“If you probably look at a lot of management commentaries post the GST rationalisation that has happened, companies like Maruti, companies like Hyundai India have clearly indicated that where they had forecasted a negative volume growth before the GST rationalisation kicked in, they are now looking at a very positive volume growth. So, anywhere between 6% to 10% in terms of positive volumes being played out,” said Mayuresh Joshi in an interview to ET Now.
He added that once the Shradh season concludes and GST rates take effect from the 22nd, demand recovery should be visible. “As numbers start kicking in, the sector will still remain in focus. So, we continue our holdings on stocks like Hyundai and Maruti in the four-wheeler pack and TVS Motor in the two-wheeler pack,” Joshi said.
Auto ancillaries, he noted, could be the real outperformers. “Auto ancs as a space is something that we are looking at this juncture. A few stocks that we like in Marketsmith India are stocks like SJS, as an example, where our belief is that the content per vehicle will be significantly higher. Uno Minda is one more stock which might actually be a trigger for earnings growth going forward,” Joshi explained.
Diagnostics: A Dark Horse in Krsnaa Diagnostics
Turning to the diagnostics sector, Joshi highlighted the structural growth potential, especially for standalone nationwide players. “Our own sense is that the kind of openings that they have probably done in terms of their labs, the ROCE has obviously remained subdued. But as these labs achieve maturity over the next 12 to 18 months, the kind of incremental additions can be significant,” he said, singling out Krsnaa Diagnostics as a potential dark horse.
Dr Lal PathLabs, with its healthy balance sheet and expansion plans, also remains well-placed. “The standalone diagnostic chains with a nationwide presence should continue doing well in my opinion,” he said.
Quick Commerce: Innovation Amid Expensive Valuations
In the quick commerce space, Joshi acknowledged both the growing consumer habit and the competitive challenges. “They are tempting us to even order more, so that is the whole take that is probably expected to take place in the landscape,” he quipped.He pointed out that backend strength and infrastructure would be decisive. “The dynamics in terms of EBITDA and bottom line should also positively change with better volumes coming through. However, the only issue that I have is prices have moved a bit too much, valuations are way, way, way too expensive,” Joshi warned.Read more: This smallcap stock jumps 40% in just 5 trading sessions. Should you book profits?
Power Financiers: Long-Term Role Intact
The recent movement in PFC and REC stocks has also caught attention, and Joshi remains optimistic on the segment. “Over the next 10 years, the kind of capex that will be required in terms of all the projects that the central government is probably planning when it comes to renewables, you are going to need massive investments expected to come through,” he said.
He added that both PFC and REC are expected to play a “key and pivotal role” in funding these projects. “The longer-term picture is probably very robust, and they will play a key and a pivotal role. Obviously, let us not forget the dividend yield that both these stocks have to offer,” Joshi concluded.
as a Reliable and Trusted News Source