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A Happy Diwali

Happy Diwali, everyone!

Also known as the Festival of Lights, Diwali is an Indian celebration of hope over despair and knowledge over evil.

In keeping with theme of light over darkness, we will, today, be shining the spotlight on Singapore shares with an exposure to India. In particular, we will be focussing on shares that have performed outstandingly well over the last five years.

Both DBS Group (SGX: D05) and United Overseas Bank (SGX: U11) have been standout performers over the last half decade. The former, which has its Indian headquarters in the commercial capital of Mumbai, has delivered a total return of 10.7% since 2009. Meanwhile, UOB, which opened its first branch in India in 2009, has delivered a total return of 8.4%.

Airport services SATS (SGX: S58) operates in India through a partnership with Air India. The company, which is known as Air India SATS, was formed after the Indian Cabinet formerly approved a 50:50 joint venture between the two companies. SATS has been another outstanding stock market performer over the last five years. It has delivered an annual total return of 10%.

Singapore’s home-grown industrial conglomerate, Sembcorp Industries (SGX: U96), also has a presence in India. It recently strengthened its presence in the Indian power market by buying a 45% stake in NCC Power Projects. Over the last five years, shares in Sembcorp Industries have risen by 45%, which equates to an annual return of 7.7%. But when dividends are included, the annual total return is a market-beating 11.4%.

Whilst all of the above companies have done well over the last half decade, they pale in comparison to Sarine Technologies (SGX: U77). The manufacturer of diamond-cutting equipment has seen its shares rise 64% from S$0.24 to S$2.90 over five years. Dividends have boosted the total return to 71% a year.

India is an exciting country. It could get even more exciting with a new leader at the helm. It has a young and educated workforce; it has an abundance of natural resources and it has a nation of consumers that has the potential to drive the economy forward. In short, companies that already have a foothold in the country could continue to do well.

Happy Diwali from all of us at The Motley Fool Singapore!

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.