Power, Real Estate, Renewables Among Sectors To Watch Out For In 2025, Says JPMorgan's Sanjay Mookim

Conventional power, renewable energy and real estate are among the sectors to watch out in 2025, according to Sanjay Mookim, head of India research at JPMorgan.

"In 2025, we can talk of cyclical stories. So, we are going to see a power upcycle, with the seasonal demand picking up in April, May and June," Mookim said, during a televised interview with NDTV Profit.

This will lead to power demand and prices going up, which is predictable, he said, adding that this happens in summer every year.

The equity analyst is also bullish on real estate, as he expects an uptick in pre-launches in key markets in Mumbai following a lull seen in 2024. "We expect real estate demand to recover. The pre-launches have been weak because of variety of reasons, such as elections."

The momentum in the real estate sector would pick up again, and that should drive "renewed interest in real estate stocks", he said.

Mookim, while sharing his bullish views on renewable energy sector, said the kind of investment momentum being seeing in some of the renewable spaces in India is "very strong".

If storage solution segment starts to deliver, then the "whole game changes really in terms of energy generation and renewables in India", he noted.

Among other sectors, the analyst said manufacturing is "working", but it is "more to be approached bottom-up". There are no undiscovered stock in this segment, and one has to look for growth avenues, he added.

While commenting on the banking sector, Mookim said there could be "peaking of credit costs" later in 2025. But one is not confident about this at the moment, he said. "We'll see how this plays out...Because expectations for banks are not very high at the moment."

On being asked whether one should bet on mainstream players or ancillaries while focusing on the promising sectors, Mookim said, "Direct companies are always the most leveraged to any theme." However, if one can find something cheaper in an associated business, then they should look into it, he added.

"For example, in building materials (segment), I don't think there is any cheap building material stock. But if you can find, please look into it. However, the core theme is that real estate construction and real estate pre launches should start to improve hereon," he further said.