ETMarkets Smart Talk | Don't judge India by Nifty's 21x PE; stock-level valuations still offer opportunities: Emkay Investment Managers: Kashyap Javeri
Kashyap Javeri suggests India’s market valuation premium is misleading due to index concentration. He highlights strong mid- and small-cap earnings growth, reliable SIP inflows, and easing FPI selling, while cautioning against risks like rising crude prices and currency fluctuations.
India may appear to be trading at a premium compared to other emerging markets, with the Nifty 100 currently valued at 21 times earnings, while several other EMs are valued between 14 and 17 times earnings. However, simply looking at headline price-to-earnings multiples may not provide the full picture, according to Kashyap Javeri, Head of Research and Fund Manager at Emkay Investment Managers Limited.
Javeri argues that the composition and concentration of indices across emerging markets can lead to misleading comparisons based solely on index-level valuations. Instead, investors should focus on individual company valuations, particularly at the stock level, where opportunities remain attractive on a PEG basis.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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