Companies should focus on business growth, profitability rather than just share price: NSE chief

Updated 2 July 2026 7:32 PM

{"title":"NSE Chief Calls for Business Growth Over Share Price Hype","excerpt":"Ashish Chauhan, MD & CEO of NSE, urges companies to build sustainable businesses and let true performance drive market valuation.","body_html":"<p>In a recent address that captured the attention of market watchers, Ashish Chauhan, the Managing Director and Chief Executive Officer of the National Stock Exchange (NSE), made a clear statement: companies should prioritize sustainable growth and profitability over the relentless pursuit of share‑price gains. His remarks come at a time when many firms are caught in a cycle of short‑term performance metrics, often at the expense of long‑term value creation.</p>n<h2>Setting the Stage – NSE’s Role in India’s Capital Markets</h2>n<p>The NSE is the largest stock exchange in India by trading volume and a key barometer of the country’s economic health. With a market cap that eclipses many global exchanges, the NSE’s policies and leadership messages can influence corporate strategy and investor sentiment across the board. Chauhan’s recent comments are therefore not just a corporate pep talk; they carry the weight of the nation’s financial ecosystem.</p>n<h2>Why the Share‑Price Focus is a Problematic Trend</h2>n<p>For years, the mantra “share price is king” has dominated boardrooms. While a rising stock price can boost a company’s market valuation, it does not always reflect underlying fundamentals. The core issues with a share‑price‑centric approach include:</p>n<ul>n<li><strong>Short‑termism:</strong> Companies may prioritize quarterly earnings over strategic investments.</li>n<li><strong>Misaligned incentives:</strong> Executives and shareholders can become more focused on stock performance than on sustainable business practices.</li>n<li><strong>Volatility:</strong> Market sentiment can swing wildly, sometimes disconnected from a firm’s actual operational health.</li>n<li><strong>Innovation stifling:</strong> R&D and product development may be sidelined if they do not produce immediate financial returns.</li>n</ul>n<h2>Chauhan’s Core Message – Build Sustainable Businesses</h2>n<p>In his speech, Chauhan emphasized that market valuation should mirror genuine business performance and growth. He urged entrepreneurs to concentrate on their core operations and to adopt a long‑term perspective. Even incremental improvements in profitability and innovation, he noted, can eventually attract market recognition and unlock significant growth opportunities.</p>n<h2>Practical Steps for Companies to Shift Focus</h2>n<p>Below are actionable guidelines that firms can adopt to align with Chauhan’s vision:</p>n<ul>n<li><strong>Re‑evaluate Performance Metrics:</strong> Shift from earnings‑per‑share (EPS) to metrics like Return on Invested Capital (ROIC) and Customer Lifetime Value (CLV).</li>n<li><strong>Invest in Core Capabilities:</strong> Allocate budgets to R&D, talent development, and process optimization rather than short‑term marketing pushes.</li>n<li><strong>Transparent Communication:</strong> Regularly disclose long‑term strategy and progress to investors, reducing reliance on speculative price movements.</li>n<li><strong>Align Executive Compensation:</strong> Tie a significant portion of remuneration to long‑term milestones such as sustainable revenue growth, ESG scores, and innovation outputs.</li>n<li><strong>Build Resilient Supply Chains:</strong> Diversify suppliers and adopt technology to reduce operational risks that can derail long‑term plans.</li>n<li><strong>Engage Stakeholders:</strong> Foster dialogue with employees, customers, and communities to build brand equity that supports enduring value.</li>n</ul>n<h2>Implications for the Broader Economy</h2>n<p>Chauhan’s call has ripple effects beyond individual firms. If companies adopt a growth‑and‑profitability mindset, the following outcomes could materialize:</p>n<ul>n<li><strong>Stable Market Valuations:</strong> Share prices would better reflect intrinsic worth, reducing volatility driven by speculative trading.</li>n<li><strong>Higher Investment in Innovation:</strong> Firms would channel resources into R&D, fostering technological advancement and competitiveness.</li>n<li><strong>Improved Corporate

About the Author

,

View All Posts

Related Stories

राम मंदिर में चढ़ावा चोरी: सभी आरोपियों के ठिकानों पर छापेमारी, अब तक 79 लाख बरामद; अविनाश क…

लखनऊ में शार्टकट के चक्कर में जान जोखिम में डालकर निकल रहे बच्चे और बड़े…

लखनऊ में गायत्री परिवार ट्रस्ट आलमबाग ने युवा दिव्य जागरण कार्यशाला का किया आयोजन…

Mann Ki Baat: ‘समुद्र से लेकर आकाश तक हमारा भारत सुरक्षित और आत्मनिर्भर’, मन की बात में क्या…