Raunak Onkar, co-fund manager - Equity and Head of Research at Parag Parikh Financial Advisory Services Mutual Fund (PPFAS MF), believes it is too soon to comment on COVID-vacine related plays.
"We will see how the business performs overall in the market and then probably take a call whether this is a good idea or not but it is too soon to comment," he said in an interview with CNBC-TV18.
"It is not like we will be left behind the world in terms of COVID vaccine distribution, so it is good to see that supply chain is available. However, I would wait for data in terms of how it helps the profitability, how much the cost escalate, how are these longer-term business models that they can then start scaling in different areas as well."
"So vaccine is definitely an immediate need and most people are probably going to bend themselves backwards for demands being met. The whole idea is to see if this is the long-term business model that they can create out of it," he said.
Explaining his exit in Mahindra Holidays, he said, "There are three reasons why we sell something, one is the valuation becomes completely unreasonable according to us. Secondly, if we find that we have made a mistake in assessing the business and we will want to exit because we will want to reassess and see if we want to buy it later on. Third reason is if relatively we find some other business more attractive then we will trim the existing holding and we will deploy our money in some other stock or business."
"In Mahindra Holidays it is a third one. We have been holding Mahindra Holidays for close to five years now. We have found better opportunities to put our money in whereas we give enough room to Mahindra Holidays to perform as a business," he mentioned.
For entire discussion, watch video…