Jaipuria provides insights on various sectors including real estate, defense, IT, pharma, and financials. He emphasizes earnings visibility, sector consolidation, and selective investments to navigate market challenges and optimize returns in the evolving economic landscape. He further says that he does not buy textiles stocks because liquidity is a problem in a lot of these stocks and they are very cyclical in nature depending on raw material prices.
Jyotivardhan Jaipuria, Founder & MD of Valentis Advisors, is cautious about expensive valuations in the market and emphasizes the need for a time and price correction. Despite this, the result season ended with better than expected earnings growth of around 17%. Jaipuria has increased their cash position and sees opportunity in both NBFCs and banks.
Jyotivardhan Jaipuria says: “Smallcaps probably will underperform the largecaps over the next six months. So over the next two years, three years, five years, I would still think that the smallcap will do better. Because the economy is going to do well and in that environment, earnings for the small cap are going to be much better. ”
“Pharma had been going through bad times for the last 18 months in terms of stock price. Earnings were not that great but will turn around and that is one segment where we are playing. IT is also there. It is coming on our horizon after a long time. Because we have been underweight on this for quite some time, like we used to say, buy local, avoid global.”
“Whenever there is consensus on something, it is always one of the most dangerous sectors to go into. It is marked by over ownership. We like under ownership whenever there is consensus buy, this over ownership we are very sceptical about. But there are two-three things which are going for the bank sector. We have to remember that last year was a great year for the banking sector.”