Speaking to ET Now, Anand said: “There are different pockets in the speciality chemical space that India is very strong in, and it provides a very interesting foundation for long-term growth as Indian firms become integral to global supply chains.”
He added that while Chinese dumping and weak demand have kept margins under pressure, structural shifts such as global de-risking from China and cost competitiveness will benefit Indian manufacturers once the current slump subsides.
Why fertiliser stocks don’t fit IME Capital’s playbook
Anand clarified that IME Capital is avoiding the fertiliser sector due to heavy government regulation and low return ratios.
“We tend to stay away from businesses with high government interference, pricing controls, and large capital requirements,” he said.
Instead, the firm prefers high-growth, innovation-led sectors where companies can compound earnings independent of regulatory cycles.
Two-wheeler EV shift: “Too early to pick winners,” warns Anand
On the auto front, Anand struck a cautious note, particularly about two-wheeler manufacturers like TVS Motor.While the short-term outlook looks strong, he warned that the long-term profitability of electric two-wheelers (EVs) remains uncertain.
“The cozy four-player market is now turning into a six-player race with Ola and Ather entering. Profitability on EVs is currently far below that of ICE two-wheelers,” he said.
He pointed out that valuing two-wheeler companies is difficult without clear visibility on EV market share and profitability over the next five to seven years.
Auto ancillaries and passenger vehicles offer better visibility
While Anand remains cautious on two-wheelers, he is more optimistic on passenger vehicles and select auto ancillaries.
“The transition to EVs in passenger cars will be slower, and the competitive landscape more stable,” he said.
Auto component makers with low dependence on internal combustion engines could also see sustained demand through the EV transition, he added.
Structural shifts and value migration in focus
Anand sees the India-China supply chain shift as a multi-year opportunity.
“Value migration away from China — whether due to cost rationalisation, supply chain diversification, or risk mitigation — gives Indian speciality chemical players a long runway for growth,” he said.
However, he stressed that investors need to be patient until the current cyclical downturn stabilises.