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Investec Cap bullish on electronics manufacturing and chemicals

Updated : December 03, 2020 14:16:03 IST

There are investment opportunities in industrial plays which are quite cheap currently, according to Mukul Kochhar, co-head of equities at Investec Cap Services.

“Stocks that are trading below cash on balance sheet, good companies with no history of either making a loss are trading below the cash on the balance sheet and this is where I think the next value picking opportunity is going to be based on valuations, some industrial plays which are just very cheap,” he elaborated.

On specific stocks and sectors he said, “What is common in sectors where we have done well is economies of scale. Economies of scale is key for India success and industries and we see that happening in a few sectors.”

“One is select sectors in electronics manufacturing and the second one is chemicals. For the next 3-5 years that is going to be key investible theme in India because the base is so low, some of these companies will continue to grow at explosive rates on a small base given clear government support for manufacturing going on,”  he added.

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