Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68290
Volume:
10 |
10 |
Oct 2026
Pages:
1-14
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Commerce
St. Mary's College, Yousufguda
Department of Commerce
St. Mary's College, Yousufguda
Department of Commerce
St. Mary's College, Yousufguda
This study examines whether domestic Indian firms demonstrate greater resilience and competitiveness relative to foreign subsidiaries operating within the same industry, using stock price performance as the basis for comparison. Five sector pairs are analyzed: Britannia vs. Nestlé India (FMCG), Mahindra & Mahindra vs. Maruti Suzuki (Automobile), Bharti Airtel vs. Vodafone Idea (Telecom), Asian Paints vs. Kansai Nerolac (Paints), and Dr. Reddy's Laboratories vs. Pfizer India (Pharmaceuticals). Using daily NSE closing-price data spanning FY2021-22 to FY2025-26, the study computes yearly average price, mean monthly return, standard deviation, coefficient of variation, compound annual growth rate (CAGR), and Sharpe ratio for each firm, within an exploratory, descriptive research design grounded in the Efficient Market Hypothesis. The findings show that domestic firms recorded higher CAGR and mean monthly returns than their MNC counterparts in all five sectors studied, with lower volatility in four of the five sectors. Telecom emerged as the strongest case of domestic resilience on both return and risk, with Bharti Airtel substantially outperforming Vodafone Idea on every metric, while Automobile was the only sector where the domestic firm's return advantage came with marginally higher volatility. The Paints sector showed relative rather than absolute resilience, with the domestic firm recording smaller losses rather than outright growth. These results provide firm-level empirical evidence in support of the domestic resilience narrative within the Indian equity market, suggesting that domestic firms across a range of industries have been able to compete effectively and in these cases outperform their multinational counterparts on a risk-adjusted basis.
KEYWORDS
● Domestic firms won on a CAGR in all 5 of 5 sectors (FMCG, Automobile, Telecom, Paints, Pharma) once both split artifacts were corrected. ● Domestic firms won on mean monthly return in all 5 of 5 sectors, same pattern. ● Volatility favoured domestic firms in 4 of 5 sectors (FMCG, Telecom, Paints, Pharma); Automobile is the only sector where the domestic firm carried marginally more risk (6.55% vs. 5.56%). ● Domestic firms won on Sharpe ratio in all 5 of 5 sectors. ● Telecom remains the strongest piece of evidence for the domestic resilience thesis, the domestic firm won on both dimensions by the widest margin in the sample. ● During analysis it was found that Nestlé India underwent a stock split of 1:10 in January 2024. Pre-split historical prices have been adjusted by a factor of 0.1 to ensure comparability of data across the entire study period. ● Dr. Reddy’s Laboratories underwent a stock split of 1:5 in October 2024.pre-split historical prices have been adjusted by a factor of 0.2 to ensure comparability of data across the entire study period. ● This depicts that Domestic Indian firms have demonstrated resilience across several sectors by various metrics in the observed time period (Apr 2021 - Mar 2026).
1. Bagchi, R., 2023. Impact of Corporate Performance Indicators on Stock Price: A Study on Select FMCG Companies in India. Sustain. Excell. Contemp. Bus. Perspect. 209. 2. Barot, B., Japee, G., 2021. A study on financial performance of selected telecom companies in India. Excell. 13, 1–14. 3. Bhange, A.V., 2022. Financial overview of telecom sector in India with reference to Bharti Airtel (PhD Thesis). Nagpur University. 4. Bhattacharyya, S., Chatterjee, S., 2025. COMPARATIVE STUDY OF DOMESTIC AND FOREIGN PHARMACEUTICAL FIRMS IN INDIA-THROUGH LENS OF RATIO. 5. Biswas, B., 2018. Analysis of Profitability and Dividend Payout: A Study on Some Select Companies in Indian Paint Industry. Sankalpa 8, 18–23. 6. Chakraborty, P., Dhingra, D., 2024. A Study on the Financial Performance of Mahindra and Mahindra Company. 7. Dash, M., Kamath, A., Charu, K., Nathan, A., Chakradha, Pasha, A., Nath, R., 2016. Analysis of Customer Brand Preferences among Indian Paint Companies using Analytic Hierarchy Process. AIMT J. Manag. 6, 23–27. https://doi.org/10.65301/aimt.2016.6.II.676 8. Fama, E.F., 1970. Efficient capital markets: A review of theory and empirical work. J. Finance 25, 383–417. 9. Joe, T.K., 2004. Pfizer, Inc. v. Dr. Reddy’s Laboratories, Ltd. 359 F. 3d 1361 (Fed. Cir. 2004). Intell Prop Bull 9, 77. Majumdar, R., 2010. Consumer behaviour: Insights from Indian market. PHI Learning Pvt. Ltd.
Publication Date
10/24/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
3
Total views since publication
PDF Downloads
11
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...