Three strong Asian stocks trading at bargain prices
Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns on capital, and are on attractive valuations.

I have a simple investment philosophy: buy good businesses run by competent and honest people, and buy them at a price that leaves enough of a margin of safety for mistakes or bad luck. I try to buy companies that other people are not looking at. That is where I find bargains and an adequate margin of safety, but it also tends to lead me away from big stocks.
As a result, Fidelity Asian Values has most of its capital deployed in small companies (those with a market capitalisation of up to £5bn); stocks above that threshold only make up about 15% of the trust’s holdings as at the end of July 2021. The trust also has a value bias given my focus on companies that are mispriced, either because they are yet to be discovered by investors or are currently undervalued owing to near-term concerns.
Growth focus has left value cheap
I feel the current focus on themes and growth stocks is a great opportunity. The pivot towards growth stocks between 2016 and 2020 has led to the widest dispersion between growth and value stocks in almost 100 years (similar to the situation in 1999). This bifurcated market in terms of valuations has allowed me to build positions in businesses with long-duration cashflows and good management at attractive prices.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Given the broad investment universe of the trust includes the whole of Asia (excluding Japan), I can pick from a diverse range of companies across various sectors and geographies from India to the Philippines and I am excited by our holdings in the trust today. We own a portfolio of businesses which are dominant in their industries, earn good returns on capital and are available at attractive valuations.
An attractive yield from hydropower
NHPC (Mumbai: NHPC) is a 100% hydro-electric power generation company in India, operating run-of-the-river power stations. Its current capacity of seven gigawatts will expand to 12 gigawatts with the addition of new hydroelectric power projects over the next two-to-three years. The stock offers a good bargain as it trades at about seven times its 12-month forward earnings and provides a 6%-7% dividend yield. The price/earnings (p/e) ratio is set to drop further to five times as the new power plants start to generate earnings.
A market-leading online broker
Kiwoom Securities (Seoul: 039490) is South Korea’s largest online brokerage firm with a 30% share of the domestic market. The company has built an enduring moat based on best-in-class customer service, technology interfaces and value-added services. The stock trades at about four times its 12-month forward earnings and should be able to grow well in next five years as it adds distribution of savings products and foreign exchange services to its product offering.
IT in Indonesia
Metrodata Electronics (Jakarta: MTDL) is Indonesia’s largest information technology (IT) products distributor and is among the leading players in IT consulting, implementation and system integration. The stock has performed reasonably well since we initiated our position last year during the coronavirus-driven panic. However, Metrodata is still trading on an attractive valuation at 11-12 times forward earnings with net cash on its balance sheet and 20% return on equity. It should be able to grow at 5%-10% annually for the next five years.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Nitin Bijaj manages Asian Smaller Companies Fund (SICAV) and Asian Values PLC at Fidelity. Nitin started at Fidelity in 2003 as a research analyst in London. In 2007, he became an Assistant Portfolio Manager in 2007 for the Fidelity Global Special Situations Fund in the UK, then in 2009 Nitin moved to Mumbai to manage Fidelity’s domestic Indian equity funds. In 2012, he moved to Singapore to manage the Fidelity Asian Smaller Companies Fund (SICAV) which he does to this date.
-
8 of the best properties for sale with communal gardens
The best properties for sale with access to communal gardens – from an apartment in a listed building opposite London’s Hyde Park, to a wing of a mansion with access to 180 acres of parkland in Henley-upon-Thames
-
The five insurance policies you should have
Some insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency
-
'Seeking out quality and resilience will pay off for patient British investors'
Opinion Gary Channon, chief investment officer of Phoenix Asset Management Partners, and Kartik Kumar, member of the Investment Team, select three stocks
-
Airtel Africa is dialling the right numbers – should you buy?
Opinion Mobile phone services group Airtel Africa is inexpensive and growing fast
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
Resilient and profitable performers will excel in the era of deglobalisation
Opinion James Harries, co-manager, STS Global Income & Growth Trust, selects his favourite stocks as he shares where he'd put his money
-
The costly myth of “sell in May”
Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King
-
Vietnam: a high-growth market going cheap
Opinion The threat of tariffs has shaken Vietnamese stocks, but long-term prospects remain solid, says Max King
-
Who’s driving Tesla?
As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.