Large companies to grow larger amid Covid-19 pandemic, says BNP Paribas

Large companies with strong balance sheets may gain market share in FY22 in the aftermath of the Covid-19 pandemic. Conversely, highly leveraged and weak firms may come under pressure to exit or restructure their businesses.

Despite taking a hit on profitability amid the pandemic, companies with strong balance sheets are gaining market share because of consolidation in their respective sectors, says a research note by BNP Paribas Mutual Fund. Further, the tension around Chinese imports seems to be hurting several unorganised players, which used to be competitive because of cheap Chinese goods.

“In an era where growth is scarce, we believe such