India's Lofty Equity Valuations Are Pure Bollywood
Even to seasoned investment professionals, India's lofty equity valuations are a head-scratcher. How's a sell-side researcher to explain to a foreign institution that the country's cement makers are more than twice as expensive as their peers in every other major market?
Building materials are just one example, though that's what analyst Sanjeev Prasad and his team at Kotak Institutional Equities picked to raise some provocative questions in a recent investor note, titled What the cement sector tells us about our industry.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Is Now The Time To Put Data#3 (ASX:DTL) On Your Watchlist?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. In contrast to all that, many investors prefer to focus on companies like Data#3 (ASX:DTL), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. That means EPS growth is considered a real positive by most successful long-term investors. Data#3 managed to grow EPS by 16% per year, over three years. That growth rate is fairly good, assuming the company can keep it up. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. It was a year of stability for Data#3 as both revenue and EBIT margins remained have been flat over the past year. That's not a major concern but nor does it point to the long term growth we like to see. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. Check out our latest analysis for Data#3 The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Data#3's future EPS 100% free. It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Data#3 followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. As a matter of fact, their holding is valued at AU$31m. That's a lot of money, and no small incentive to work hard. Despite being just 2.7% of the company, the value of that investment is enough to show insiders have plenty riding on the venture. It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. Well, based on the CEO pay, you'd argue that they are indeed. The median total compensation for CEOs of companies similar in size to Data#3, with market caps between AU$620m and AU$2.5b, is around AU$1.7m. The Data#3 CEO received AU$1.1m in compensation for the year ending June 2024. That seems pretty reasonable, especially given it's below the median for similar sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity, in a broader sense. As previously touched on, Data#3 is a growing business, which is encouraging. Earnings growth might be the main attraction for Data#3, but the fun does not stop there. With a meaningful level of insider ownership, and reasonable CEO pay, a reasonable mind might conclude that this is one stock worth watching. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Data#3 that you should be aware of. Although Data#3 certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Australian companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
CoreWeave (CRWV) Jumps 8% on Rosy Growth Prospects
CoreWeave, Inc. (NASDAQ:CRWV) is one of the CoreWeave grew its share prices by 7.99 percent on Friday to hit a new all-time high, as investors continued to load up positions amid rosy growth prospects. At intraday trading, shares of CoreWeave, Inc. (NASDAQ:CRWV) jumped as high as 10 percent to hit $187, before paring gains to finish the day at $170, as investors appeared to have flocked to the booming Artificial Intelligence industry for safety to mitigate risks from the ongoing geopolitical tensions. In recent news, CoreWeave, Inc. (NASDAQ:CRWV) announced a record-breaking performance from using 2,496 of Nvidia Corp.'s latest Grace Blackwell Chips on its AI-optimized cloud platform, making its submission the largest-ever benchmarked under MLPerf. In March this year, CoreWeave, Inc. (NASDAQ:CRWV) bagged an $11.9-billion deal with OpenAI and welcomed it as a new investor through the sale of $350 million CRWV stocks to the latter. Last month, OpenAI upsized the deal with another $4 billion worth of contract. A close-up of a network administrator's hands working on a cloud computing server. Last month, it was tapped by Aston Martin Aramco as its official AI cloud computing partner, where it will provide AI-accelerated engineering opportunities to support car design efficiency. While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
an hour ago
- Yahoo
This Global REIT Is Riding Asia's AI Wave Straight to the Bank
Equinix's AI-ready Jakarta facility establishes critical infrastructure ahead of competitors in Indonesia's digital boom. Operating 270 data centers globally with 98% customer retention, Equinix demonstrates remarkable stability in the digital infrastructure space. Despite heavy modernization investments, Equinix maintains financial strength with nearly $3 billion in cash and $7.6 billion in available liquidity. 10 stocks we like better than Equinix › Equinix (NASDAQ: EQIX) is a powerhouse in digital infrastructure and part of a new class of innovative real estate investment trusts (REITs) laying the groundwork to become the future of real estate investing. It has a strong history of capitalizing on international technology trends that traditional REITs can't match. With a strategic expansion in Indonesia, Equinix is positioning itself for explosive growth, and Wall Street is beginning to take notice. Asia is becoming the global epicenter of digital demand, and Indonesia is leading the charge. It's attracting major investments in cloud computing, artificial intelligence (AI), and fintech. By entering the market early and scaling aggressively, Equinix is developing a strategic advantage that will be tough for competitors to match. Indonesia's data center market is projected to grow at a compound annual growth rate (CAGR) of 8% to $3.79 billion through 2030. Cloud giants like Amazon Web Services and Alphabet's Google Cloud have already announced major investments, but their platforms need physical infrastructure to function. That's what makes Equinix's expansion into Jakarta so strategic. Its newly opened data center is no ordinary server farm. Built to support intensive computing tasks like training and running AI systems, Equinix is creating the critical backbone necessary for digital business growth in Indonesia. This could make Equinix one of tech's most valuable players. The average analyst price target sees Equinix at $1,009, 10% percent higher than it currently sits, a nod to its forward-looking strategy and savvy market expansion. In addition to its Indonesian assets, Equinix operates 270 data centers across five continents and 35 countries. It has a great track record with its customers, retaining 98% of them. As of Q1 2025, Equinix reported over $2.1 billion in annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). This strong combination of global scale, customer loyalty, and reliable earnings is exactly what sets the stage for Equinix's move into Jakarta to be a success. While it's not the highest-dividend REIT, Equinix pays investors 2% annually. But considering its growth trajectory looks more like a tech company than a traditional REIT, that's not too bad. Equinix does face potential pressures though. Their total capital expenditures for 2025 are projected between $3.4 billion and $3.7 billion, with non-recurring expenditures accounting for around 95% of that. This significant investment is partly due to the need to modernize legacy data centers to meet new levels of demand. While these upgrades are essential, they represent a substantial financial commitment that could impact short-term profitability. That said, Equinix ended Q1 2025 with roughly $2.95 billion in cash and cash equivalents and an ample $7.6 billion in total available liquidity. The balance sheet looks sturdy enough to fund expansion without putting shareholders at undue risk. Geopolitical tensions are also on the periphery of investor concerns. As Equinix operates globally, it must navigate regulatory, monetary, and political risks in emerging markets. But these risks appear to be well managed by the company's leadership, and its long-term leases, high renewal rates, and diversified customer base provide stability. Some investors still think REITs are too risky and don't deliver enough value. Those perceptions are often based on underperforming traditional sectors like retail or office space. That's where tech-powered REITs like Equinix come in. Gone are the days when investing in real estate meant buying a piece of something on the ground. Now you're buying into the cloud. Even in comparison to peers like Digital Realty, Equinix still stands out. It has a stronger international footprint, a more premium client base, and better historical uptime. If you're looking for a REIT that combines growth potential with resilience in the digital age, Equinix is arguably a top-tier pick. AI is only as powerful as the infrastructure behind it, and Equinix is building the digital backbone on which the future will run. Jakarta may just be one dot on the map, but it signals Equinix is putting itself at the forefront of the global shift. With recurring revenue, global scale, and a pioneering foothold in high-growth markets like Indonesia, this REIT could quietly become one of the most important tech stocks of the next decade. Investors looking to profit from AI's global expansion without the volatility of pure-play tech stocks may want to give Equinix a closer look. It might not be a flashy choice, but it's in a solid state and could be the smartest upgrade your portfolio makes this year. Before you buy stock in Equinix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Equinix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Philippa Main has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Digital Realty Trust, and Equinix. The Motley Fool has a disclosure policy. This Global REIT Is Riding Asia's AI Wave Straight to the Bank was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
