ETMarkets Fund Manager Talk: Why this $4-billion asset manager is a perma-bull on Indian equities

economictimes.indiatimes.com:

India in itself is an asset class in the global arena, and equities are well poised to deliver superior returns compared to all other asset classes, saysJiten Doshi, co-founder and chief investment officer of Enam Asset Management. “We feel we are amidst a once-in-a-lifetime phase of India registering its presence of being a break-out nation,” says Doshi, who oversees close to $4 billion of assets.
Doshi believes it’s time to allocate a sizeable part of incremental income in equities to create generational wealth, as this growth phase will ride multiple megatrends like digitization, financialization, premiumization, manufacturing renaissance, and benefit multiple sectors. Edited excerpts from an interview with ETMarkets:

Many money managers believe that valuations are stretched across market cap. Do you also believe so or contradict?
We feel there are two plays in the markets — value and price. When we contend valuations are expensive — it means that prices are high. Our core premise in investing is to own a good business, which presents long growth visibility, and generates better business returns. As things stand, prices are high, but has the value changed? Not necessarily.

Unlock Leadership Excellence with a Range of CXO Courses

One needs to look at the valuation bands through the prism of business profile, growth outlook, visibility of cash flows and cost of capital. One should also look at the Earnings Yield/Bond Yield gap — which suggests that we can seek lower teens growth at the minimum, at this stage. As a process of