India is a structural bull market available at a cyclical valuation discount: Nilesh Shah of Kotak AMC
Investors can today access India’s long-term growth story at far more reasonable valuations than during the market’s peak exuberance, says Shah
Nilesh Shah, Managing Director of Kotak Mahindra AMC, has highlighted India's potential as a structural bull market, currently available at a cyclical valuation discount compared to its peak two years ago. Shah, who recently returned from a North America roadshow meeting with various global investors, noted that India remains a strong draw for international capital, despite being available at more reasonable valuations.
He cautioned potential investors against unrealistic return expectations, emphasizing that India offers high-single-digit to low-double-digit compounding over a decade. The investment case is increasingly seen as long-term compounding rather than chasing outsized returns. Shah identified banking and financial services, premium consumption, and modern manufacturing as key opportunities, attributing these to factors like healthy credit growth, low non-performing assets, and the upcoming 8th Pay Commission.
He also called for tax policy reforms to create a more uniform framework for taxing interest income, and advocated for reforms in land, labour, and ease of doing business to sustain double-digit growth in the future.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
