DSP Asset Managers’ Vinit Sambre Bets Big On These Sectors Amid Market Slowdown

Healthcare, information technology (IT), building materials, chemicals, and metals are the key sectors that Vinit Sambre, the head of equities at DSP Asset Managers, is betting on despite a slowdown in the Indian stock market.

In a conversation with NDTV Profit, Sambre said that the Indian market has seen a “linear upmove” over the last three years but now reached an “inflection point” in terms of corporate growth.

“As a market, first of all, the last three years have been beautiful for the Indian equities, and we have seen sort of a linear upmove as far as the markets are concerned,” Sambre said.

“But we have, in a way, reached a bit of an inflection point when we look at the corporate earnings growth,” he added.

Sambre mentioned that his organisation is looking for companies with strong moats and good cash flows, among other things.

“We are trying to look for companies with strong moats, good cash flow, and decent ROCEs. Across sectors, we have great divergence,” he said.

Sambre added that healthcare is a sector that may provide opportunities to investors amid a slowdown in the market.

“If I have to talk from the sector perspective, we see such opportunities largely present in sectors like healthcare, within which we have pharmaceuticals and hospitals,” he said.

The DSP Investment Managers executive saw potential in this sector to give high returns to investors.

“We continue to have a good view on healthcare, which should remain for this year. Last year, the healthcare sector produced the highest return. I think that could continue this year as well,” he mentioned.

Sambre was also bullish on the IT sector.

“(We see opportunities in) segments like IT, where companies do generate decent cash flows and ROEs,” he said.

Sectors like building materials, chemicals and metals that are in a low cycle today may start to do well after coming out of the macro environment that we are in at present, Sambre stressed.

“We are trying to look at, maybe the sectors which are today in the lows of their cycle. A lot of companies in sectors like building materials, chemicals or metals have been in a low cycle today because of all the macro setup, or the environment where we are today,” he noted.

“I would imagine that as the cycles change, some of these categories should do well,” Sambre added.