India Is Losing Its Premium To Emerging Market Peers -Chakri Lokapriya MD, TCG AMC

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.