Mark Mobius, a luminary in the field of Emerging Markets investing, has cast his eye favourably upon three Indian stocks: Tips Industries, Netweb Technologies, and Waaree Renewables.

What Happened: Sharing his insights in an exclusive chat with CNBC, Mobius mentions that traditional metrics like price-to-earnings ratios don’t sway him; instead, he zeroes in on Return on Capital and growth potential to identify value, labelling these stocks as “relatively cheap.”

Tips Industries, thriving in the vibrant music sector, especially caught Mobius’s attention. He highlighted the company’s role in the music production integral to Bollywood’s song and dance extravaganzas, contributing to its impressive 231% stock price surge over the past year.

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Meanwhile, Waaree Renewables stands out in the booming solar industry, which Mobius predicts will see rapid growth in India. The company’s stock has skyrocketed by nearly 400% in the same period, underscoring the investor’s optimism about the sector’s future.

Netweb Technologies, a recent market entrant focusing on computer hardware manufacturing, also makes Mobius’s list. He views India’s increasing involvement in computer hardware as a sign of burgeoning potential, a perspective validated by the company’s stock jumping 80% in the last twelve months.

As a mantra for investors, Mobius advocates for the exploration of smaller, off-index companies by those seeking long-term growth, without dismissing the worth of India’s larger, established firms.

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