Manish Sonthalia, head equities- PMS at Motilal Oswal AMC, on Monday, said that the move away from investments in China could have a positive rub-off impact on stocks in India.
Speaking in an interview with CNBC-TV18, he said, “The move away from investments in China could have a positive rub-off impact on stocks in India as well. Therefore, we are positive on the market. Don’t think any meaningful correction will be seen; whatever correction will come, will be brought into because of fund flows moving out of China and investing into India.”
On listings, he said, “Ever since the listing of Zomato, most of these companies, the likes of Jubilant Foodworks, are all transforming themselves into food tech. So, multiples get rerated.”
“India is at a very nascent stage as far as consumption of fast food is concerned, so there is going to be long-term growth in this space and the good thing is that they are opening up stores when the lockdown has happened, so that is going to play out in terms of turnover going into the future and markets are building on what could be the potential earnings for some of these companies and valuations are in-line with the sector average. So it is in a sweet spot, it's gathering momentum and likely to do in line with the market,” Sonthalia said.
He believes that Britannia can be a relative underperformer in the fast-moving consumer goods (FMCG) space.
For the entire interview, watch the video