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Vinit Sambre, Head of Equities at DSP Mutual Fund, in an interview, explained how keenly they watch these companies.
“That is how we would like to play as of now and watch this space, see the company, see the visibility of these companies breaking even and then maybe take a big call on such names,” Sambre told CNBC-TV18.
When asked about Ola Electric, he said that the stock appears to show excitement for electric vehicles. He mentioned that the company has not earned a profit yet and that future profits will be important for its value. He also stated that established companies in the internal combustion engine sector, deeply pocketed, are also betting big on electric vehicles (EVs).
Also Read: Ola Electric shares jump 20% after HSBC initiates coverage with a ₹140 target
Talking about banks, Sambre said that banks are currently valued below their five-year average, which makes them appealing from a valuation standpoint. However, he added that recent developments in the banking sector suggest there are no strong drivers for a significant increase in their value.
“The net interest margins (NIMs) may be under pressure; the delinquency is incrementally rising. So, those trends will mean that the banking stocks, while they are cheap, will require more catalyst for them to sort of see up move,” he added.
While discussing the pharma space, Sambre said India benefits in the pharmaceutical sector by supplying generic drugs to the US. He added that while the sector seems stable, valuations have increased and are no longer as affordable as they were a year ago. However, they are still considering some selective opportunities.
In the US, they are also looking at the act on the biosimilars and maybe that also helps some of these Contract Development and Manufacturing Organisation (CDMO) players, which is also one of the areas which we are focusing on.”
For more details, watch the accompanying video.
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