"Companies like Persistent, LTIMindtree, Coforge have delivered a decent set and the management commentaries have been very optimistic. They do not believe that pricing issues will come through and order wins will continue. As EBITDA margins start normalising after the first half where wage hikes and the rest in terms of an increased allocation of operating expenses largely come through on the balance sheet, numbers should probably remain extremely stable even in the second half."
So, contra bet, we have been long on the PSUs generally. PSU banks, PSUs and that trade has played very well. We are still very bullish on the PSU banks given the earnings.
"We believe that election is a very big event and big festival in one way and a lot of spending happens in the rural side and we have seen historically that whenever Lok Sabha election happens, the credit demand goes up. Even the collection efficiency dramatically improves. An election year is a good year for the MSME and housing segments as well. So the election will not have any negative impact, it will have a positive impact as such."
“After reaching 1.22%, we would like to see ROA remaining sustainable. With ROE at 25%, hopefully we should be in a position to keep it around this level. Also, we have got very well-oiled machinery on ground to take care of any stress book.”