Valuations in India looking stretched

PM Capital

PM Capital

A significant amount of foreign capital has been entering India since the election of Prime Minister Modi. Expectations are for major economic reforms and infrastructure investment, however this could be a challenge according to PM CAPITAL’s Paul Moore. “It will come down to the successful implementation of this government policy, which is notoriously hard to predict in India given the structure of the government, state vs federal conflict of interest, et cetera. The market believes it’s a fait accompli.” Local companies indicate that progress has been slow, with projects being held up in the approval stage. While India is a beneficiary of lower commodity prices and has a range of great consumer companies, the market has already seen this, with Colgate and Nestle India both having PE ratios above 30. “Investors should be asking at what point do they sell India due to valuation.” The discussion starts at 6:02 (VIEW LINK).


PM Capital
PM Capital

At PM Capital we are not afraid to be different, we search the world for undervalued stocks, we avoid the trap of “group think” and prioritise company valuation over all other aspects. Founded in 1998, PM Capital is part of the Regal Partners...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment