Mattias Martinsson, Chief Investment Officer and Founding Partner at Tundra Fonder AB, has pointed out high valuations as a challenge for investors in India’s markets.
Sharing insights from his recent visit to India, he said, “About 10% of the companies we met with have strong, fundamental potential for long-term upside, 30% may offer standard returns, but the majority are likely to result in losses unless investors can pass them on at higher prices—a strategy we avoid.”
Martinsson attributed India’s success in attracting foreign investment to its policy stability. He noted that consistent, forward-looking policies have persisted regardless of political leadership, supported by the checks and balances of independent states, which limit the scope for abrupt policy shifts.
Discussing economic prospects, he emphasized the role of infrastructure investments, particularly post-elections, in driving growth. Martinsson predicted that India’s “Made in India” initiative would enable the country to produce almost everything, except semiconductors, within three years.
India’s digitalization efforts were another area of focus. Martinsson observed the rapid process of opening equity trading accounts and the widespread use of QR code payments, indicating significant productivity gains.
He compared India’s current economic narrative to pre-2008 emerging markets, citing its stability as a distinguishing factor. This stability, he said, allows investors to concentrate on sustained long-term growth, positioning India as a unique case in the emerging market landscape.
Martinsson also shared on social media that he often found visual similarities between India and Pakistan during his week-long visit, occasionally forgetting he was in a different country.
