The World’s Fastest Indian (Economy) – Four Pillars of GDP: Heavy Private Consumption

Watch the video with Andrew Stotz or read a summary of the country profile on India.

Four Pillars of GDP: Heavy Private Consumption

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. Investment is the one segment that has slowed,  down -0.67 in contribution to GDP growth compared to +1.36 during the second quarter of 2016. Net exports, which were down in the second quarter, rose in the third quarter.

Highest Earnings Growth in Asia

Consensus earnings estimates are expected to grow at the fastest pace in Asia in 2017, and return on equity next year is expected to be the second highest. These stats are mirrored, however, in a much pricier valuation.

Notes From Schwarzman, Sternlicht, Robert Smith, Mary Callahan Erdoes, Joseph Tsai And Much More From The 2020 Delivering Alpha Conference

Stephen SchwarzmanThe following are rough notes of Stephen Schwarzman, Steve Mnuchin, and Barry Sternlicht's interview from our coverage of the 2020 CNBC Institutional Investor Delivering Alpha Conference. We are posting much more over the next few hours stay tuned. Q2 2020 hedge fund letters, conferences and more One of the most influential investor conferences every year, Read More

The World's Fastest #Indian (#Economy)

A. Stotz Four Elements: India’s rank relative to Asia

Overall, India is moderately attractive in Asia considering all our four elements: Fundamentals, Valuation, Momentum, and Risk.

Fundamentals: ROE is second highest in Asia at 15.9% expected in 2017.

Valuation: India’s stock market has the highest forward valuation in Asia.

Momentum: The market has a strong earnings momentum but poor price momentum.

Risk: The market has a moderate beta compared to Asia ex-Japan.

Strong performance in Energy and Telecoms

Top 3 largest sectors: Financials: 20% of the market. Consumer Discretionary: 12%. Materials: 12%.

Best sector & stock: Energy: +6.4% & Cairn India: +26%

Worst sector & stock: Real Estate: -11.8% & DLF: -26.3%

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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company providing institutional investors with ready-to- invest portfolios in Asia that aim to beat the benchmark through superior stock selection. The company also provides buy- and sell-side clients with financial models to value any company in the world and World Class Benchmarking to determine what companies are financially world class. Previously, as Head of Research at CLSA, Andrew was voted No. 1 Analyst in Thailand in the Asiamoney Brokers Polls for 2008 and 2009. He was also voted No. 1 Analyst in Thailand in the 2009 Institutional Investor magazine All-Asia Research Team Report. Andrew earned his PhD in finance at the University of Science and Technology of China in Anhui province, with a focus on answering questions raised by fund managers and analysts during his career about picking stocks and managing portfolios. In addition, Andrew has been a lecturer in finance for 22 years at various universities in Thailand. Since 2013, he has been the president of the CFA Society of Thailand. He is also the author of How to Start Building Your Wealth Investing in the Stock Market.