Articles
Quarterly Investor Calls
ITUS Long & Short
ITUS Snippets
Articles
Quarterly Investor Calls
ITUS Long & Short
ITUS Snippets
by Vidya Vydianathan
December 6, 2024
Investing in growth in the public markets
Study our investing style and process at length
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Over the past few weeks, we’ve been breaking down our Portfolio Earnings review report, elaborating on the sectors we’re optimistic about and currently invested in. We previously explored the healthcare sector and trends that we expect and on the portfolio level and our exposure in this sector. For the complete report please click on the link provided below-
Portfolio Review – 2Q FY24 – ITUS Capital
Banking and Finance: We are witnessing one of the cleanest balance sheet stages among commercial banks in the previous 20 years. The current valuation of banks is more in line with their average price over the previous ten years, which has caused this industry to be overweight across nation. However, this increased demand has brought about heightened competition, resulting in the compression of Net Interest Margin (NIM) and offering loans at extremely tight rates. Consequently, this situation is expected to impact NIM margin expansion, and it’s the primary reason why we maintain an underweight position in this sector. We have shown this trend in the below charts.
We continue to maintain extremely bottom-up perspective and continue to maintain that even though the valuations are attractive, banking and finance would be a tactical addition to the portfolio for us than structural.
We have effectively covered all the sectors that are the focal points of our portfolio, providing our perspective on these specific industries. Starting next week, we will explore a broader range of topics that we would like you to delve into and read about.
Meanwhile, to keep you updated, we’re committed to our SIP program, offering a convenient way for investors to regularly improve their portfolios. Feel free to check out the benefits for your clients. If you need more info, reach out to your dedicated relationship manager at [email protected].
These weekly episodes are now available in our website for your quick read and you may access the same in the below link.
Weekly Enlightenment Archives – ITUS Capital
