Firms pull back on investor meets amid weaker earnings, bearish sentiment

The number of investor meets conducted by companies has declined from its peak amid weaker earnings and bearish sentiment.

 

There has been a double-digit decline in key sectors, with some, such as fast-moving consumer goods (FMCG), seeing investor meets drop by over 35 per cent from their post-pandemic peak, according to data from Primeinfobase.com, shared with Business Standard.

 

While sectors like services and telecommunications have continued to increase engagement, the overall number of meetings across companies has fallen by over 7.4 per cent from its peak.

 

The analysis looked at the number of investor meetings conducted on a rolling 12-month basis. These meets peaked in 2023 and have largely remained below that level since. Companies ended January 2025 with fewer meetings than in January 2024. Investor meets give a platform for companies to share insights into their business, often with institutional investors, and to respond to questions about the business for existing and prospective investors.

 

The number of such meetings had risen in the period after Covid-19 when earnings were on a strong footing and markets were booming. 

 

The post-pandemic market boom led to a new generation of management teams, investor relations firms, and investment bankers actively promoting companies’ value propositions to investors, said independent market expert Deepak Jasani.

 

Many older-generation promoters, who used to be secretive about their businesses, have also started communicating more about the state of companies. This comes as they realised that it brings in more investors and can result in higher valuations. The broad trend is getting positive in terms of corporate governance, according to Jasani. “They are also adapting,” he said.

 

But the broader trend can see a blip during periods of softer growth as is being seen currently, said Jasani.

 

“...promoters and the management are less willing to meet people when they witness softness in the business environment...when the situation is dicey, they would not want to comment on the topline growth, margin movements, competitive environment or capex plans,” he said.

 

There is a cyclical pattern in company communication, said Shriram Subramanian, founder and managing director of domestic proxy advisory firm InGovern Research Services.

 

Many companies tend to be more communicative when things are going well and tend to go into a shell when there isn't as much good news to share, he suggested.

 

Subramanian pointed out that a few companies had stopped quarterly conference calls during the pandemic downturn. This may also play out in the current cycle, suggested Subramanian. “I’m sure that if this bear market persists...more skeletons will come out of the closet,” he said.

 

Sectoral data shows that diversified conglomerates have experienced the sharpest decline (-43.2 per cent) in investor meets since the post-pandemic period. This is followed by FMCG (-37.6 per cent) and financial services (-19.8 per cent). Other sectors, including utilities, consumer discretionary, energy, and information technology, have also seen double-digit declines from their peaks.

 

The rise in investor meets after the pandemic was driven by promoters aiming to boost valuations, as well as increased institutional demand, according to Subramanian.

 

Mutual funds have received record inflows in recent years, with the number of stocks they invest in rising from around 800 in 2019 to over 1,100, according to Prime Database data. The number of investor meets would accordingly rise as institutional investors have exposure to a greater number of companies.

 

A high number of stock market listings has also contributed, according to Pranav Haldea, managing director at Prime Database. Since 2019-20, over 270 companies have listed on the mainboard.

 

This would have also contributed towards the higher number of meets, particularly because companies and investors tend to meet more in the initial period after being listed on the stock exchange.

 

“Interest in companies is typically highest at the time of IPO and for a year or so after listing,” said Haldea.