Addressing the 9th JITO Incubation & Innovation Foundation (JIIF) Day event, he said a company’s market valuation should be a reflection of its business performance and growth.

The objective of an entrepreneur should be to expand the business and increase shareholder value through stronger fundamentals, he suggested.

“If the company’s profit increases, the share value should increase. You cannot keep increasing value without creating actual business growth,” Chauhan said.

He said entrepreneurs need to remain focused on their core business rather than getting influenced by market trends or peer pressure.

Live Events

Companies that consistently grow and deliver results eventually get recognised by the market, he added.
The public markets reward profitable businesses with a valuation that private balance sheets cannot match. A company earning an annual profit of Rs 2 crore, he said, could command a market capitalisation of Rs 40 to 50 crore once listed, giving the promoter room to raise capital, bring in partners and expand operations. Listing also gives a company its own currency, Chauhan said.

A listed promoter can use stock to acquire other businesses, draw in partners and reward staff through stock options, he said, citing the early use of employee stock options at Infosys by NR Narayana Murthy and Nandan Nilekani to attract talent the company could not otherwise have hired.

He also highlighted the importance of innovation in entrepreneurship, saying innovation is not limited to major technological breakthroughs but can happen through small improvements in everyday processes.

“Whatever you do, if you do it differently and in a better way, that is also innovation,” Chauhan said.

Chauhan said the journey of building a business involves significant challenges and persistence, with many founders facing years of struggle before achieving success.

On the listing journey, he said getting listed on the stock exchange is not as difficult as often perceived, but companies need to focus on compliance, governance and transparency after entering the public markets.

Capital markets provide opportunities for companies to raise funds and grow, but businesses need to maintain discipline and focus on long-term value creation, Chauhan stated.

This article was written by

Follow

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8