Investing in India: A Value Investors Guide to the Biggest Untapped Opportunity in the World + Website

Praise for Investing in India Saraogi has attempted the impossible. To capture the soul of the most ancient country on earth and its complex cultural heritage and yet make it contextual for the modern reader with recent incidents requires both scholarship and shrewd insights. Even those who think they know India well will find the book surprising. Vallabh Bhanshali, Co–founder and Chairman, Enam Securities Highly recommended. Eerily close to my views and understanding of India. Covers a lot of ground in a short space. Prashant Jain, Chief Investment Officer, HDFC Asset Management Rahul did a masterful job decoding the complex DNA of investing in India in this terrific book. Vitaliy N. Katsenelson, CFA, Chief Investment Officer, Investment Management Associates, Inc. Investigate before you invest! It is a maxim all value investors abide by. Finally, a book that helps you to do both. A must read for all India hands. Ramesh S. Damani, Member BSE, Mumbai, India Rahul Saraogi, one of the bright shining stars of Indian value investing, has written a must–read compendium to investing in India. Leaving behind the hype of many books on emerging markets, Saraogi provides an insiders view into the opportunities and challenges facing investors in one of the worlds largest economies. Highly recommended! John Mihaljevic, CFA, Managing Editor, The Manual of Ideas

Preface Chapter 1: Understanding India Agrarian Roots India’s Villages The Role of the Family Seven Generations Colonialism and its Impact on Indian Villages Deep Rooted Beliefs and Aspirations Spirituality and Superstition Villages Are Not the Same Anymore Urbanization is Changing India Summary Chapter 2: Government, Politics, and the Media Is India One Country? Democracy The Rise of Regional Parties Competition Among States is Healthy The Goods and Services Tax Is Democracy Holding India Back? State of Political Affairs in India Bureaucracy Corruption and Rent Seeking War, Terrorism, and Violence Role of the Fourth Estate and Accountability The Ultimate Free Market Summary Chapter 3: The Economy Overview of the Indian Economy India′s Unique Economic Model and its Legacy India′s Public Sector Undertakings (PSUs) Monsoons and What They Mean for India The Problem of Indian Agriculture Manufacturing in India India′s Infrastructure Deficit India′s Services Economy India’s Natural Resource Wealth Savings, Land, and Gold The Macro Economy Summary Chapter 4: Financial Architecture History The Banking System in India Non–Banking Finance Companies (NBFC) Financial Inclusion The Reserve Bank of India Equity Markets Market Participants Bankruptcy and Foreclosure Risk and Capital Summary Chapter 5: Value Investing in India Liquidity, Volatility, and Risk Value Traps Corporate Governance Capital Allocation Business Fundamentals Financial Strength Relative Opportunity Summary Chapter 6: Looking back Real Estate Private Equity Equity Markets Foreign Direct Investment Debt Markets Entrepreneurs and Businesspeople Summary Afterword About the Companion Website About the Author Index

RAHUL SARAOGI leads Atyant Capital Advisors, advisor to the Atyant Capital family of funds. In the last 14 years he has focused on the Indian markets. His mission is to consistently identify the best 10–15 investment ideas from among the thousands of publicly–traded Indian corporations. Rahuls value–based investment philosophy stands apart due to his belief in the paramount importance of corporate governance, specifically how management operates with its minority shareholders in mind. While getting his undergraduate education at the University of Pennsylvanias Wharton School, he discovered Warren Buffett, Charlie Munger, Benjamin Graham, Phil Fisher, and Robert Cialdini.