Google Chrome and Microsoft Edge are in the process of rolling out a version update which is impacting some nabtrade functionality, including buy/sell buttons and certain page loads. If you are a Chrome or Edge user and are experiencing these problems, please visit the following FAQ to review the steps that need to be taken to prevent this issue from occurring.

Aussie mid-caps that could benefit from India’s growth story

A number of Aussie mid-cap companies are taking advantage of political and economic reforms taking place in India, says Brenton Saunders.

INDIA’s growth story — propelled by reforms and digitalisation — was recently highlighted by Pendal’s emerging markets team.

But Aussie equities investors need look no further than the local bourse for stocks with exposure to the sub-continent, says Pendal portfolio manager Brenton Saunders.

Saunders, who leads Pendal MidCaps Fund, recently returned from a research trip in India.

“They are very entrepreneurial and successful at sourcing capital and building businesses.”

With a growing middle class, there are opportunities across the economy, from consumption to infrastructure and housing, Sauders says.

 

ASX-listed stocks with India exposure

Property-focused digital advertising business REA (ASX: REA) is an example of an ASX-listed mid-cap with a presence in India.

 

“REA is taking its home-grown skill set and applying it in a marketplace where private ownership of real estate is still at a formative level, and consumption is growing with demand for new and better housing.

“There’s a lot of technology associated with price discovery and sourcing of properties by commercial and private buyers.

“That’s where REA is strong. It has a powerful, well established, AI-based classifieds platform, which it can leverage into a very fast-growing real estate market that is gaining momentum.

“It’s a small but fast-growing business in India with a very impressive management team.”

While the REA business in India isn’t “needle-moving” yet, it does provide an opportunity for the mid-cap in coming years, Saunders says.

Another Aussie mid-cap operating in India is IDP Education (ASX: IEL), a former Seek-owned operation which listed on the ASX in 2015.

“IEL has established a powerful global students placement business and has a big share in the world’s largest English language proficiency testing business,” Saunders says.

“India makes up the biggest geography for those businesses globally.

It has about half a million students in terms of placements into foreign universities and education facilities. Mostly they are going into Commonwealth countries like Australia, Canada and the UK – all big beneficiaries.

“IEL is by far the largest incumbent and most respected provider in India,” he says.

Competition has increased for IEL with a growing number of well-funded competitors in the space in India.

“That competitive dynamic is still going to play out in terms of placements and English language testing.

“But the system is still growing. There will be a bigger part of the population wanting to become more English proficient and travel for education as GDP per capita continues to increase.

“Remember, there’s 70 million active consumers in the Indian market. You can expect that to double over the next seven or eight years.

“And that provides enormous opportunity for anyone that is well positioned in the Indian marketplace.”

 

Learn how the industry leaders are navigating today's market every morning at 6am. Access Livewire Markets Today.

 

 

All prices and analysis at 8 December 2023.  This document was originally published on Livewire Markets website on 8 December 2023. This information has been prepared by Pendal Group.

The content is distributed by WealthHub Securities Limited (WSL) (ABN 83 089 718 249)(AFSL No. 230704). WSL is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited (ABN 12 004 044 937)(AFSL No. 230686) (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer.  This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice.  Past performance is not a reliable indicator of future performance.  Any comments, suggestions or views presented do not reflect the views of WSL and/or NAB.  Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice including any third party sourced data (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. For more information, please click here.

 


About the Author
Livewire Markets

Livewire Markets is Australia’s leading source of investment insights and analysis. Over 700 of Australia's most experienced and qualified decision-makers share their views directly with you on all things investing. These are highly vetted investment professionals with years of real market experience, including Chief Investment Officers, Portfolio Managers, Analysts and Economists. And now, Market Index has joined forces with Livewire to become Australia’s largest source of dedicated investment information. You’ll never be left behind with more expert analysis and data to help you make the best investment decisions.

  1. Expert analysis and insights to make more informed investment decisions.
  2. Free analysis and insights from 700+ of Australia's top financial leaders
  3. Access to performance data on over 250 managed funds
  4. Curated investment insights delivered every morning
  5. Never miss an update or opportunity

Learn how the industry leaders are navigating today's market every morning at 6am. Access Livewire Markets Today.