GQG Partners (ASX:GQG): Exploring Valuation After Major Investments in Leading Indian Conglomerates

GQG Partners (ASX:GQG) made headlines after investing heavily in five Adani Group firms through a series of major block deals. The investment expanded its holdings across several leading Indian companies and highlights its strategic focus on infrastructure and energy.

See our latest analysis for GQG Partners.

After ramping up its exposure to the Adani Group and a cluster of major Indian companies, GQG Partners’ 1-day share price return jumped 9.1%, helping to break out of a year-to-date slump. While last year’s total shareholder return sits deep in the red at -30.8%, those with a three-year view have still seen a substantial 42% gain. Momentum is showing some spark again after a tough stretch.

If these big moves have you wondering what else is catching attention, now is a good time to broaden your investing horizons and discover fast growing stocks with high insider ownership

With shares bouncing back, a solid three-year gain, and the stock still trading below analyst price targets, the real question is whether GQG Partners is offering investors a bargain or if the market has already factored in its future prospects.

Most Popular Narrative: 16.2% Undervalued

GQG Partners’ last close of A$1.63 sits below the narrative fair value estimate of A$1.94. This sets the stage for an intriguing valuation that looks beyond market sentiment, especially as the company emerges from recent controversies and volatility.

The business has a contrarian investment philosophy, buying into companies that are out of favour but which demonstrate strong and durable earnings, solid governance, and relatively limited exposure to cyclical downturns. This approach has led to major investments in tobacco producer Philip Morris (13.4 per cent), Brazilian energy group Petrobras (5.8 per cent), and Canadian pipeline operator Enbridge (5.3 per cent).

Read the complete narrative.

Curious what really drives GQG’s fair value? The narrative is built on bold growth in its global funds, roaring profit margins, and a founder’s outsized influence. Find out what other unique assumptions are baked in before making your next move.

Result: Fair Value of $1.94 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing ethical controversies and GQG’s heavy reliance on its founder remain key risks. These factors could quickly alter the current bull case.

Find out about the key risks to this GQG Partners narrative.

Build Your Own GQG Partners Narrative

If you want to go beyond the conventional outlook or prefer hands-on analysis, crafting your own perspective is quick and straightforward. Do it your way

A great starting point for your GQG Partners research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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