Category: Interview

So we are in 2003 as far as the corporate profitability is concerned though we are not as cheap, you know 2003 was a great time when economy was very bad as well as the valuations were even worse. This time the economy is obviously we can compare it with 2003 and from here on it can only grow faster but valuations are obviously not that cheap.

On top of it, you have a scenario where interest rates have come off and they can still come off further. I think which is different from 2003 is the fact that global liquidity is available in plenty so if $15 trillion is invest in negative interest rates globally, I think the move towards some of the larger economies which have great macros and good political stability like India, you might have liquidity which can come in and which not only impacts the markets technically in terms of high flows but also enables the companies to reduce their cost of finance quite significantly and also aids in capital building which is the need of the hour as far as the country is concerned.

So just to sum it up we are in 2003 as far as the economy is concerned and revival can be very swift but in terms of valuations we are definitely not in 2003.

So from 2003 to 2008 the market went up six times, maybe in the next five years it might not go up six times but it definitely looks like going up.-said Sunil Singhania,Reliance Mutual Fund

I am a permanent bullish investor and I always feel bullish. I am not concerned about the bad portion of the economy. As an investor I pick and choose where the opportunities are and I will put money out there. In a bad time, we will get good price and in good times, we get good return.

In a lot of companies, there are fantastic franchises. In any valuations module, there are three components — breakup value, franchise value and growth value. Very few companies are growing rapidly, but  you have to balance the opportunity — how much you should pay for the future growth and how much for the franchise. This game is now very calibrated.-said Raamdeo Agarwal

Q: Do you see earnings growth, does your research team and you share the confidence that FY17 there will be that kind of double digit earnings growth?

Uday Kotak: We believe so. We believe that earnings will pick up particularly in the second half of FY17.

Q: We have been pushing it behind by two quarters for perhaps the last two years. Is this it finally?

Uday Kotak: Depends on the monsoons and that is a very important criteria and also the global situation, as long as the global situation is not hostile and we have a decent monsoon, we have a fair chance of seeing the economy begin to bounce back in the second half of FY17.

-from Money Control