Caution | Trump Tariff India Impact |ट्रंप के एलानों से भारतीय बाजार में कितना बढ़ा खतरा?|Ajay Sharma

Summary

In this video, the speaker compares the investment potential of foreign companies to Indian ones, highlighting key differences such as profitability, return on capital, and dividend yields. With a focus on emerging markets like the Philippines, Hong Kong, and Vietnam, the speaker emphasizes the opportunity for Indian investors to explore international markets, just as Americans have successfully invested in India. The conversation also touches on the potential for significant returns in companies with strong growth prospects and low P/E ratios, encouraging diversification and global investment strategies.

Takeaways

• 😀 Foreign companies are outperforming Indian companies in terms of profits, with one foreign company having a return on capital of 32% compared to India's 10%.
• 😀 The dividend yield of the foreign company is 5%, while India's PE ratio is much higher at 62, signaling a better valuation opportunity in foreign markets.
• 😀 The foreign company has had a 36% compounded annual growth rate (CAGR) over the last 5 years, with the stock growing almost four times during this period.
• 😀 Even if the foreign company remains at a 10 PE ratio for the next 10 years, an 18% return is still expected, plus dividends.
• 😀 If the foreign company’s valuation re-rates from good to great, investors could see compounded returns of 25-30% over the next decade.
• 😀 There are investment opportunities outside of India, such as in the Philippines, Hong Kong, and Vietnam, which are also showing strong growth.
• 😀 Indian investors have successfully gained returns from US markets, and similar opportunities are available in other international markets.
• 😀 The speaker has 25 years of experience in observing markets and sees significant potential for Indian investors in emerging markets abroad.
• 😀 The Indian approach to international investment mirrors the success that American investors had in India.
• 😀 The speaker encourages diversifying investment into international stocks, highlighting that there are many undervalued opportunities in markets outside of India.

Q & A

What is the key difference between the foreign company and the Indian company in terms of profitability?

The foreign company is making three to four times more profit compared to the Indian company, with a return on capital of 32% versus the Indian company's less than 10%.

How does the foreign company's PE multiple compare to India's?

The foreign company's price-to-earnings (PE) multiple is 10, significantly lower than India's PE multiple of 62.

What is the dividend yield of the foreign company, and how does it compare to India's?

The foreign company's dividend yield is 5%, while the Indian company’s dividend yield is not mentioned but implied to be lower.

What has been the foreign company's compounding growth rate over the last 5 years?

The foreign company has experienced a compounding growth rate of 36% annually over the last 5 years.

How much has the foreign company’s stock increased in value over the last 5 years?

The foreign company's stock has increased by 9.7 times over the past 5 years, reflecting its strong growth.

What is the minimum return expected if the foreign company’s PE ratio does not change?

If the foreign company’s PE ratio remains unchanged at 10, a minimum return of 18% is expected.

What is the potential upside for the foreign company if its valuation improves?

If the foreign company’s valuation improves, the return could increase to 25%, 26%, or even 30% annually.

Which countries are mentioned as having potential investment opportunities outside of India?

The countries mentioned as having investment opportunities outside of India include the Philippines, Vietnam, and Hong Kong.

What is the speaker's perspective on investing in foreign markets in addition to India?

The speaker believes that there are significant investment opportunities in foreign markets, where Indian investors can potentially make substantial profits, just as Americans have done by investing in India.

How does the speaker view India's investment market compared to global markets?

While the speaker acknowledges India's growth, they emphasize the importance of diversifying investments globally, highlighting the potential of markets outside India, like those in Southeast Asia.