by JM Darling
For investors with a time horizon beyond the next trade or the next few quarters, the second most populous country in the world-- India-- offers a variety of investment opportunities for exploration. Emerging market stocks can be both speculative and volatile, but may provide an important growth element to a balanced portfolio.
With the recovery in auto sales, Tata Motors Ltd.(TTM) is enjoying sales success worldwide. From its tiny Nano to the venerable Jaguar and Range Rover, Tata Motors has become a player in the world automotive business. Shares prices are currently trending above both 13 and 50 day moving averages, a little above $18.00. The company has experienced consistent revenue and earnings growth, reporting revenue of $7.86 billion for its fiscal 2012 second quarter-- up 27.8% from $6.15 billion in the same quarter previous fiscal year. Its 5 year average return on investment at 12.88 beats the industry’s anemic -.14. With a P/E under 10, investors can drive a good value here.
ICICI Bank Limited Common Stock (IBN) has seen its share price trending down with the rest of the financial sector, though currently it’s been trading around $30. Founded in 1955 and based in Mumbai, India, ICICI provides a wide array of financial and banking services. Forward P/E is 14.74 with an 5 year average dividend yield of 2.02. A new CEO is working to navigate the rough financial waters of India’s current inflationary woes and the continuing saga of Europe’s impact on world financial markets.
Trading around $2.25, almost 10% below its 50 day moving average, Lionbridge Technologies, Inc. (LIOX) is a small cap company at $135 Million. For third quarter 2011, the global technology provider reported revenue of $107.6 million, an increase of $8.4 million or 8% from the quarter ended September 30, 2010, compared to the third quarter of 2010. Recent sales by insiders should be noted.
WIT ranks #782 on Forbes Global 2000 list. For the quarter ended September 2011, Wipro reported an 18% increase in revenue over the previous year. Net income increased by 1%. WIT has been trading around $10 with a trailing P/E of about 24 and a current dividend yield of 1.70. Founded in 1945, the company has a current market capitalization of $25 billion.
INFY is another Indian technology giant, with a Forbes ranking near its competitor WIT. Recently reported revenues are up 16.7% year over year. The stock is trading around $53, 2% above its 13 day moving average. INFY has five year average dividend yield of 1.41 with a trailing P/E of 19.26.
Many factors make India an attractive country for business and investors. India's economy is poised to grow faster than China's by 2015. Improving demographics, structural reforms and globalization continue to take hold on the Asian subcontinent. With recent softness in the broader market, investors can take advantage of better prices for investing in this emerging market giant.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.