There is less amount of stress from the NPA side. Banks are recovering at a faster pace, which is very encouraging news as far as the business is concerned.
At the same time, credit growth is picking up, and many of the banks, particularly corporate banks and private sector banks, are seeking prospects of monetising some of their verticals. That is where it is demanding portfolio action into these stocks. I would agree that to an extent, these stocks have run up a little bit ahead of time as far as their valuations are concerned. But as I always believe that when an additional amount of fund flows gets into the market, they look around for the size of the companies in which they could make investment, and that is where the likes of ICICI Bank, Kotak are finding favor in the portfolio of fund managers. Watch here
Deven Choksey, MD, KR Choksey Investment Managers
The COVID period did highlight the resilience of certain business models like Dr Lal Pathlabs, Metropolis Healthcare, Thyrocare Technologies exhibited. The mix for them, at least till last quarters, had considerably moved towards COVID. So we hope next year this revenue stream will subdue. We like Metropolis, Dr Lal Pathlabs, and Aster DM Healthcare. We like Aster because the valuation argument is most favorable there. There are no concerns about the operational performance of these companies. Watch here.
Anmol Ganjoo, JM Financial Institutional Securities
We are projecting 35-40 percent earnings growth in Q3 of FY21 itself for the pharma universe. We like Divis in this space. We continue to have Sun and Lupin in our model portfolio. Also, we like Ajanta Pharma and Granules. Therefore, I am excited about pharma as far as earnings are concerned for the next two years. Things seem to have turned around well in FY21, and they are expected to do well even in FY22. Watch here.
Gautam Duggad, Head of Research-Institutional Equities, Motilal Oswal Financial Services
After lockdown, we made a good recovery, based on our cost efficiency measures, which we have taken during CDR, which are now repaying us in terms of our profitability and margins. So now we see it is a good time to consolidate the business.
On the revenue side, the combined entity will be approximate Rs 20,000 crore plus turnover. The balance sheet will be comparatively much stronger. Watch here.
Anurag Mantri, Group CFO, Jindal Stainless
China has deployed 700-1,000 base stations in 2020, and they are planning to double that in the next year for 5G. For the 5G base station, it is important that every single base station has to backhauled with optical fiber. So, trend-wise, we can see that since China is deploying 5G in a massive manner and we can see that the fiber demand should increase in China. We are seeing this trend also coming in from all markets. Watch here.
Anand Agarwal, Group CEO, Sterlite Technologies
In Q1 and Q2, the market itself was pretty sluggish. There are individual cases which have done well because of products in their portfolio, including products for COVID in some companies, and that has caused their India portfolio to do fairly well. Going ahead, we believe India will pick up in Q3 and Q4, and going forward, growth will certainly sustain. Watch here.
Ramesh Swaminathan, ED & Global CFO, Lupin
Financial services may still have near-term challenges given post the moratorium period has just started since September. Challenges do exist today due to asset quality and disbursement growth, and banks are still relatively cautious.
Overall, we are currently selective to invest in this sector. However, we would prefer those where there is access to capital, and the quality of the book is secured. Conservative private banks and NBFCs have up-fronted provisions, and within NBFCs, we prefer secured lending companies like HFCs with low exposure to builder loans or microfinance companies despite being unsecured and at risk. Given that their target market is rural lending or agriculture, which are in the essential category, selective opportunities exist in the microfinance space as well. Watch here.
Dhiraj Sachdev, Managing Partner & CIO, Roha Asset Managers
If the government wants us to give up our facilities as storage facilities, we will do that. If they want us to send our doctors into rural villages to do inoculation, we will do that, we are here to help, but we haven’t been approached. Nothing has been communicated to us, and it is likely that maybe we are not a part of that, and that is fair as well because the public healthcare facilities are far vaster and much more spread across the country than private hospitals. Watch here.
Viren Shetty, Executive Director & Group COO, Narayana Health
(Edited by : Jomy)