Last week, we shared insights with chart on the real estate markets and anticipated an inflow of capital into investment options such as Public Equities and Real Estates. This week, we are featuring an interview of Mr. Naveen with Money Control.
Earnings outlook- Looking at recent earnings, a favourable trend is evident in sectors like capital goods, auto, real estates, banking and finance. B2B businesses continue to show robust growth and Automotive sector also witnessing volume expansion. The banking and financial services sector is experiencing strong loan growth, exceeding 20 percent. However, there is a notable contraction in the NIM (Net Interest Margin). Our expectation is that this NIM contraction trend will continue in the coming quarters that implies the need for careful monitoring in the context of ongoing financial trends. The sectors that have headwinds are chemicals and textiles. Our earnings estimation does not happen quarterly, and we anticipate strong cycle for the supply side of the economy.
On auto-ancillary companies– The business is cyclical and very few companies maintain their pricing power across time and adds value addition through technology. We are invested in select auto-ancillaries that scale through tech edge and process efficiency. Buying them today solely depends on the valuation comfort and margin of safety.
Real Estate Segment– The balance sheets today looks better than previous cycles as they have de-levered and inventories has been cleared. Our portfolio includes real estate ancillaries rather than developers, we suggest investors consider allocating a portion of their investment to diversified real estate baskets.
We anticipate the current government to win the general elections in the 2024 and a potential volatility in the market in mid-2024 if there arises any risk to the government. On opportunities of investments for Diwali 2023, we focus on infrastructure and power as sectors for 2-3 years.
To read about the complete interview- click the link- https://lnkd.in/dyrQZ-we
These weekly episodes are now available in our website for your quick read and you may access the same in the below link.
Also, as a part of our ongoing commitment to keeping you informed, we remain dedicated to our SIP program, providing investors with a convenient avenue to regularly invest with the fund. We encourage you to explore the benefits of this program for your clients. If you require more details, please don’t hesitate to reach out to your dedicated relationship manager at [email protected].
Till we see you next week, have a great and safe Diwali with your loved ones.