India: Implementation of Such Measure
The Lowdown on Fairfax India: Investing in the Future of India's Second-Tier Markets
By 2023, India is projected to outpace China and become the world's most populous nation with approximately 1.43 billion people. Despite the economic downturn, the South Asian democracy remains a beacon of growth among G-20 countries, making it an appealing investment destination for investors seeking global diversification.
India's stock market giants, listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), have long been a part of portfolios globally. Yet, second-tier stocks with favorable valuations have been tough for EU investors to access. Enter Fairfax India, a Canadian investment holding company founded in 2014, perfect for exploring this untapped market.
Fairfax India specializes in public and private equity investments and debt instruments in India and businesses heavily reliant on the Indian market. This forward-thinking investment strategy has seen them secure stakes in sectors such as banking, infrastructure, logistics, chemicals, and agriculture. The company's flagship investment is the international airport of Bengaluru, the southern Indian tech hub, accounting for over 40% of their portfolio.
The rough 2022 market year left its mark on Fairfax India, yet the earnings are expected to rebound by the end of the year. With earnings per share of USD 3.22 in 2021, the current share price of less than ten euros results in an extremely low single-digit P/E ratio. The management's tactic of buying back large amounts of the company's own shares only strengthens Fairfax India's appeal as a value stock.
The unique conglomerate discount, so typical of investment holdings, gives Fairfax India an edge. Traded in Germany, this security may not have the highest volumes, so it's crucial to limit orders. Keep an eye on Fairfax India as the company continues to navigate the Indian growth trajectory and offers potential for substantial long-term returns.
On Fairfax India:
Fairfax India Holdings Corporation focuses on achieving long-term capital appreciation with a unique investment strategy and strong performance.
- Geographic Focus: Fairfax India invests in public and private equity securities and debt instruments in India or Indian businesses with significant operations dependent on India.
- Investment Type: The company focuses on investing in both public and private equity, along with debt instruments.
- Objective: Fairfax India aims to achieve long-term capital appreciation while preserving capital.
Recent developments: During its annual meeting held on April 9, 2025, Fairfax India successfully elected its directors with strong shareholder support, suggesting that the company enjoys confidence from its investors, a positive performance indicator.
Moving forward: As Indian businesses continue to grow and diversify, Fairfax India's strategic investments in the second-tier market hold the potential for steady performance and long-term growth.
- Fairfax India primarily invests in public and private equity securities and debt instruments within India or Indian businesses heavily reliant on the Indian market, signifying a geographic focus on India.
- The company's investment strategy is diverse, focusing on both public and private equity, as well as debt instruments, demonstrating its versatility in financing opportunities.
- Fairfax India aims to achieve long-term capital appreciation while preserving capital, using a unique approach to generate steady returns for its investors.
- Despite experiencing a challenging 2022, Fairfax India is expected to rebound, offering potential for substantial long-term returns, owing to its strategic investments in India's second-tier markets.
