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Adding AU Small Fin Bank over last few months; positive on Alkyl Amines, says Marcellus Investment’s Saurabh Mukherjea

Marcellus Investment is buying Bajaj Finance at all dips, said the company’s founder Saurabh Mukherjea on Monday. The investment firm has been adding AU Small Finance Bank over the last few months, he added.

Marcellus Investment is buying Bajaj Finance at all dips, said the company’s founder Saurabh Mukherjea on Monday. The investment firm has been adding AU Small Finance Bank over the last few months, he added.
“We have started adding AU Small Finance Bank. There is a lot of interest in midcap consumption plays beyond fast-moving consumer goods (FMCG),” said Saurabh Mukherjea, Founder, Marcellus Investment Managers in an interview with CNBC-TV18 on Monday.
We are buying Bajaj Finance at all dips, Mukherjea said.
“Our weightage for Bajaj Finance has been for a long time. Around 9 percent of our consistent compounded portfolio will be Bajaj Finance. If Bajaj Finance gets slammed as it did in January, February and March, we won't hesitate to take it back to normal weight. Late April or early May we tripled our position in Bajaj Finance.”
Speaking about CPVC pipes space, he said, “In the CPVC pipes space, Astral Poly has become the generic name for CPVC pipes especially in western India. We have that in some of our portfolios and we are looking for more such names.”
In the pharma space, Divi’s Labs has a bright future, Mukerjea said.
“Divi’s Labs has been in several of our portfolios, it is less than half the size of Nestle in terms of market cap today. We will stick to our guns there that Divi’s Labs has a bright future. Alkyl Amines is in our smallcap portfolio and will stay there. Our reckoning is Alkyl Amines’ order book will hold up very nicely as the API space continues to boom.”
According to him, Eicher Motors' core team's focus on growth will bode well.
“In auto and auto ancillary we think that Vinod Dasari and team are doing a wonderful job at Royal Enfield at Eicher Motors, growth runway there is also very long. Not just the domestic growth runway but they are having very good success in taking Royal Enfield bikes across the world. We have got Eicher Motors in several of our portfolios as well,” he said.
On the vaccine front, he said, “We are not out of the woods yet. The vaccine has been discovered but the rollout will take at least 12 months to meaningfully change the nature of the economic activity and take us back to the whole world.”
In terms of PMS flows, he said, “PMS flows are strong. We do some foreign institutional investors (FIIs) advisory work and we are seeing very high levels of FII advisory flows there.”
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