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Indian valuations are high; bullish on pvt banks & tech space: PPFAS MF's Rajeev Thakkar

Indian valuations are high; bullish on pvt banks & tech space: PPFAS MF's Rajeev Thakkar

Speaking with Udayan Mukherjee, global business editor, Business Today TV, Thakkar said private sector banks have had a very good run, in terms of the numbers they have reported, their balance sheets are clean, credit costs are muted and credit growth is back.

Market guru Rajeev Thakkar Market guru Rajeev Thakkar

India’s consumption-oriented space has been taking a breather given that valuations have become very excessive, said market guru Rajeev Thakkar, adding that current valuations do not leave any comfort for stock prices to increase.

Speaking with Udayan Mukherjee, global business editor, Business Today TV, Thakkar said private sector banks have had a very good run, in terms of the numbers they have reported, their balance sheets are clean, credit costs are muted and credit growth is back. "So, broadly in the market, there are pockets which are overvalued. We are staying away from those and, we are trying to find attractive purchases in the undervalued space,” said Thakkar, CIO & Director, PPFAS Asset.

Elaborating on his approach towards the banking, financial services, and insurance (BFSI) space, Thakkar said he is quite positive about the space. The focus is on companies that are relatively more asset-light, where there's not much of a possibility of losses, and which can participate in the overall growth, he said, adding that his picks are private sector banks, select NBFCs, and then public sector banks.

The market veteran is quite optimistic about the technology space.  According to Thakkar, there is an increased focus on profitability and there is more focus on cost controls, adding that strong companies are monopolies in their area of operations and their valuations are not demanding at all.

Thakkar added that investors coming to equity markets should be prepared for the long haul and not expect an environment, where there will be no volatility. “If someone is prepared to come and invest for at least a four or five-year horizon, then there is a possibility of earning decent returns,” Thakkar noted.

 

Published on: Nov 23, 2022, 4:02 PM IST
Posted by: Vivek Dubey, Nov 23, 2022, 3:57 PM IST