Eleven Indian Stocks to Watch

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Includes: HDB, IBN, MTE, PTI-OLD, RDY, SAY, TTM, VEDL, VSL, WIT, WNS
by: Stockerblog

Many investors consider India to be the most secure of the three Asian BRIC countries, safer than Russia or China [Brazil is the fourth BRIC country]. Since the New York Stock Exchange has very strict requirements for being listed, investors often look towards NYSE stocks especially when investing in the company of a foreign country.

Some interesting facts about India:

1. It has the third largest economy in the world measured by purchasing power parity.
2. It has the tenth largest economy in the world in U.S. dollar exchange-rate terms.
3. It is is the second fastest growing major economy in the world [9.4% GDP growth rate].
4. Services make up over 60% of their GDP.
5. The inflation rate is 5.3%.
6. It has the fourth-largest reserves in the world of coal.
7. It has the world's largest reserves of thorium, a slightly radioactive metal which has been considered an alternative nuclear fuel to uranium.
8. Its oil reserves provide 25% of the country's demand.
9. It ranks second worldwide in farm output.
10. It ranks fourteenth worldwide in factory output.
11. Its IT industry accounts for only about 1% of the total GDP.
12. In 2005, India liberalized its foreign direct investments policy to allow up to a 100% foreign investment stake in India-based ventures.

Here are some Indian stocks worth looking into, all of which trade on the New York Stock Exchange and most pay dividends.

  • HDFC Bank Ltd. (NYSE:HDB) , is a Mumbai-based bank which provides retail banking, wholesale banking, and treasury services. The stock has a P/E of 29.43, and a yield of 0.6%.
  • ICICI Bank Ltd. (NYSE:IBN), is an India-based bank holding company which provides commercial banking, investment banking, and insurance services. The stock has a P/E of 26.5, and a yield of 1.1%.
  • Mahanagar Telephone Nigam Ltd. (NYSE:MTE) provides telecommunications services in Delhi, and Mumbai. The stock has a P/E of 13.9, a yield of 4.3%, and a PEG of 1.96.
  • Patni Computer Systems Ltd. (NYSE:PTI-OLD), is in the business of information technology consulting, and software development. The stock has a P/E of 10.57, a yield of 0.6%, and a PEG of 0.69.
  • Dr. Reddy's Laboratories Ltd. (NYSE:RDY), is a pharmaceutical company which researches, develops and markets drugs for the treatment of cancer, cardiovascular disorders, bacterial infection, and metabolic disorders. The stock has a P/E of 10.26, and a P/S of 1.63. It does not pay dividends.
  • Satyam Computer Services Ltd. (SAY), is in the business of information technology services, and business process outsourcing services. It has a P/E of 27.14, a PEG of 0.93, and a yield of 0.6%.
  • Sterlite Industries India Ltd. (BATS:SLT), is a major producer of copper in India. It has a low P/E of 6.82. Its earnings for the latest quarter were up 30% year over year on a revenue increase of 33%.
  • Tata Motors Ltd. (NYSE:TTM), is a manufacturer of passenger, and commercial vehicles. The P/E is 11.8, and it generates a yield of 2.3%.
  • Videsh Sanchar Nigam Ltd. (NYSEARCA:VSL), provides voice, data, and value-added services to companies around the world. The stock has a very high P/E of 426, a PEG of 2.75, and a yield of 1%.
  • Wipro Ltd. (NYSE:WIT), is in the business of offering information technology services and products, and business process outsourcing services. The stock has a P/E of 26.44, a PEG of 1.07, and a yield of 0.9%.
  • WNS Holdings Ltd. (NYSE:WNS), provides many services including outsourcing services which include data, voice, and analytical services, reservation, customer service, Web support, revenue accounting, audit and recovery, and financial services processing. The stock has a P/E of 35.57, and a PEG of 0.93.
  • Disclosure: The author does not own any of the above.