Valuation puzzle
When conventional valuation wisdom is not enough to truly value a loss-making but high-growth company like Zomato, it’s time to look at it from a different perspective. As Zomato controls a considerable market share in India’s food delivery market, it will be safe to value the company’s growth in line with the whole industry’s growth.
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Housing boom
After a downturn of 7 years in the residential property investment cycle in India, is the country set to see a major up-cycle in the sector? Yes, says Jefferies’ Chris Wood! The investment guru says that India’s housing prices are very affordable with respect to the income levels and with the recent structural changes at policy levels, India has the potential for an investment up-cycle, he adds.
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Riding the alpha generators
In a phase of economic recovery and growth, alpha generators are not the benchmarks. Despite a considerable run-up in the share prices of small and midcaps, a long road of recovery and capex cycle will ensure a further upside, says Ajit Menon, CEO of PGIM India Mutual Fund.
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Nifty laggards
Dalal Street veteran Mukul Kochhar opines that Nifty has a set of stocks that may not benefit from the growth India may see in the coming days. Stating that manufacturing will dominate the upcoming economic recovery and growth cycle, he says not many from this space are in the Nifty pack.
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Pricing headwinds
Specialty chemicals have seen a structural bull run in the past 4-5 years. Mahesh Patil, CIO at Aditya Birla Sun Life AMC, points out in this interview that the sector’s valuations are near two standard deviations above the long-term averages, making the sector quite pricey. He also adds that specialty chemicals can also see some volatility depending on the pricing moves.
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