India’s stock market has enjoyed a near 60% surge since the start of 2012. What’s even more surprising is that its public market has managed to outperform two global powerhouses: the United States and China. Often classified as the next evolving China, India is poised for much more growth in the coming decade. India is the 7th largest economy by GDP, standing at US$2.3 Trillion in 2015. Investors looking to get some India exposure may want to consider Canadian companies with operations in that country, such as the ones on today’s list.
Figure 1: S&P 500 (blue) vs. Shanghai Composite (red) vs. Bombay Stock Exchange Composite (yellow); performance since January 1, 2012
DataWind Inc. (TSX: DW) – $2.20
Computer Hardware
DataWind Inc. (DataWind) is a Canada-based provider of Internet connectivity for the emerging markets. The Company’s Internet Delivery Platform offers a low-cost Internet connectivity solution by bundling a tablet device with an Internet browsing second-generation (2G) service plan. DataWind offers eight models of its tablet device, the UbiSlate, and three models of its smartphone device, the PocketSurfer. All devices run on an Android operating system and are capable of accessing the Internet using 2G mobile-cellular technology and/or wireless-fidelity (Wi-Fi). Its devices are not locked to any mobile-cellular network operator and its Internet Delivery Platform works with any Internet connection.
- Market Cap: $48,886,448
- Revenues (2014): $31,543,000
- EV/Revenue: 1.29x
- Price Change (52 weeks): -47.6%
AGT Food and Ingredients Inc. (TSX: AGT) – $27.56
Food Processing
AGT Food and Ingredients Inc. (AGT), formerly Alliance Grain Traders Inc., is a processors and splitters of pulse crops and an international producer, processor and exporter of staple food products to over 100 countries. AGT operates in three segments: pulses and grains processing, trading and distribution, and food ingredients and packaged foods.
- Market Cap: $640,531,605
- Revenues (2014): $1,356,745,000
- EV/Revenue: 0.66x
- Price Change (52 weeks): 9.5%
Big Rock Brewery Inc. (TSX: BR) – $6.30
Brewers
Big Rock Brewery Inc. is a producer, marketer and distributor of craft beers and cider. The Company has sales and distribution facilities in Calgary and Edmonton, sales staff resident in Alberta, British Columbia, Saskatchewan and Manitoba and agency arrangements for product sales in Ontario and the Atlantic Provinces. Its products are sold in nine provinces and three territories in Canada and also exported to Korea. The Company’s beer includes Abandoned Abbey, Cherry Bomber, Grasshopper Wheat Ale, Honey Brown Lager, and IPA India Pale Ale, among others.
- Market Cap: $43,639,419
- Revenues (2014): $36,755,000
- EV/Revenue: 1.30x
- Price Change (52 weeks): -60.6%
Hammond Power Solutions Inc. (TSX: HPS.A) – $7.50
Heavy Electrical Equipment
Hammond Power Solutions Inc. (HPS) develops and manufactures dry-type custom electrical engineered magnetics, electrical dry-type, and cast resin transformers. HPS’ transformers are sourced for some applications and in the harshest environments. The Company’s products are available in four categories: Control and Automation, Low Voltage Distribution, Medium Voltage Distribution and Potted and Specialty.
- Market Cap: $67,370,351
- Revenues (2014): $247,756,000
- EV/Revenue: 0.36x
- Price Change (52 weeks): 0.0%
