‘Expensive’ India Underperforms Most Of Its Asian Peers
Bloomberg’s sample list shows 199 stocks in India, which meet the criteria of being underperformers.
The Indian market has largely underperformed its Asian peers like Japan and Hong Kong so far this year. Bloomberg’s sample list shows 199 stocks in India, which meet the criteria of being underperformers. Those stocks have returned negative 4.9 percent so far this year, compared with Hong Kong’s gain of 4.5 percent.
Bloomberg’s 12-month blended forward price-to-earnings multiple shows India is the most expensive market in Asia. India trades at 26.1 times, much higher than bigger regional giants like Japan (18.6 times) and Hong Kong (14.9).
The 199 Indian stocks generate the lowest dividend yield in Asia at 0.9 percent. China’s dividend yield is double at 1.8 percent.
Analysts expect India to deliver return of 16.3 percent over the next one year. South Korea, Indonesia and China are some of the Asian peers likely to do better than India.
Bloomberg uses below criteria for generating the sample list of stocks:
- Have a Bloomberg earnings per share estimate.
- Be actively traded.
- Be the primary securities of the companies.
- Be domiciled in the specified region or country.
- Meet market capitalisation constraints corresponding to the specified region.