Gautam Duggad of Motilal Oswal Financial Services said the recovery after the second wave seems to be much faster than after the first wave.
According to him, the mood has been quite buoyant, which is reflected in the corporate earnings as well as the markets. Consumption seems to be recovering ahead of expectations. Financials have seen good asset quality improvement and collection efficiencies have improved. Technology intensity continues to go up and some of the digital tech companies have recovered far better than what they had seen after the onset of the first wave, said Duggad.
Talking about the conference, he said, “There were diverse set of speakers representing various sectors, it actually just reinforced what we've been hearing for some time now. Things are better than expected, as far as recovery is concerned, whether you talk about consumption, financials technology, commodity or even the new-age disruptors. There were four or five new unlisted tech-oriented companies that presented at our conference.”
One of the themes that they have been very bullish on, of late, has been financials
and IT, said Duggad, adding that those were the two sectors, which formed the highest overweight in our model portfolio – tech at about 350 basis points and financials at about 300 basis point.
Duggad said SBI Chairman at the conference was talking about the sharp recovery in the retail side of the loan growth.
"Overall balance sheet quality is further improving. We've already seen in the last three years, the credit cost has come up significantly for SBI and it looks like the next talk will continue to see that improvement plus segments like home, gold loans, auto loans, and personal loans are also seeing some uptick," he added.
, they had companies like Tata Consumer and Burger Paints. "Tata Consumer
happens to be a part of our top three out of four ideas in the consumption space and also a part of the model portfolio," said Duggard adding that the companies sounded extremely bullish and some of their goals are the integration of the full businesses, they are running ahead of the time.
The discretionary category space seems to be benefiting from three factors - better-than-expected recovery, higher vaccinations, and the pent-up demand and also the fact that the festive season is near, he said.
There is a host of positive factors to take away from as far as individual companies or for that matter, even sectors are concerned, said Duggad.
For the entire discussion, watch video