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market | IST

Nippon MF’s Bhan is betting on commercial vehicle cos; hospitals, diagnostics too on buy list

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Nippon India Mutual Fund is bullish on the commercial vehicles (CVs) space, Sailesh Raj Bhan, deputy chief investment officer (CIO)-equity investments, told CNBC-TV18. He also believes branded domestic pharma, hospitals and diagnostics will continue to enjoy advantage. He further said that he sees valuations in PSU banks improving but the value-to-reward equation is still stark.

Nippon India Mutual Fund is bullish on the commercial vehicles (CVs) space, Sailesh Raj Bhan, deputy chief investment officer (CIO)-equity investments, told CNBC-TV18.
“Electric vehicles (EVs) will not be a very important or a very negative factor from a 4-wheeler passenger and commercial vehicle space and those are the spaces we are positive on because valuations are very reasonable, low interest will also support, regulatory conditions will support and hence the space is attractive. However, in the near-term, it may have challenges but valuations are favourable,” Bhan said.
According to him, branded domestic pharmaceuticals, hospitals and diagnostics will continue to enjoy advantages. “Real value creation will be, with a significant bias to domestic businesses and domestic healthcare businesses including diagnostics and hospitals. So domestic branded pharmaceuticals, hospitals and diagnostics would continue to offer material advantages in pharma,” said Bhan.
However, said Bhan, the economics of COVID-19 damaged sectors like hotels. It could see a big positive structural change in the future.
On PSU banks, he said, “Valuations are improving but the value-to-reward equation, or value equation versus the kind of businesses there are, is still stark. So, any shift there like divestments, which are underway or progress, will matter a lot because a lot of these assets especially in utilities and all are very attractive and the earning cycle for some of these are improving.”
For the entire interview, watch the video