Raunak Onkar, co-fund manager, equity and head of research at Parag Parikh Financial Advisory Services Mutual Fund (PPFASMF), in an interview with CNBC-TV18, said things are not same from the first lockdown till the second one.
“Now we at least have some visibility of vaccinating a large chunk of the population. We have been seeing some of the very good quality businesses are now trending to be a little bit on a higher valuation side,” he added.
“We were not very sure about the lending type of businesses, so we reduced a bit of lending businesses and we also found the valuations attractive in non-lending financial services kind of businesses. So we bought some of those shares,” he mentioned.
“Some of these areas where we know that the trends are going to be long-term and the valuations have not been stretched, we have decided to focus more on them in the portfolio and maintain their proportions whereas wherever the valuations have been stretched, we are trimming them,” Onkar said.
According to him, some of the longer-term secular stories like IT services, software, technology still have a long tailwind remains to be seen how fast they can grow going ahead,” he said.
“We have also added to the IT services bunch, the technology companies that we own. Digital advertising companies like Facebook and Google, we added to those,” he further added.
He sees improvements in ITC business. “Not sure they will be as fast as we all expect them to be but from a cashflow point of view, the kind of businesses we like to invest in where there is a steady cashflow, the companies have a growth runway ahead of them and at the same time are run by the competent people, it falls in that and the valuations are not too bad,” he explained.
For the full interview, watch the accompanying video.
(Edited by : Bivekananda Biswas)
First Published: IST