companies which have been listed for more than six years.

THE RATIONALE

A long-term study of six years tends to even out any aberration in the results of any particular year and helps in providing a fair idea of the long-term performance. A long-term study weeds out ups and downs which are a natural part of any business. Another reason why a six-year period or long-term study makes more sense is that many infrastructure companies such as power and road construction, and even the strategies of the service sector and manufacturing companies, get executed over a longer period before they begin to reflect on the financials of the company.

THE EXCLUSIONS