Market Lull Ideal Time To Pick Up Stocks, Says This Investment Adviser

The current lull in the stock market is an ideal time for patient investors to identify value, believes Rajesh Kothari, founder and managing director of AlfAccurate Advisors. 

“We always find a little bit of a dull and boring period as a more interesting period for us, for stock pickers. Those are the times where you don’t need to lose your patience,” he said.

Kothari is optimistic about specific sectors, including auto ancillaries, capital goods, pharmaceuticals, platform companies, and defence-linked stocks. 

“Market will keep delivering reasonable returns, but deep diving into opportunities is the way to make serious wealth creation over the next three to five years,” he said.

In capital goods, Kothari pointed to firms involved in high-voltage direct current projects, data centres, and decarbonisation. “One of our largest holdings from the last one-and-a-half to two years has been in this segment, and we keep adding to that name,” he said.

On CDMO pharma companies, Kothari believes in their potential for long-term growth. “As more products move from the trial stage to commercialisation, especially in GLP-1 and peptide opportunities, the growth trajectory over the next 24 to 36 months looks strong,” he explained.

Platform companies also remain a focal point in his portfolio. “We continue to like one of the exchanges and leading digital insurance plays,” Kothari said. 

Kothari also disclosed a selective approach to the banking and financial sector. “Rather than looking at banking as a whole, we micro-segment the sector,” he said.

He has been increasing weightage in non-banking financial companies and specific private sector banks. “We own one of the largest gold finance companies and a leading second-hand commercial vehicle financing firm, both of which are doing exceptionally well,” Kothari said.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.