The space to watch out for is IT with a lot of news flow. We saw good commentary from but there was no buying interest at all and even for , we are not seeing a lot of buying. What is happening in this sector? Do valuations continue to be high or is there a question mark on growth going forward?
People are apprehensive about growth, not for FY23 but for FY24. This recession is the most expected and most wanted recession probably all over the world; everybody has been talking about it for the last so many months. That is creating a lot of apprehension in the minds of investors.
Although companies have been delivering numbers – even TCS delivered good numbers – and it was a positive surprise. But again the answer is probably these are all the deals which were shut prior to the problems of recession and all this. Maybe what will happen in the future is what is more important. I guess at least for one more quarter, people will wait for this and then maybe when the new calendar year starts, new budgets will come and people will take a call from there.
We have also kept this sector under our watch list. In fact, in last month’s note, I have written that two sectors to keep under watch list would be pharma and IT because probably all the froth has gone and now it is a trigger point which will start buying interest in these two sectors. S\o, maybe that we are coming very close to that but another quarter or so we will have to wait.
Is there merit in buying ? It is one of those stocks which has been hit out of the park this year?
within the two-wheeler space, mainly because they are into that niche segment of super premium bikes and all of that is gaining a lot of traction. They have launched a new vehicle which has gained a lot of prominence amongst the young users and so numbers are coming very good.
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We stick with because of all these product launches, the way they are gaining market share and the way they are expanding in other markets besides India. A lot of export gains are coming for them and Eicher Motors is our preferred pick there.
What about the textile play? I really do not know what is exciting the market – their land bank, their realty foray or it is the textile play, but do you have an opinion on any of these names?
In the apparel segment, we have a buy on Manyavar and . We like Manyavar mainly because it is a play on the luxury segment or upward premium segment buying behaviour. In the last many months, especially after Covid, this segment has been doing very well. On almost all sides, whether it is or any consumption side, the higher end part is working very well. We have picked Manyavar there.
we like but because it is a combination of real estate and apparel, we are not clear what we are banking on, although we are very gung-ho about real estate. We are very positive on real estate also but for real estate we will play a pure play like or Brigade or a rather than go through Raymond.
I think we have chosen the pure play part which is more on Manyavar and Vedant Fashions. In other consumption plays, we have
, Tata Consumer and . There is a lot of consumption plays already in the portfolio in various strategies.
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