US What is your vote and pharma on it in the light of what is happening? We don’t know if there is a deal or not?
Alok Agarwal: It is under such a cloud of growing growth. With the advent of AI, there is always a question whether it will affect growth or margins, plus the US. In the same issues that are the main market sector for IT companies. IT companies have put growth numbers under the cloud. Even in the last 5-10 years, the combined growth of the IT sector was not so great, while going forward, there seem to be more headwinds than tailwinds.
It is for the whole area, but some selected players will emerge with better results due to their personal power. Overall, this area lacks growth that can lead to it and that is why the attitude is not very positive.
When it comes to pharma, there are many types; US It is a common pharma from Indian companies. We also have CDMO players in India who play a very crucial role. We also have domestic pharma and hospital businesses. Therefore, we are more positive and constructive on CDMO players and very positive on home hospitals. Those fields are growing better and they have better visibility, and that is why we pursue our positivity.
One thing with alchymy capital is to focus on identifying overheated areas using PEG ratio. Another discussion that market participants are in their minds is to focus on widespread markets whether they are with the benchmark. What is your opinion there?
Alok Agarwal: As a home, focusing on whether we are with or without a benchmark, we believe in a garp investment that is a reasonable price growth and growth is the first word of the acronym. Our country increases by 11 strange percentage in terms of nominal GDP and corporate earnings are increasing somewhere in the vicinity of 13% to 14%. We want to see companies that are growing faster than that growth rate. And it’s the number we usually want. Therefore, grow faster than the overall economy and overall corporate earnings.
Living events
The Nifty 50 companies have increased by only 3.5% in the last quarter, the next 450 companies have increased by more than 20%: Alok Agarwal
If you want to get growth plus good quality on both balance sheets and management side, you have to pay a little premium and it can be determined by the PEG ratio. We believe that the PEG ratio is less than the index, which is a little more reasonable for the type of premium we pay for. As we currently want, we were talking about some index heavyweights in terms of fields. They are those who are taking down the overall growth.
Therefore, most growth is found in some areas that are not present in the benchmark enough and that is why the answer may look like finding opportunities outside the benchmark. But our point of view is not to be seen with or without a benchmark, Outlook is to pay attention to companies that are growing faster on a more durable basis.
How do you currently advise customers to navigate the market? Are you advising them to sit on cash because there is some uncertainty and the earnings season began on Thursday? Do you advise you to wait and look until some signs emerge, or there are some areas that one can invest right now? If yes, what could be those top three fields?
Alok Agarwal: In India, it is a structural growth story. We can never really make the markets. How would we have decided from the end of September to February- a five-month correction that happened for the first time in 25 years? At the end of February, it was so difficult to imagine that in the next four months, markets could bounce like them. The fact is that India is a structural growth story and any sinking is an extra opportunity to really make a portfolio. Therefore, there is no point.
The legendary investor Charlie Munger said that big money was not to be purchased or sold, it is in wait. So, I would say that one should invest in most times and make sure they are investing. If they are going through the side of the funds, then invest in the right funds; If they are investing in stocks, they should be in companies that are growing at a reasonable pace. As long as it is there, you are reasonably in good quality stocks, the stocks themselves will ensure that things increase.
Investors going back to basics; Looking at the manufacturers, PSUS: Pashupati Advani
Talking about the areas that are growing very fast, we are more positive on the customer discretionary space and within it, on the capital market plays or on the side of the hospital, the real estate side, the electronic production and jewels on the Industrial Dysfunction, such as jewels, retail, financial services. We are even more positive on defense and power. These are the fields that are growing at a very fast pace that runs our positive outlook there.
Government spending trends to position your portfolio: Gurmeet Chad
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