A key reason is that the price earnings multiple has been fuelled by a late pick-up in earnings growth.
Market is trading at 16.9 times FY18 projected earnings, a 20% premium to long-term average.
The order inflow for the company is expected to be robust, as it took several initiatives to compensate for the moderation of orders from PowerGrid, one of its biggest customer.
JLR will have mid-cycle refresh of Range Rover and Range Rover Sport in the current year. This will further support the volume growth.
Contrary to general perception, buying EM stocks during the sell-off due to rise in interest rates by the US central bank has turned into a winning strategy of late.
The bank Nifty index’s earnings are expected to be Rs 959 and Rs 1,229 for 2017 and 2018, respectively, which implies growth of 17.9% and 28.2%.
India's outperformance is likely to continue in the near-term. The secular reform story will help Indian equities to maintain the safe haven tag among the EMs.
The Pakistan Stock Exchange benchmark index was the best performer in Asia last year. WB has forecast the economy to grow 5.2% this year and 5.5% next year.
The share of SWFs in the total FPI holding in India shrank to 6% in January compared with 10.4% in July 2016, shows data from NSDL.
The US accounts for nearly 16% of the total sales of the company. The impact of the duty is limited since tyres of more than 39 inches are not included in the US regulator's order.
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