Mihir Vora On Indian Stock Market: Mid- and small-cap stocks have larger headroom for growth, while stock-picking is likely to be more favourable in the broader market, according to Mihir Vora, Chief Investment Officer at TRUST Mutual Fund.
Vora told NDTV Profit that he remains positive on new-age companies in the discretionary space, even as consumption at the lower end could face some pressure from El Nino. He also flagged the possibility of high price-to-earnings ratios in precision engineering, suggesting that valuations will remain an important factor when assessing opportunities in the space.
New-Age, Discretionary Stocks Find Favour
Vora said he is positive on new-age companies in the discretionary space, pointing to the continued opportunity in businesses catering to discretionary consumption.
At the same time, he cautioned that El Nino may impact lower-end consumption, making the consumption outlook uneven across segments.
On precision engineering, Vora said the sector may see a high price-earnings ratio, highlighting the need to remain mindful of valuations even where the underlying growth opportunity remains strong.
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Stock-Picking More Favourable In Broader Market
Vora said stock-picking is more favourable in the broader market, with mid- and small-cap companies having larger headroom for growth.
The comments come against a backdrop where the broader market offers a wider universe of companies and sectors, making individual stock selection increasingly important.
NBFCs Require A Stock-Specific Approach
In the NBFC space, Vora said investors need to be more stock-specific, rather than taking a broad-based view of the sector.
His stance reflects the need to differentiate between individual NBFCs based on their respective business models and growth prospects.
Private Banks Better Positioned Than Public Sector Lenders
Vora expects private banks’ growth to be higher than that of public sector banks. However, he noted that the delta between private and public sector banks has reduced.
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Banks, he said, have shown healthy margins and valuations, indicating that the sector continues to have a relatively sound operating and valuation backdrop.
Despite this, Vora said he is not very positive about the overall banking space, suggesting that investors should remain selective within the sector.
Who Is Mihir Vora?
Mihir Vora is the Chief Investment Officer at TRUST AMC and has nearly three decades of experience in investment management across equity, fixed income, real estate and alternative investment funds.
Before joining TRUST Mutual Fund, Vora was Senior Director and Chief Investment Officer at Max Life Insurance, where he managed assets exceeding Rs 1.30 lakh crore.
He has also held senior positions at Aditya Birla Sun Life Mutual Fund, Abu Dhabi Investment Authority, HSBC Mutual Fund, ABN AMRO Mutual Fund, ICICI Prudential Mutual Fund and SBI Mutual Fund.
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