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India will continue to trade at a premium to EMs: Franklin's Radhakrishnan

'Equity valuations remain stretched as the gradual improvement in earnings growth is yet to justify these valuation levels', said Anand Radhakrishnan

Anand Radhakrishnan
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Anand Radhakrishnan

Samie Modak
Global brokerages have raised concerns about India’s record valuation premium to other emerging markets (EMs). Anand Radhakrishnan, managing director & chief investment officer-Emerging Markets Equity-India, Franklin Templeton, explains the reasons for India always trading at a premium. In an interview with Samie Modak, Radhakrishnan says as corporate profits improve over the coming quarters, price-to-earnings (P/E) multiples will look normal. Edited excerpts:

Concerns are being raised about India’s valuation premium to EM peers. Is it sustainable?

India has historically traded at a premium to EM peers, based on collective factors like demographic dividend, good corporate governance, and reasonable sector diversification. Additionally, recent efforts

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First Published: Oct 31 2021 | 11:34 PM IST

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