India Strategy Report Back
India Strategy: Contrarian Investing - Quarterly Update
11-Apr-2018

  • Our analysis suggested that, over a longer term, neutral to moderately popular stocks deliver significant out performance, even bettering the performance of the most popular stocks. In this quarter, neutral to moderately popular stocks as well as the most popular stocks failed to beat the benchmark.  The least popular stocks delivered the worst return, followed by the popular quintiles.  The neutral to moderately popular stocks delivered the second best return.
  • Our findings proved that, over the long term, out-of -favor low P/E stocks deliver disproportionate returns, significantly beating the benchmark. In contrast, the performance of high P/E stocks is dismal. In this quarter, both Q1 (high P/E) andQ5 (low P/E) stocks failed to beat the BSE100 benchmark, whereas Quintile-4(second lowest P/E stocks) performed the best