Jupiter
INDIA SELECT
The Award listed here should not
be taken as a recommendation.
“India is an incredibly exciting market to invest in. Not only does it offer investors access to one of the fastest growing economies on the planet, but it’s also broad and deep, with over 5000 listed companies, and almost 500 companies with market caps north of $1 billion.”
Avinash Vazirani & Colin Croft, Investment Managers, and Leighton Riley, Investment Director
Investment process
Bottom-up, “Growth at a Reasonable Price” approach
Idea generation
Quantitative screening
Broker
research
Structural
trends
Country
visits
Company meetings
Cash flow generation
Operational efficiency
Low balance-sheet risk
Well-priced quality
Portfolio Conviction-led diversified c. 60–80 stocks
~ 4,700 stocks
Radar screen
200–300 stocks
Watch list
10–20 stocks
Shortlist
5–10 stocks
PORTFOLIO
Indian stock market
Quant
screen
Company
meetings
Sell side
analysts
Thematic
ideas
Earnings
results
Visiting
India
IPOs
Valuation attractive
vs. peers
Earnings underestimated
by street
Favourable changes in management or industry dynamics
Liquidity sufficient
for position size
Earnings backed by cash flows
Efficient use of capital in context
of price paid
Balance sheet liabilities matched
by expected cash flows
60–80 best ideas
WHY INDIA
India has strong growth fundamentals
The South Asian country is the next emerging giant -like China in the 2000s, or Japan in the 1960s. With the country poised to become the world’s third largest economy in the next few years, we think no other country offers this combination of scale, governance and high-visibility growth. The long-term investment case for India is driven by a host of factors including domestic consumption, favourable demographics, technology, and financial inclusion.
Most populous nation on earth
With favourable demographics
On track to become the third largest economy by 2027
(Source: CIA Factbook, Jan 2024)
The Indian market has outperformed other major markets
Over 20 years, the MSCI India outperformed the S&P 500 by 97pp in USD terms
677.2
580.6
238.2
Past performance is no indication of current or future performance. Source: Bloomberg, as at 29.02.24.
Superior forward earnings growth*
14%
12%
11%
10%
4%
India
USA
China
MSCI EM
MSCI ACWI
*Two-years forward EPS growth. Source: CLSA, January 2024 (FY26 over FY24).
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