Analysts Remain Neutral on India
Watch the video with Andrew Stotz or read Watching the Street: India below.
Consensus Recommendations: India
India hasn’t been a “buy” in Asia for the past 5 years. But recently, analysts have moved it from “sell” to “neutral”.
Learn more: How to Benefit from Our Watching the Street Charts
Aegis Logistics provides supply chain management services to the oil, gas and chemical industries. The share price has increased a whopping 800% in 3 years and 35% YTD.
Bank of India is a less exciting stock in the financial sector, where low asset quality has pushed down the share price by about 60% since the start of 2015.
Consensus Earnings Estimates: India
Analysts have estimated EPS to grow an average of 20% for the past 5 years, while earnings have fallen by 6% on average over the same time period—quite a divergence.
In FY2017, Tata Communications is expected to turn its loss in the previous year into the highest EPS the company has seen since 2009.
After a price increase in voice calls earlier this year, Idea Cellular lost market share and analysts expect continued lower earnings.
Consensus Target Prices: India
Indian analysts underestimated the returns during the 2012-2014 period, but that turned to overestimation in 2015.
The 12-month consensus forward return sits at 14% vs 3% in August 2016, mainly due to poor overall market performance.
Two of the three financials with the highest target price expected return provide loans secured by gold: Manappuram Finance and Muthoot Finance.
Steel Authority of India has the most negative recommendations on our list and has an expected downside of 33%.
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