India
Following Recognition of Bad Loans, India’s Banks are Struggling
With news of bad loans mucking up the Indian banking system throughout 2016, the Reserve Bank of India set a March 2017 deadline for banks to release all data on non-performing loans. The data that has been released thus far, however, won’t steady the nerves of investors.
Read MoreIndia Is Not the New China, at Least Not Yet
Opportunities for India lie in increasing movement of labor away from the agricultural sector, increasing overall labor force participation and increasing female labor force participation. These opportunities are also challenges.
Read MoreIndia Has Beaten the World Since 1997
Earnings growth and profitability in India are significantly higher than that in both Asia and the World as a whole. However, the Indian business community operates with higher balance sheet risk, as debt is somewhat higher in the majority of Indian sectors compared to the global average.
Read MoreMassive Profitability in Expensive Indian Consumer Staples
India’s ROE is expected at 16% in 2017, well above the World average. Consumer Staples is the most profitable sector by far, with an ROE of 34%! However, it’s the most expensive sector in India even when taking the high ROE into account.
Read MoreAnalysts Remain Neutral on India
India hasn’t been a “buy” in Asia for the past 5 years. But recently, analysts have moved it from “sell” to “neutral”.
Read MoreThe World’s Fastest Indian (Economy)
Normally used to sitting in China’s shadow, India has recently surpassed its cousin to become the fastest growing economy in Asia. This is mainly the result of heavy private consumption, but government consumption growth has also helped.
Read MoreAnalysts Remain Very Optimistic on India
In the bottom-up country consensus recommendations India hasn’t been a “Buy” in Asia for the past five years. Recently, however, it has gotten stronger recommendations and moved to “Neutral” from “Sell.”
Read MoreIndia Equity FVMR Snapshot: ‘India in Your Hand—Every Week’
India’s ROE is well above the World at 15% and Consumer Staples deliver the highest ROE at 34%! Consumer Staples is also most expensive, and PB is at 12x.
India has been a bit less volatile than the World.
Read MoreIndia Has Fastest GDP Growth in Asia and Strong Fundamentals
The GDP in India is driven by private consumption. India has the highest earnings growth in Asia and strong profitability. Looking at our FVMR, India is relatively attractive in Asia and is mainly driven by strong fundamentals.
Read MoreIndia Equity FVMR Snapshot: ‘India in Your Hand—Every Week’
India Equity FVMR Snapshot: “India in your hand—every week.” This product is a weekly update on the Indian markets. It’s a one-page document that covers the way we invest, which is based on fundamentals, valuation, momentum, and risk—FVMR. Get this proprietary information in your inbox every Monday and you’ll always be up to speed on India equity.
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