Prashant Jain on equity returns, opportunities in market: 5 key takeaways

Indian equity markets have become reasonable due to a moderation in the last 18 months and valuation risks appear to have been addressed, according to the founder of 3P Investment Managers, Prashant Jain. Jain believes there is not much room for multiples to increase and the vulnerability of the market from foreign outflows is lower. The profits to GDP ratio is almost back to 4.5-5%, and a 12-14% profit growth is sustainable unless Indian growth rates increase. Jain suggested there are very few places in the market where margins or profits can grow faster than topline growth.