Vikas Khemani's Five-Sector Playbook And Stock Bets For India’s Next Decade

Vikas Khemani, founder of Carnelian Asset Management, is betting on five drivers of India’s growth in the next decade, with a focus on long-term investing and stock-specific conviction. Speaking to NDTV Profit, Khemani said the Indian market remains structurally strong despite geopolitical headwinds and global uncertainty.

“This year, earnings growth should come in around 13–15%, which is a robust number. Markets will likely hit new highs,” Khemani said, adding domestic liquidity support from the central bank has played a bigger role than any external macro factor in supporting sentiment.

Khemani said Carnelian’s strategy is built around five broad buckets: financial services, manufacturing, consumption, infrastructure, and services. Within these, the fund is focused on companies with long-term potential.

Among stock-specific bets, he highlighted Laurus Labs, which the fund entered at approximately Rs 300 and held through a quiet phase before it delivered strong numbers. Another stock that played out well is Newgen, which moved from Rs 1,800 to Rs 14,000 in just three quarters, he said.

“These kinds of stories take time. You need to know the business, hold your conviction, and avoid chasing momentum blindly,” Khemani said, adding the defence and EMS (electronics manufacturing services) space also offers multiyear opportunities, though growth can be lumpy.

In financials, Khemani said the fund continues to prefer select private sector banks and NBFCs, but is highly stock-specific. In manufacturing, he remains bullish across chemicals, auto components, pharmaceuticals, and defence. On consumption, he pointed to India’s rising per capita income as a long-term demand driver. Infrastructure plays in railways and airports also remain on his radar, alongside non-IT services like travel and tourism.

“You don’t need to react to every global event. If you believe in India’s structural story, you stay invested and stay patient,” he said.