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Top 5 Indian ADRs By Market Cap

Robust macroeconomic factors, strong domestic demand, favorable demographics, digitalization and a proactive government have placed India among the top investment destinations. With a projected growth rate of 6.3% for 2023 and 2024 by the IMF, India is the fastest growing trillion-dollar economy. The country is poised to assume the position as the third-largest economy in the world in the next four years.

India’s economic strength is reflected in its resilient stock markets. While India has more than 5,000 listed companies on domestic exchanges, only a handful trade on U.S. stock exchanges. Since American Depository Receipts (ADRs) are traded and settled in dollars, they eliminate many of the obstacles of holding non-U.S. securities and hence emerge as a convenient route to pick companies.

Here’s an overview of the top five Indian ADRs trading in the U.S. based on market capitalization.

1. HDFC Bank Limited (HDB)

Market capitalization: $140.35 billion

HDFC Bank Limited is the largest company in terms of market capitalization in India. HDFC holds a 13.3% weightage in the Nifty 50 index, which is the pre-eminent large cap index in India constituting the 50 largest companies listed on the exchange. HDFC Bank was incorporated in August 1994 soon after the policy changes allowed private sector banks to operate in India. Over the decades, the company has witnessed many milestones with a very important one announced in April 2022, which was the ‘merger decision’ of HDFC Bank and HDFC Ltd (India’s premier housing finance company). On June 30, 2023, HDFC Bank announced the successful completion of merger of HDFC Limited into HDFC Bank Limited. The merger marks the beginning of HDFC’s transition from a bank to a financial services conglomerate straddling key financial services and products. During FY2022-23, the bank (standalone) posted a revenue of ₹1,180.57 billion reflecting an increase of 16% over prior year and a 19.3% increase in profit after tax to 441.09 billion. The profit after tax for Q2 FY2023-24 stood at ₹159.8 billion ($1.92 billion). HDFC is down by 16.09% year-to-date.

2. Dr. Reddy’s Laboratories Limited (RDY)

Market Capitalization: $11.09 billion

Dr. Reddy Laboratories Limited is a global pharmaceutical company which was began its journey in 1984 with a “modest investment and bold vision.” Its portfolio of products and services includes APIs, generics, branded generics, biosimilars, and OTC. Dr. Reddy aspires to triple its current reach and touch over 1.5 billion patients by 2030. The company was an early adopter of ESG practices and released its first Sustainability Report in 2004. The company aims to become water positive by 2025 and adopt 100% renewable power by 2030. The company reported a revenue growth of 15% to reach ₹245.9 billion ($2.99 billion) in FY2022-23. The numbers for FY2022-23 were primarily on the back of new product launches across its businesses and growth in existing and new categories. During Q1 FY2023-24, the company’s revenue witnessed a year-on-year growth of 36% to touch ₹67.38 billion. The stock is up by 30.92% year-to-date.

3. Infosys Limited (INFY)

Market Capitalization: $71.91 billion

Infosys was established in 1981 in Pune, India with an initial capital of just $250. Over the years, Infosys emerged as a global leader in next-generation digital services and consulting. The company was listed on stock exchanges in India in June 1993. Infosys touched a revenue of $100 million in 1999 and became the first IT company from India to be listed in the U.S. By 2016, its revenue touched $100 billion on a LTM basis. Infosys is the fourth-largest company in India in terms of market capitalization. In FY2022-23, Infosys achieved industry leading revenue growth of 15.4% with a healthy operating margin of 21.0%. Its revenue for FY2022-23 stood at ₹1,467.67 billion as compared to ₹1,216.41 billion in FY2021-22. In USD, the global revenue amounted to about $18.2 billion, a significant increase in comparison to the $16.3 billion in FY2021-22. Infosys delivered $4.71 billion in Q2 FY2023-24 revenues with year-on-year growth of 2.5%. Infosys is down by 4.83% in 2023 so far.

4. ICICI Bank Limited

Market Capitalization: $80.33 billion

ICICI Bank Limited was promoted by ICICI Limited, an Indian financial institution, in 1994 following the liberalization in the banking sector in India. ICICI Bank was the first Indian company to be listed on the NYSE in 1999 as well as the first bank from Asia ex-Japan. ICICI Bank is currently the third-largest company in India in terms of market capitalization after HDFC Bank and Reliance Industries. Its subsidiaries are among the largest companies in areas of securities brokerage, asset management, private equity, and insurance. During FY2022-23, ICICI Bank reported a profit after tax to the tune of ₹318.96 billion ($3.88 billion), a 36.7% rise from 233.39 billion in the previous fiscal. During Q1 FY2023-24, ICICI’s profit after tax grew by 39.7% year-on-year to ₹ 96.48 billion ($ 1.2 billion). ICICI is up by 2.19% year-to-date.

5. Wipro Limited (WIT)

Market Capitalization: $25.74 billion

YTD performance: 1.29%

Wipro Limited is a leading technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. The company was established in India in 1945 and was listed in the U.S. in the year 2000. Some of the acquisitions made by Wipro in the last two financial years include CAS Group, Rizing, Edgile, LeanSwift, and Capco. Wipro has witnessed some weakness in its earnings in recent quarters. In FY2022-23, Wipro reported a revenue of ₹904.9 billion ($11.1 billion), an increase of 14.4% year-on-year while its profit after tax was down to ₹113.51 billion as compared to ₹122.19 billion in the previous fiscal. During Q2 FY2023-24, Wipro’s revenue reached ₹225.2 billion ($2.7 billion), a decrease of 0.1% year-on-year. Its shares are up by 1.29% year-to-date.

Investors looking to take a more diversified exposure to India should consider exchange traded funds.

The report has been carefully prepared, and any exclusions or errors in it are totally unintentional. The author has no position in any stocks mentioned. Investors should consider the above information not as a de facto recommendation, but as an idea for further consideration. Fiscal year for Indian companies ends March 31 and Year-to-Date (YTD) returns and market capitalizations are as of October 18, 2023. The conversion of INR into USD is according to the exchange rate at the time of results.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Prableen Bajpai

Prableen Bajpai is the founder of FinFix Research and Analytics which is an all women financial research and wealth management firm. She holds a bachelor (honours) and master’s degree in economics with a major in econometrics and macroeconomics. Prableen is a Chartered Financial Analyst (CFA, ICFAI) and a CFP®.

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