Private sector banks: Is the worst finally over for Paytm? Amnish Aggarwal explains

“I think there is an improvement in visibility, which has resulted in share prices reacting to the news now and perhaps at the time of the results, many stocks reacted positively to this,” he says. Amnish AggarwalPrabhudas Lilladher.

The other thing I wanted to talk about is what is actually happening with IT. While of course the Nifty IT index is at an all-time high, management communication now seems to be turning quite positive. We have heard from LTIMindtree, now HCL Technologies In their investor days, they said they expect double-digit profits. growth In the medium term, demand is becoming optimistic and they are quite hopeful. BFSI Actually, turning around.
Amnish Aggarwal: If you look at the comments that a lot of the IT companies have made in Tokyo, I think things are finally changing and as people are also expecting the Fed to cut interest rates, maybe in September or October at the latest, plus after the US elections, people are expecting the uncertainty to ease, that is why now the comments from the IT companies, be it BFSI, retail or ER&D, are positive and a lot of these companies, particularly the midcaps, can see that the growth rates are now reaching double digits. I think there is an improvement in visibility, which has resulted in the share prices reacting to the news now and maybe at the time of the results, a lot of stocks reacted positively to this.
I am curious to know your view on the prospects of a deal like InterGlobe Aviation. We are talking about a block deal which is probably worth around Rs 10,300 crore. There has been quite a bit of news here recently as well. We have seen that domestic air traffic has also improved. What is your outlook?
Amnish Aggarwal: First of all, we have a fairly positive view on domestic aviation and InterGlobe Aviation in particular because it has a very strong market share. Traffic is increasing and as we move forward, so will profitability. So, I think Indian aviation is likely to do well and the company has a strong balance sheet – I think it has Rs 12,000-15,000 crore in cash and it is also expanding quite fast. So, we have a positive view on InterGlobe Aviation from a medium to long term point of view and it is on our list of top picks as of now.I don’t know how you interpret Paytm’s performance. Of course, the stock has recovered quite a bit from its lows of the year, but with all the news, do you think the recovery is justified and investors should pay attention to it now?
Amnish Aggarwal: We are not following Paytm closely, but the worst definitely seems to be over. The company raised cash by selling one of the verticals to Zomato. Now, if they apply for the new license and then continue with things in a more regulatory manner, then it can definitely be said that the worst is over. As far as retail finance and all that is concerned, we do not have coverage on this name.What is the outlook for some of the recent listings we’ve seen? Has there been anything that has caught your eye?
Amnish Aggarwal: If you look at Ola Electric or FirstCry, I think particularly in the case of Ola Electric, the upside move has been very sharp because the stock was being offered at 75, 76. Then, it went to 140, 150 and now it is at 125 or so. I think in some of these stocks, which are relatively, you could say, tech startups, we are going to see a lot of volatility, at least in the short to medium term until there is some kind of stability, both operationally and financially. So, I think as far as IPOs are concerned, it is time to be very cautious given the way the valuations are there. Also, particularly in the case of companies that are tech-led, one needs to be very clear because initial volatility can lead one to take exposure at higher levels.
Is there anything major expected from Reliance’s AGM today? Anything specific that the markets are looking forward to?
Amnish Aggarwal: As I said earlier, I would be more attentive to what they say about green hydrogen, new energy and all these green initiatives. Because if you look at the stock price today over the last two quarters, it is more or less range bound. So whatever happens in the case of Jio Platform or retail, that is already more or less built into analysts’ expectations and market targets.

And any additional alpha in Reliance is going to come from these new energies, green hydrogen, solar and all these kinds of initiatives. So that would be something I would be more attentive to because it is not something that people are currently factoring into company valuations. So, if there is a concrete plan in that regard, I think that could be positive for Reliance.