The era of old legacy businesses is over and investors should look at newer segments in the market, said Ajay Srivastava, MD, Dimensions Corporate Finance Services.
In an interview to NDTV Profit, Srivastava said that good place to invest would be the segments where Indian economy is strong. He advised investors to ensure that they enter these stocks at various correction points.
“The era is over of those cement and steel and all those things, that is over. There is so much more happening in this country and abroad that you just need to move to new segments of market industries and people and promoters,” said Srivastava.
He highlighted that the commodity companies, whether it is India's pharma, CDMO company, auto, auto ancillaries, have done fine.
He said that the new order has taken over, and the mid-caps and small caps are the ones where the action is and India is strong in many areas.
Sharing his bullish view on on Electric Vehicle (EV) segment, he added “if you are not in the EV space or you are not invested there, I think you lost out a lot of money both in auto ancillaries and autos.”
Similarly, the new age stocks have done reasonably well, and given them time, he believes they will do better.
According to Srivastava, engineering, marine, electrical sectors are doing well. He believes the outlook for electrical energy is very robust. Speaking about the electrical industry, he said that the suppliers into the segment, they are doing extremely well, although their PEs are very high.
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“You have got to big data centers in India, you have got to expand, you have got to have battery storage capacities, you need that equipment, the core behind it to be put in place first. And India does not have so many companies. But those companies are raking it like nobody. So, apart from engineering, I think electrical energy supplying into the grids, transmission, electric storage, fantastic run because they have a moat, it is technology. They have an order book which is 10 years down, you can see a clear runway,” he added.
He also highlighted the strong performances of Pharma, Auto Ancillaries and Commodity sectors.
He noted that investors must eye specific stocks across sectors, and not just focus on Nifty 50 stocks.
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