Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Equitymaster poll results: Tatas most trustworthy - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Mar 6, 2009

    Equitymaster poll results: Tatas most trustworthy

    Frauds and scams have become the order of the day in India, be it in politics or the corporate world. Their existence, unfortunately, has been so deeply ingrained in the psyche of us Indians that any eruption of a scandal has probably made us move on with life without really batting an eyelid.

    But then, along came the Satyam fraud which shocked the entire nation. There were myriad reasons for this. First was obviously the scale and the scope of the fraud that left everybody breathless with disbelief. The second was the fact that it was an blue chip IT company (and among the top 4 at that) that should have committed the fraud as the top IT companies were considered the blue-eyed boys of India Inc., since they were the pioneers in putting India on the global map.

    The third probably was the fact that a fraud of such proportions erupted in corporate India when scandals were actually associated with politicians. Not that such cases have not occurred in the past. In fact, they have taken place globally too (think Enron).

    Whatever be the case, the Satyam scandal has shaken the confidence of investors. The auditors not doing their job properly have, in fact, been all the more appalling. After all, the outside world has no choice but to accept the 'audited' financial statements at their face value. The authenticity of the same can only be questioned by the auditors.

    In such a scenario, we at Equitymaster conducted a poll to get a perspective of which our readers think are the companies whose financials are the most trustworthy. The results paint an interesting picture.

    And the result...
    The corporate group, whose financials investors think are the most trustworthy, is the Tata Group with Infosys following close on its heels.

    Rankings for India's most...
    financial reporting
    Admired corporate
    (Previous poll)
    Tata Group 1 1
    Infosys 2 2
    HDFC Group 3 4
    L&T 4 3
    Aditya Birla Group 5 9
    Bharti Airtel 6 6
    Sundaram/TVS Group 7 12
    ICICI Bank 8 15
    Mukesh Ambani Group 9 5
    Anil Ambani Group 10 7
    Source: Equitymaster

    What is interesting to note is that while the stock price of the companies run by the Ambani brothers had zoomed to unjustifiable levels before the stock markets plunged, the general consensus has been that the financial disclosures of these companies (Mukesh Ambani group and Anil Ambani group) leave a lot to be desired, as they are placed at the lowest end of the rankings.

    Does the Satyam scandal mean that there is considerable doubt in the financial statements of India Inc.? Not necessarily and this was reflected in the observations made in the poll. While some felt that many companies resorted to window dressing their accounts, albeit on a smaller scale, others were of the opinion that the financial statements presented are of quality and are not necessarily tainted because of the Satyam fiasco.

    Interestingly, in an earlier poll that we had conducted to gauge which is the most admired corporate, the results were similar with the Tata Group bagging the honours and Infosys having to contend with the runner-up position (see above table). This itself shows that if the management quality is superior, an honest presentation of the financials is a given.

    In those heady days before the meltdown, stockmarket returns were probably considered to be the prime reason to invest in stocks of certain companies. Valuations, sound financials and good quality of managements which are extremely important were not given their due consideration. The global financial crisis and the Satyam saga have changed all that. However, it is better late than never, and it is encouraging to know that that investors are getting themselves better educated on the profile of the companies, their management, business practices and long term prospects of the same. This will ensure that they garner strong returns in the long term.

    India's Most Trustworthy Corporate Group: 2011 Poll | 2012 Poll



    Equitymaster requests your view! Post a comment on "Equitymaster poll results: Tatas most trustworthy". Click here!


    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    Were You Lured By Mr Market's Bait? (The 5 Minute Wrapup)

    Aug 23, 2017

    Mr Market lured investors into believing they'd bitten into a crash. Did you take the bait?

    Deep State First (Vivek Kaul's Diary)

    Aug 23, 2017

    Nowhere was the darkness deeper than in the nation's capital. There, no light shone. No flicker of awareness...observation...learning...or reflection appeared.

    Why Hasn't Warren Buffett Rung the Bell Yet? (The 5 Minute Wrapup)

    Aug 22, 2017

    It's surprising Warren Buffett hasn't warned investors about the expensive stock market? Let us know why.

    Think Twice Before You Keep Money In A Savings Bank Account (Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 23, 2017 (Close)