Ramesh Mantri Cracks The Code On How To Invest In IT Sector | Talking Point
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00:00The issues are not that big. I'm trying to think if the growth triggers are strong enough for Indian markets,
00:09whether it's the large cap indices or specific portfolios to show very strong earnings growth as well as therefore capital appreciation.
00:21Is there a case for that or currently it's in cricket parlance a swinging wicket and it's better to safeguard the wicket
00:28as opposed to try and make runs?
00:31After four years of strong growth, this kind of growth in earnings is hard to replicate.
00:36We are getting some face effect in place now.
00:40As I said, as economic indicators are slowed down, it will start impacting corporates.
00:45We are seeing even in the consumer sector a fair amount of weakness.
00:52Yes, you are right. One has to keep a balanced approach.
00:58One needs to now look at closely asset allocation, maybe start looking at a more balanced approach.
01:05Avoid real pockets of exuberance which are in small caps and micro caps and all.
01:11And be more tainted with large caps.
01:14And avoid sectors with a lot of exuberance.
01:18Avoid sectors with lots of exuberance. That would mean a lot of sectors.
01:22Ramesh, I am trying to understand this.
01:24Let me try and understand first.
01:26Is the portfolio strategy a bit of a bubble approach wherein you are probably veering towards pockets of value,
01:32but at the same time, because you guys follow this approach of having an opco and a finco
01:38and therefore your valuation models are different than what the street might usually follow.
01:42So I am trying to understand, how is it that you are building out the portfolio currently?
01:46Clearly, the way we see opportunity is in BFSI, in pharma and healthcare.
01:54In technology, we are more neutral.
01:58And then there are pockets of very high growth in India,
02:04which is basically, I would say, a lot of tech-led businesses.
02:10Some of them have gone public in the last three, four years in the markets,
02:14where there is very strong growth.
02:16And then there are strong pockets of growth, let's say, in electronics manufacturing, on the power side.
02:22And of course, select jewellery retailers.
02:27And then there's an order company, like in apparel retailing,
02:31that's growing very difficult to understand in this kind of economic environment.
02:38So those pockets of growth, where the growth is very high in India,
02:42those, of course, valuations are not cheap by any measures, but still tolerable.
02:51While value is clearly there on the banking side, on pharma, on IT also.
02:57If growth comes, value is going to be there in IT also.