The curious case of companies commanding high valuations with low earnings


  • The Burgundy Private Hurun India 2022 list includes 61 companies with a turnover of less than ₹1,000 crore in FY22.
  • The company with the greatest disparity between value and revenue is GlobalBees, a startup that helps brands scale and sell their products in marketplaces.
  • The list also includes unicorns such as CRED, Spinny, and two Adani Group companies.

While most of the valuable companies according to the Burgundy Private Hurun India list generate thousands of crores in revenue, valuing 2-10x of their FY22 revenue, there are some companies like GlobalBees that have a 253x multiple valuation of their revenue.

According to the Hurun list, the top ten companies with the largest differences in valuation and revenue included two Adani Group companies, apart from unicorns such as CRED, Spinny and others.

“Oddly enough, some of India’s most valuable companies had surprisingly low sales. 61 of the 2022 Burgundy Private Hurun India 500 companies had a turnover of less than ₹1,000 crore in FY 2022. For example, Adani Total Gas had a turnover of ‘only’ ₹3,248 crore and only 570 employees, yet had a market capitalization of ₹ 3,96,245 crore while unicorn Physics Wallah was valued at ₹ 9,100 crore despite generating less than ₹ 233 crore in sales in FY 2022,” said Anas Rahman Junaid, MD and Chief Researcher, Hurun India.

For example, GlobalBees, the company with the largest differences in value and revenue, is a startup that focuses on nurturing brands and helping them improve their sales. Another in the list is Bajaj Holdings, an investment company of the Bajaj Group that identifies new investment opportunities.

“Value is perhaps the best way to measure a company’s performance, as value considers not only a company’s current performance, but also its future potential. For example, if a company is valued at $30 billion, that means investors believe it will generate a $30 billion profit within ten years,” Junaid added.

Another company with a big difference in value and revenue is CRED, a fintech company that runs a rewards-based credit card payment app. Spinny, a new start-up that provides an online platform for used car buyers, is also on the list.

RankCompanyRatio between value and turnoverValue (₹ cr)Revenue (₹ cr)
2Bajaj Holdings15274,128487
6Adani total gas1223,96,2453,248
9to grow6724,800369
10Adani green energy603,33,1065,548
11Physics Wallah*399,100233

Source: Hurun Research Institute, 2022 Burgundy Private Hurun India 500, BSE

The patient capital

Although two companies of the Adani Group appear in the list of the top ten companies with the largest difference between their value and revenue, the group is focusing on raising new funds.

Earlier in November, the group’s flagship Adani Enterprises announced plans to raise ₹20,000 crore through a new public offering (FPO).

“We have done strategic capital. The next capital is patient capital. Indian mom and pop investors are investing for their children and grandchildren,” the company’s chief financial officer, Jugeshinder Singh, said in a statement. Bloomberg interview.


Adani may be the richest Indian, but Ambani’s RIL retains the top spot on Hurun’s list of most valuable companies

Top 10 companies in India with the highest turnover in 2022, according to Hurun

Serum Institute of India, BYJU’S, Ola, OYO in Top 10 Valuable Private Companies


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