India Inc To Report Double-Digit Earnings Growth For Next Two Years: UBS Wealth's Hartmut Issel
According to Hartmut Issel, markets like US and India have outperformed many markets with good earnings growth which makes sense for higher multiples
UBS Wealth Management is expecting a double-digit growth in India Inc. earnings for next two years. The growth will come from low base as NSE Nifty 50 earning growth was single digit for financial year 2025, said Hartmut Issel, head, equity and credit APAC and chief investment officer at UBS Wealth Management.
When any markets come out of a low-earning period, multiples will move first followed by earnings upgrades. Multiples in India are not exactly 'very high' especially now the country is in the phase of early recovery of earnings, Issel said.
"In last ten years, valuations have not been low in India. Markets like US and India have outperformed many markets with good earnings growth which makes sense for higher multiples," he said.
Valuations is not expected to come down in a scenario when GDP is growing next year alongside earnings, and falling rates, Issel said.
"We have earnings growth, probably starting from this quarter. My assumption is that we are going back to double digits,"Hartmut Issel, Head of Equity and Credit APAC and Chief Investment Officer at UBS Wealth Management
Hartmut Issel, Head of Equity and Credit APAC and Chief Investment Officer at UBS Wealth Management was speaking to NDTV Profit.
"In next 12 months, US Federal Reserve may reduce rates by 100 basis points or deliver four rate cuts. In India, the Reserve Bank of India may reduce rates for two more two times," he said in an interview to NDTV Profit.
UBS Wealth Management is monitoring GDP of many countries of APAC region. "A softer data may be seen in the second half here and there," he said. The wealth manager has a Neutral view on Asia-ex Japan region. "Under Asia-ex Japan, UBS Wealth Management is expecting to see a little higher growth," he said.
US reaching deals with different partners in recent days before the deadline takes away the uncertainty, which was the biggest stumbling block. UBS Wealth Management is seeing a bit of uplift in APAC region, he said.
