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Kotak Mahindra AMC upbeat on largecap IT and auto ancillary stocks

Updated : November 14, 2018 06:32:27 IST

Kotak Mahindra Asset Management Company on Tuesday said it's upbeat on largecap IT and auto ancillary companies.

In an interview to CNBC-TV18, Shibani Sircar Kurian, vice president and head-equities research, said, "Most of the companies have reported a healthy topline number, but that has not necessarily translated into both operating profits and earnings. Therefore, earnings growth have been muted this quarter."

Consensus earnings estimates for FY19 have been cut to a reasonable level of 12-14 percent, which seem to be in-line with market valuations, said Kurian, "So, valuations are not cheap, but are at a reasonable levels now both from earnings growth perspective and absolute levels."

The house is also positive on auto space, but would look at pockets of opportunity over there.
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