< The 2016 All-Asia Research Team
Sanjay Jain & team
Credit Suisse
First-Place Appearances: 1
Total Appearances: 11
Team Debut: 2003
A runner-up the past five years, Credit Suisse’s troupe under the direction of Sanjay Jain vaults to the top, recording its first No. 1 finish on this roster. The researchers, working from offices throughout the region, track 100 regional banking names, and they are lukewarm on the group overall. For the “near term, the banks sector could enjoy a modest recovery, based on the China growth stimulus,”says Jain, “but we expect it to fade.” They are not more optimistic over a longer horizon, he advises, forecasting that “the bank sector should underperform the broader Asian markets, similar to last year.” In 2015 regionwide banking shares fell 10 percent, lagging the wider market by 3.7 percentage points, and year to date through late April were trailing by 5.3 percentage points, posting a 4.8 percent decline. Going forward, Credit Suisse is recommending that investors stick with a combination of quality and growth stocks. Its top pick in this space is HDFC Bank, a leading Indian financial services provider. With a market capitalization of 2.8 trillion rupees ($42.2 billion) and assets of nearly Rs7.1 trillion, the firm is reliably among the nation’s top-two lenders. “HDFC can deliver high-teen earnings growth alongside high-teen return on equity with a rare consistency for many years to come,” the analyst believes. “It has the best business models, with proven quality of management, and the strongest track record in execution, reflected in its deposit franchise, fee income, credit quality and technology.” The bank’s stock climbed 8.6 percent during the 12 months through late April, to Rs1,092.15, while its peers’ shares slumped 23.2 percent. His squad projects a rise to Rs1,360. Jain, 50, “gives good insights into the financial sector through the cycles, and his views and analysis are very useful,” observes one fund manager. Credit Suisse’s head of Asia-Pacific financials equity research has held several posts since joining the firm in August 2000. He tracked Thai banks from Bangkok, moved to Singapore to cover local firms then worked in Hong Kong reporting on Chinese names before returning to Singapore in 2014 and assuming his current post. Previously, Jain monitored banks in India and Thailand for HSBC Securities and spent time in investment banking and project finance in India. He holds a bachelor’s degree in mechanical engineering from India’s National Institute of Technology, Raipur, and an MBA from the Indian Institute of Management, Ahmedabad.