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Last Updated : Jun 14, 2016 11:50 AM IST | Source: CNBC-TV18

How you can make money with richly valued stocks: Fund manager

Divya Mathur has been investing in India since the late 90s and the one challenge that he, like most fund managers in India, faces is seemingly rich valuations.


Divya Mathur has been investing in India since the late 90s and the one challenge that he, like most fund managers in India, faces is seemingly rich valuations.

Mathur, ‎Emerging Markets Portfolio Manager at Martin Currie, tells CNBC-TV18's Udayan Mukherjee about his investment approach, opportunities in India and whether there is more pain left for emerging markets.

Challenges of investing in India

One of the challenges in India is always valuations and it is always near-term valuations. So, I have been investing in India since late 90s and India is a great market for long-term sustainable businesses and business models.

So companies which may look expensive in the short-term, if you believe in their growth in the long-term and that valuation worry is less and India is a good market for those type of names. It is a big economy, it is a large population.

If you can find those business models for sustainable business models, which can continue to grow in the long-term then you can take into account the fact that short-term you may need to pay these optically high valuations.

Which stocks look good

We spent a lot of time looking at bottom-up opportunities in India. We are looking at the companies that have a good track record, they have delivered to shareholders, they are focused on returns. So that some of our names that we have are businesses that have been around for long time.

We have names such as HDFC Bank, Asian Paints and Maruti Suzuki, these names have got great long-term opportunities in India and they have shown solid and a great rack record.


Emerging markets: Is the worst over?

It has been a welcome rally that we have had in the emerging markets. We have seen a recovery, a lot of it has been currency driven and a lot of it has been on the back of better growth and better earnings prospects. Whether it continues is depended on those fundamentals improving and obviously there is some key risks that emerging markets need to deal with.

So we certainly think that within this environment, there will still be corporates and companies that can benefit and from the environment that we certainly feel that there are some key challenges that some economies in emerging markets need to deal with.



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First Published on Jun 14, 2016 09:19 am
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