Why Similar Companies Trade at Different Valuations | Quick ₹eads

by Karnivesh | 18 February 2026

India's stock market brims with look-alike companies rivals in food delivery or green power yet their price tags diverge wildly. HDFC Bank and ICICI Bank both serve millions, but trade at PE ratios of 18.4x and 17.9x respectively, market caps ₹14.24 lakh crore vs. ₹10.09 lakh crore. Unpack the drivers, and valuation gaps reveal stories of growth, risks, and trust.

Food Delivery Duels: Zomato vs Swiggy

Walk down a busy Delhi or Bengaluru street at dinner time and the scene feels repetitive Zomato and Swiggy delivery riders criss-crossing traffic, insulated bags strapped tight, delivering nearly identical meals to similar customers. Operationally, the two platforms look like twins. Yet in the stock market, they are treated very differently.

Zomato today trades at a steep premium. Its core food delivery business commands a forward EV/EBITDA multiple of around 53x, while its quick commerce arm, Blinkit, is valued at roughly 5.5x EV/sales. Swiggy, despite comparable scale and category leadership, is expected to list at meaningfully lower multiples in its anticipated IPO at a valuation of about $11–13 billion. The divergence boils down to one word: profitability.

Zomato’s FY25 performance marked a decisive inflection. Revenue rose 56% year-on-year to ₹13,545 crore, adjusted EBITDA turned positive at ₹372 crore, and Blinkit’s gross order value surged 93% as store density and order frequency improved. Importantly, Zomato’s food delivery revenues are now about 27% higher than Swiggy’s, giving it operating leverage and stronger brand recall among both consumers and restaurants.

Swiggy, on the other hand, is still largely viewed as a “promise” story strong growth, category leadership, but with profitability still to be proven at scale. Investors are therefore unwilling to assign it Zomato-like multiples until unit economics and cash generation are clearer. Zomato’s stock, trading at over 100x earnings, reflects confidence that execution discipline, contribution margin expansion, and brand moat will sustain profitability. In this duel, the market is paying up not for growth alone, but for growth that has already turned profitable.

Banking Twins: HDFC Bank vs ICICI Bank

Shift the scene to Mumbai’s financial district, and another rivalry plays out this time in glass towers rather than crowded streets. HDFC Bank and ICICI Bank stand shoulder to shoulder as India’s largest private lenders, each with assets exceeding ₹25 lakh crore and CASA ratios hovering around 40%. On the surface, the differences seem marginal. In valuation, too, the gap looks small: HDFC Bank trades at about 18.4x earnings, slightly ahead of ICICI Bank’s 17.9x.

But this narrow spread masks deeper qualitative distinctions. HDFC Bank’s premium reflects trust particularly after its massive merger with HDFC Ltd., which effectively doubled the bank’s balance sheet. Despite the complexity of integration, HDFC has managed to retain deposit stability, protect asset quality, and reassure investors that its conservative culture remains intact. Its ROE stands around 17.5% with a net interest margin of roughly 3.5%, numbers that signal steady, if unspectacular, performance.

ICICI Bank, by contrast, currently posts stronger headline metrics. ROE is higher at about 18.5%, and NIMs are a robust 4.4%, reflecting sharper lending spreads and aggressive growth in retail and corporate credit. However, this aggression brings perceived risk. ICICI’s gross NPA ratio of around 2.1% is nearly double HDFC’s 1.1%, raising concerns about credit costs if the cycle turns.

The market’s verdict is clear: HDFC Bank’s scale, deposit franchise, and predictability command a valuation edge. Its market capitalisation of roughly ₹14 lakh crore exceeds ICICI Bank’s ₹10 lakh crore, despite similar balance sheet sizes. In banking, stability and trust often outweigh incremental profitability and HDFC continues to be priced as the sector’s benchmark.

Renewables Rivalry: Adani Green Energy vs Tata Power

The final comparison plays out in India’s renewable energy race, where ambition, capital, and credibility collide. Both Adani Green and Tata Power are aligned with India’s target of 500 GW of renewable capacity, with solar energy at the core of their strategies. Yet their valuations could not be more different.

Adani Green trades at an eye-watering P/E of around 200x, dwarfing Tata Power’s far more modest 30x multiple. The premium is driven by sheer growth momentum. Adani Green has added close to 10 GW of capacity in a short span, taking its total operational portfolio to about 14 GW. FY25 revenues surged nearly 90%, reinforcing its image as the fastest scaler in India’s clean energy transition.

However, this growth comes at a cost. Adani Green’s debt-to-equity ratio stands near 9x, one of the highest in the sector. Cash flows remain stretched, and profitability is still inconsistent. The shadow of the Hindenburg episode continues to linger, amplifying investor sensitivity to leverage and governance risks. As a result, despite flawless execution on capacity addition, the stock remains volatile and sentiment-driven.

Tata Power offers a stark contrast. Its renewable portfolio is smaller around 7 GW but embedded within a diversified utility model that includes thermal power, transmission, distribution, and EV charging infrastructure. This balance provides cash flow stability, enabling Tata Power to deliver a steady ROE of about 12% without excessive leverage. Investors reward this predictability with a steadier, more defensible valuation multiple.

In essence, Adani Green is priced for perfection, while Tata Power is priced for durability. One is a high-growth, high-risk bet on India’s renewable acceleration; the other is a measured, diversified play on the same theme.

The Common Thread

Across food delivery, banking, and renewable energy, the pattern repeats. Companies with similar scale and opportunity sets trade at very different valuations because markets care deeply about how growth is achieved. Profitability, balance sheet strength, asset quality, and execution credibility determine whether growth is celebrated or discounted.

In every duel, the winner in valuation terms is not always the fastest grower but the one that convinces investors it can grow without breaking.

EV/EBITDA Extremes

Screener data spotlights peers: Huhtamaki India EV/EBITDA 9.71x, PVR Inox 9.60x packaging/entertainment kin with similar ROCE ~7-12%. Jai Corp 115.75x EV/EBITDA towers over peers, betting on steel revival (ROCE 12%).

Chola Financial 1765x? Outlier leverage play vs. Bajaj Finance's grounded 20-25x. Multiples mirror risk appetite Genus Power 268x on infra tailwinds.​

The Valuation Drivers

Growth Trajectory: Zomato's 48% GOV growth premiums over Swiggy's catch-up; Adani Green's 100%+ capacity CAGR lifts despite risks.

Profit Quality: ICICI's higher NIM but HDFC's cleaner book sways sentiment. ROE gaps persist.​

Risk Profile: Adani's leverage discounts; Tata Power's diversification uplifts.​

Market Position: Zomato's 58% delivery share vs. Swiggy 42% justifies EV/sales edge.​

Sentiment/Momentum: Post-IPO Swiggy discounts 20-30%; HDFC merger optics boost.​

Nifty Bank average PE 15-18x hides HDFC/ICICI nuances; renewables 20-200x swing on green hype.​

Peer Picking Pitfalls

Comparable analysis demands nuance industry peers vary by sub-segment, geography. EV/EBITDA suits capital-intensive like power; PE favors profitable banks.​

India's multiples rose 2025: Nifty EV/EBITDA 15x from 12x, reflecting optimism. Yet outliers like PVR Inox (11,871x PE) flag quirks low profits inflate.

Investor Takeaway

Valuations whisper narratives: Zomato's premium bets profitability; Adani Green's stretch chases scale. HDFC's stability edges ICICI's aggression.

In India's bull run (Nifty +20% 2025), dig beyond surface sameness growth rates, margins, risks explain why "identical" firms fetch different prices. Spot the story, seize the spread.