Rashmi Kwatra, founder and CIO of Sixteenth Street Capital, believes India has multi-decadal growth potential and is a great economy.
“For a long-term investor, it is a very appealing market and we are definitely invested in the market at Sixteenth Street Capital,” she said.
Kwatra is focused on great companies doing the right things led by the right teams to take advantage of the structural themes that have been seen.
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“We take a very long-term view to invest. We reiterate that even in the market like India and in the global world where we are seeing markets hit highs, there are structural thematic trends that are allowing great companies run by strong management teams to grow their earnings and their cashflows and compound at a very high base,” she said.
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She believes in a concentrated approach to investing. “In India, we have anywhere from 8-10 stocks. In India specifically, as well as in the rest of Southeast Asia, we are seeing some thematic and structural trends. These are economies that there is still an increase in the working-age population and therefore the workforce. That will drive consumption over many multi-decadal kind of horizon. So consumption is a trend we are invested in,” she explained.
According to her, penetration rates in the financial services in these markets are very low. “Penetration in financial services is low, getting much better and the right companies that are using kind of technology to address the addressable target, addressable market that historically has been unbanked or are unserviced in these products will benefit multi-fold in the next few years,” she shared.
Kwatra said technology in general is a theme that she is focused on.
“We think the horizon is long, the quality of companies that are available today for investors and the kind of plethora of companies that will be available for the investors as these great companies' IPO will be very interesting for the Indian ecosystem as a whole,” she said.
For the full interview, watch the accompanying video.