VIL: Why should a value investor look at investing in India?

RS: India is a fascinating market. It has more than 6000 listed companies representing every sector of the economy. Formal research coverage is available for only a few hundred companies. The market is rife with mispricing and it is truly a value investor’s paradise. The scenario is not very different from the US in the 1950s and 1960s. I discover new ideas almost every week.

VIL: What makes the Indian market attractive?

RS: What I really like about the Indian markets is the high level of corporate governance in its listed companies. There is an entrenched culture of minority equity ownership. Managements have a lot of skin in the game and are truly focused on generating high returns on equity.