India Is Losing Its Premium To Emerging Market Peers -Chakri Lokapriya MD, TCG AMC
Date14 Mar 2018
|Reference Link: https://www.bloombergquint.com/markets/2018/03/14/india-is-losing-its-premium-to-emerging-market-peers|
The primary factor responsible for India’s premium shrinking in the emerging market space is the uncertainty of earnings growth for the next 12-months, said Chakri Lokapriya, Managing Director, TCG Asset Management.
The secondary factor contributing to the decline in price-to-earnings multiple for India is the decline in return on equity which is trading below historic levels.
“An upward revision of the financial year 2018-19 expected earnings would set the stage for a reversal,” Lokapriya said.