India's 'Nvidia' Could Be A Zomato Kind Of A Company: Motilal Oswal Chairman Raamdeo Agrawal
Markets may reach new highs around Diwali, the chairman noted.
Raamdeo Agrawal, Chairman of Motilal Oswal Group, has a positive outlook on the growth of the Indian market. He said that while since Covid, earnings might have taken a hit, the last quarter was actually better and exceeded analysts' expectations.
He added that if earnings pick up, there will be growth in the PE multiple or price-to-earnings ratio as well.
"The backdrop is very good, just a little bit of push from credit growth... Credit growth particularly will lead to better consumption", he said.
While talking about which Indian companies can prove to be the next Nvidia and Google, during an exclusive interview with NDTV Profit, he said, "Our Nvidia could be a Zomato kind of a company."
Markets may reach new highs around Diwali, the chairman noted and added that consumption will also see an uptick in six to seven months. "By the time it is 3rd or 4th quarter you will really see impact of the earnings growth."
The expert also delved into the new GST reforms and stated that he views them as a way to create a simpler, more efficient tax system. He said he hopes that the government will have only two tax rates.
"By Indian standards, it looks pretty good. It all depends on how much ifs and buts they put in. Will they do that clean a job is the question as we have only two rates," he noted.
