India may be trading at a valuation premium to most emerging markets, with the Nifty 100 currently valued at around 21 times earnings compared with 14-17 times for several other EMs. But headline price-to-earnings multiples alone may not tell the complete story.
Kashyap Javeri, Head of Research and Fund Manager at Emkay Investment Managers Limited, argues that comparing markets purely on index-level valuations can be misleading, particularly when indices across emerging markets have vastly different compositions and concentration levels. Instead, investors should focus on company-specific growth and valuations, where opportunities continue to remain attractive on a PEG basis.
