In an interview with Abhishek Kumar, Shenoy discusses how domesticfocused sectors like manufacturing, defence, railways, domestic consumption, and infrastructure are ready for long-term growth. Edited excerpts:
What is your current view of the market? Are the earning trajectories supportive of valuations?
Largecaps appear reasonably valued, with a price-to-earnings (P/E) ratio of about 23 times, and median earnings growth of 15 per cent year-on-year. Broader markets seem slightly frothy, with P/E ratios over 30x, while earnings growth remains around 15 per cent. Markets always carry some froth.
In this context, privatesector banks are perhaps the cheapest, while defence and manufacturing companies, along with a few fast-moving consumer goods players, are among the most expensive. Identifying where the froth is will only become clear as future earnings are reported.
Predicting market highs based on perceptions of valuations alone is impossible headwinds?
The honest answer is that we don't know. We prefer to respond rather than predict headwinds. Challenges will always exist, such as a possible US recession, a debt crisis in Europe, or a slowdown in China. There's also geopolitical uncertainty.
Bu hikaye Business Standard dergisinin September 17, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin September 17, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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