Happy Diwali, everyone!
It is that time of the year when the focus is on everything India. So in keeping with tradition, we will, in this article, spotlight three shares with significant exposure to one of Asia’s fastest-growing countries.
Perhaps one of the easiest ways to invest in India could be through the iShares MSCI India Index ETF (SGX: I98). The fund was established to provide investment results that, before fees and expenses, closely correspond to the performance of the MSCI India Index.
The top 10 holdings of the fund include consumer giant, Hindustan Unilever, IT titan, Infosys, and drugs maker, Dr Reddys Laboratories. Since its inception in 2006, the ETF has delivered an Annual Total Return of 6.68%, which lags the benchmark return of 8.1%. The difference could stem from the 1.06% Total Expense Ratio.
Sticking with collective investments, Ascendas India Trust (SGX: CY6U) is the first Indian property trust in Asia. Its main objective is to own income-producing real estate that are primarily used as business space in India.
Currently, a-iTrust’s portfolio includes the International Tech Park Bangalore, International Tech Park Chennai and CyberVale in Chennai. Rental revenues at a-iTrust have increased steadily, as have bottom-line profits. However, dividends have fallen from S$0.07 per share in 2011 to S$0.05 in 2015.
Finally Meghmani Organics (SGX: M30) is listed on both the Bombay and Singapore exchanges. The company makes and sells pigments, pesticides and basic chemical products.
Meghmani generates a reasonable, though not spectacular, Return on Equity. Its Net Income Margin at 3.4%, is modest at best. However, it manages to make good use of its assets. Its Asset Turnover of 0.8 are some the highest in the market. Its Leverage Ratio of 2.4 implies it makes use of quite a bit of debt.
India and Indian companies should be on most of our radars. The economy is growing at a fast pace, which could benefit many companies in the country. Not all will capitalise on the rapid expansion, though. But those that do could be worth watching.
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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.