Leading Indian Companies on US Exchanges: A Market Cap Analysis

The Indian economy’s robust growth, driven by strong domestic demand, favorable demographics, and ongoing digitalization efforts, has positioned the nation as a top investment destination globally. With the International Monetary Fund projecting a 6.3% growth rate for 2023 and 2024, India stands out as the fastest-growing trillion-dollar economy, poised to become the world’s third-largest economy within the next four years.

This economic vigor is mirrored in India’s resilient stock markets. While thousands of companies are listed on domestic exchanges, only a select few trade on US stock exchanges. American Depository Receipts (ADRs) offer a convenient avenue for international investors to access Indian securities, as they are traded and settled in dollars, eliminating many of the complexities associated with holding non-US stocks.

Let’s examine the top five Indian ADRs trading in the US, ranked by market capitalization.

HDFC Bank Limited (HDB)

Market capitalization: $140.35 billion

HDFC Bank Limited, India’s largest company by market cap, holds a significant 13.3% weight in the Nifty 50 index. Established in 1994 following banking sector liberalization, HDFC Bank has achieved numerous milestones. A pivotal moment came in April 2022 with the announcement of its merger with HDFC Ltd, India’s leading housing finance company. This merger, completed on June 30, 2023, marks HDFC’s evolution into a comprehensive financial services conglomerate.

In the fiscal year 2022-23, the bank reported standalone revenue of ₹1,180.57 billion, a 16% year-over-year increase, with profit after tax growing 19.3% to ₹441.09 billion. For Q2 FY2023-24, profit after tax reached ₹159.8 billion ($1.92 billion). However, HDFC’s stock has experienced a 16.09% decline year-to-date.

Dr. Reddy’s Laboratories Limited (RDY)

Market Capitalization: $11.09 billion

Dr. Reddy’s Laboratories Limited, a global pharmaceutical entity founded in 1984, offers a diverse portfolio including APIs, generics, branded generics, biosimilars, and OTC products. The company aims to expand its reach to 1.5 billion patients by 2030 and has been at the forefront of ESG practices since 2004.

In FY2022-23, Dr. Reddy’s achieved a 15% revenue growth, reaching ₹245.9 billion ($2.99 billion), driven by new product launches and growth in existing and new categories. Q1 FY2023-24 saw a remarkable 36% year-on-year revenue increase to ₹67.38 billion. The stock has appreciated by 30.92% year-to-date.

Infosys Limited (INFY)

Market Capitalization: $71.91 billion

Infosys, established in 1981 with just $250 in initial capital, has grown into a global leader in digital services and consulting. The company went public in India in 1993 and became the first Indian IT firm to list in the US. Infosys is now the fourth-largest company in India by market cap.

For FY2022-23, Infosys reported industry-leading revenue growth of 15.4% with a 21.0% operating margin. Its global revenue reached $18.2 billion, up from $16.3 billion in FY2021-22. In Q2 FY2023-24, Infosys generated $4.71 billion in revenues, reflecting a 2.5% year-on-year growth. The stock has seen a 4.83% decrease in 2023.

ICICI Bank Limited

Market Capitalization: $80.33 billion

ICICI Bank Limited, founded in 1994 during India’s banking sector liberalization, was the first Indian company to list on the NYSE in 1999 and the first Asian bank outside Japan to do so. It currently ranks as the third-largest company in India by market cap.

In FY2022-23, ICICI Bank reported a profit after tax of ₹318.96 billion ($3.88 billion), a 36.7% increase from the previous fiscal year. Q1 FY2023-24 saw profit after tax grow by 39.7% year-on-year to ₹96.48 billion ($1.2 billion). The stock has gained 2.19% year-to-date.

Wipro Limited (WIT)

Market Capitalization: $25.74 billion

Wipro Limited, a leading technology services and consulting firm, was established in India in 1945 and listed in the US in 2000. The company has made several strategic acquisitions in recent years, including CAS Group, Rizing, Edgile, LeanSwift, and Capco.

In FY2022-23, Wipro’s revenue increased by 14.4% year-on-year to ₹904.9 billion ($11.1 billion), though profit after tax declined to ₹113.51 billion from ₹122.19 billion in the previous year. Q2 FY2023-24 saw revenue reach ₹225.2 billion ($2.7 billion), a slight 0.1% year-on-year decrease. Wipro’s stock has appreciated by 1.29% year-to-date.

For investors seeking broader exposure to the Indian market, exchange-traded funds offer a diversified alternative to individual ADRs.

Note: This analysis is based on data as of October 18, 2023. The Indian fiscal year ends on March 31. Currency conversions reflect exchange rates at the time of reporting. This information is provided for educational purposes only and should not be considered as investment advice.