Results analysis from Kepler Trust Intelligence

Ashoka India Equity (AIE)

06/03/2026

Results analysis from Kepler Trust Intelligence

Ashoka India Equity (AIE) has released its half year results for the period ending 31/12/2025 during which, AIE saw a NAV TR of -3.6%, versus the benchmark of -2.3% (in sterling terms). Despite this, returns since launch remain strong, with a NAV TR of 170.7% to year end, considerably ahead of the benchmark's 88.1%, aided by the small and mid-cap allocation.

In the period, key contributors came from a leading online travel agency, which begun to take market share in both online bus tickets and air fares, an auto-parts firm which saw higher-than-expected growth through both organic and inorganic improvements, and a public bank which maintained market share and saw improved loan growth. Detractors include a leading fashion retailer due to slowing consumption, a financial services company impacted by regulatory action, and a digital services company over AI concerns.

Despite moderating in the near-term, the managers believe the India growth story remains firmly intact and low levels of research support the long-term alpha opportunity, especially in small and mid-cap names. Sector allocations are broadly similar, with moderate increases to consumer discretionary and communication services sectors, whilst financials and energy are underweight.

The trust issued 1.1m shares from the beginning of the financial year to the publication of the report, equivalent to around 0.7% of the opening share capital.

Despite the more challenging environment, Chairman Andrew Watkins noted the "Structural opportunities presented by India's economic growth, expanding domestic consumption and adoption of the latest technology remain firmly intact," and that the managers are, "well positioned to navigate evolving market conditions," and, "deliver long-term outperformance."

Kepler View

At this point, the Indian growth story is well known. A growing working age population, coupled with government reform have led to a rapidly developing economy that has driven exceptional returns. However, this has waned slightly in the near-term, due to a number of headwinds. Despite this, the long-term potential remains very much intact, in our view. Supportive demographics will likely outlast any near-term volatility, whilst the government continues to pursue its growth agenda through several channels, and maintain financial discipline.

As a result, Indian GDP growth is forecast at 7.3% for 2026, likely making it the fastest growing major economy in the world. If so, India should become the world's third largest economy, by the end of the decade. Smaller companies should benefit best from this growth, making AIE well-placed, in our view. The management team have generated excellent alpha since inception, with nothing in the results to indicate the trust cannot deliver on its promise once these headwinds abate.

AIE has continued to trade close to NAV, enabling share issuance which, coupled with strong performance, has meant AIE has grown its asset base impressively. The trust also has the lowest ongoing charges amongst peers, aided by a shareholder-aligned structure which further incentivises the managers to generate alpha.

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