News

Here is why this CIO prefers Pakistan over India for investments

You may not want to invest in Pakistan especially due to the political uncertainty that looms over the country driving the country into nothing less than chaos and being under a huge debt to external financers doesn’t help either. Since we like to compare everything we do with India, the question is how better is India really in terms of an investment candidate as compared to Pakistan?

In short, it may not be at all. As Mattias Martinsson, Chief Investment Officer (CIO) of Tundra Fonder, a Swedish asset manager specializing in frontier markets and new emerging markets, explains, for them, Pakistan is a way better candidate for capital investment as compared to India, and here is why;

As the above graph clearly shows, the market has been performing very well in Pakistan as compared to India. A better performing market generally means more return on investment so if you want to invest some money in a company, that is where you would go. Not only that, the Pakistani market was doing extremely well in terms of growth before the change of government, devaluation of the rupee, and repayment of loans. It can be seen that even now it is steadily growing after post-COVID-19.

The Earnings Per Share (EPS) growth for Pakistani companies in the KSE-100 index has also been way higher for the past ten years as compared to Indian companies in the SENSEX index. Why wouldn’t you want to invest in a company that has a good Compound Annual Growth Rate (CAGR) providing you more EPS?

Finally, the Price to Earnings (P/E) ratio of Pakistani companies has stayed almost double of Indian companies in the last ten years. P/E is a measure that shows how many earnings a company generated as compared to the price of its shares. If a company isn’t generating a lot of revenue but has a high share price, it would mean it is overvalued.

That is a short analysis by a swiss professional but it shows that if you invest correctly, the Pakistani market will reward you.

Sponsored
TechJuice

Pakistan's premier website covering everything about Technology, Startups and Entrepreneurship! Email: editors@techjuice.pk

Share
Published by
TechJuice

Recent Posts

Teachers Can Now Access OpenAI’s Free AI Course

OpenAI, in collaboration with nonprofit organization Common Sense Media, announced on Wednesday the launch of…

41 mins ago

WhatsApp-Inspired Updates Under Testing in Google Messages

Google is exploring a revamped image-sharing interface in its Messages app, taking cues from WhatsApp…

1 hour ago

Create AI Video Backgrounds with YouTube Shorts’ Dream Screen

When it comes to online video streaming, YouTube is among the most well-known options. Every…

1 hour ago

Telecom Operators to Automatically Restore SIMs for Tax Filers

The Federal Board of Revenue (FBR) has introduced a comprehensive mechanism for blocking and unblocking…

3 hours ago

Trump’s Influence Fuels Bitcoin to Cross $100,000

Bitcoin broke the $100,000 mark for the first time on Thursday, driven by Trump's crypto-friendly…

3 hours ago

PSX Hits New Heights, Surges by 1,800 Points to Cross 97,000

On Thursday, the Pakistan Stock Exchange (PSX) 100 Index surged by 1,781.94 points, or 1.86%,…

4 hours ago