Saurabh Mukherjea highlights the rise of Indian women as a major theme in the budget. He mentions Rainbow Medicare that are focused on this theme. He also discusses the government s focus on creating opportunities for the poor rather than giving handouts. Mukherjea suggests looking at Eicher Motors as a play on the rural recovery and the Volvo Eicher side of the business. He further talks about the potential of Royal Enfield and the growing EV market for VECV.
“The smallcap inflows have been so overwhelming that the overvaluation of smallcaps relative to largecaps is at an all-time high. There is no precedent in Indian history for what we have seen in the last couple of years. Given that anomaly, the re-pricing of largecaps has a long way to go. Some of it has happened over the last couple of weeks, but I think this is just the beginning.”
" The sheer amount of money foreign investors make wont go into smallcaps so much; it will end up going into the larger stocks and we are hoping that Consistent Compounders will continue to make money from that. We are up 26% this fiscal in CCP. We manage roughly a billion dollars with our clients and we are hoping that as FIIs return, that 26% will be further augmented by FII flows."
“ Lower quality names in our country have done well over the last couple of years. Our companies have taken a back seat, which is why we are finding it relatively easy to find high-quality companies. We are trying to figure out if this is a good time to ramp up our position in specialty chemicals, as Chinese dumping seems to have abated.”
I wouldnt worry about RBI rap on Bajaj Finances knuckles. At the most, it going to impact around 2% of Bajaj Finance books and if the management expeditiously deals with the issue, the impact on a full year profit should be hopefully less than 1%. A new addition, Trent has many more engines than the market understands it to have.”