Energy is a topic that has generated a lot of excitement. It is not that India does not consume energy, but the excitement it generates energy stocks is gone.
Chakri Lokapriya: Power will continue to do well. If you look at power demand, the gigawatt capacity that India is going to add in the next five years is larger than the combined power used in the entire European Union. So, that is the scale of activity that companies will have to add. NTPC will lead the entire effort. It is a public sector company, it has natural advantages in getting government clearances. Also, there is the combination of thermal and renewable energyIndia has to adhere to environmental regulation only in 2070. That means for another 30 years, thermal companies can add capacities in India. So, with a combination of both (thermal and renewable), energy will do just fine. They may have paused, but the secular growth is still there in NTPC, Power Grid, Sterling & Wilson and Suzlon. Overall, there is tremendous growth.
Has Ola really come and gone? Is it a stock that is here to stay? Can it do what Zomato did? Can it do what Paytm did?
Chakri Lokapriya: In terms of valuation, the company is a valuable player in the EV sector. In recent years, its market share was probably around 12-13% and in recent years, Bajaj Cars and TVS Engines They have increased their market share in the EV space, so this trend will continue for the next few years until Ola consolidates. Its valuation, on the other hand, is at least four times that of TVS Motors and three times that of other regional power companies. Until it catches up, in terms of valuation, the stock is likely to tread water. Yes, it also makes cells, which will help its valuation, but that is a story for a couple of years down the road.
At which end of the pharmaceutical chain would you like to work?
Chakri Lokapriya: We will continue to look for companies that have greater exposure to the US, the largest ones health market There have been many more such occurrences around the world. So, whether it is generics or even APIs, price erosion is a perennial factor that will continue and so it all depends on the innovation of companies and the periods of exclusivity they obtain.
In this context, and given that this is an election year, once the new government takes office in the US early next year, there will be more emphasis on healthcare, so Indian companies catering to the US market will continue to be important.
What is your position on the entire range of consumer goods?
Chakri Lokapriya: In the FMCG sector, weakness persists. The latest data shows that volumes are yet to pick up. Hopefully, as we approach the festive season in a couple of months, things will start to improve. It is a wait-and-watch strategy. We are not buying anything new or incremental in the FMCG sector.In terms of mid-cap recommendations, what are the key long-term prospects or best stocks?
Chakri Lokapriya: Tata Elxsi The situation has corrected itself quite significantly. Now, it will benefit from IT tailwinds and the IT sector of the manufacturing segment will recover quickly. I think Tata Elxsi will be one of the good beneficiaries.
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