Woking further on Indian equities return, I tried to find out Survial (1-Motrality rate) of listed corporate in BSE since 1959. The objective to was to identify Cockroach (survivor) and Dianosour (extinct) corporate on BSE over 6 decades. The earliest price list I can source was 30 March, 1959. That became my starting point.
I tried to get update about the companies which were listed in 1959 from website and other sources (mainly MRTP Report from MCA about business group in 1969). From the information collected and anylsed by me, I classified, whether the company is still surviving and listed or exinct (may be active but not listed). The objective was if someone applied coffee can approach, whether s/he would have got any value at end of 6 decade through stock exchange.
To my surprise (subject to limitation mentioned in enclosed presentation), nearly 40% of companies listed in BSE in March 1959, are still getting traded on stock exchange. This is was big learning for me as I expect very high mortality rate for Indian compannies.
In second part of series, I shall try to calculate return generated by companies over the period (since listing/ over 5 decades). Since, I have my limitation of time, the update on thread may not be regular. However, aim to work at least on 10 companies to know which has generated higher wealth/ highest return for minority investor.
Please share your feedback on the thread.
Analysis of Surival Rate of Indian Corporate 1959-2020 period.xlsx (50.3 KB) Analysis of Survival rate of Indian companies.pptx (68.7 KB)