Posted 10/11/2023, 2:36:28 AM
CLSA Upgrades India to Overweight, Sees Strong Growth Ahead
- CLSA raises India allocation, changes stance to 'overweight'
- Cites rebounding credit impulse, improving external dynamics, robust GDP growth
- Changed from earlier underweight position between Oct 2022 to late March 2023
- Anticipates positive credit impulse supportive of 20-35% Nifty 50 growth
- Favorable energy pricing may improve balance of payments funding gap
- India's late margin contraction cycle supports ROE recovery versus EM
- Market at fair value, 22% upside potential based on regression model
- GDP growth supports 15% EPS expansion given link to earnings