Speaking to ET Now, Solanki said Trent’s growth has slipped below 20% despite management guidance of around 25% for the fiscal year. “The company was earlier operating on a 30–35% growth pedestal. With three quarters already well below guidance, achieving that number now looks extremely difficult,” he said, adding that valuations remain challenging unless the company delivers a sharp and sustained recovery in growth.
Private bank earnings decent; Axis and ICICI preferred
On the banking front, Solanki noted that earnings from large private banks were largely encouraging, supported by improving deposit and disbursal growth. Among private lenders, he continues to favour Axis Bank and ICICI Bank, while maintaining an overall preference for PSU banks within the sector.
Commenting on the market’s reaction to IndusInd Bank results, Solanki said stock price movements often diverge from fundamentals in the short term, but sector-wide trends remain supportive.
Auto cycle turns up; Two-wheelers, ancillaries lead
Solanki highlighted strong momentum across the auto sector, with growth visible in two-wheelers, passenger vehicles, and commercial vehicles. Ranking his preferences, he placed two-wheelers first, followed by auto ancillaries and commercial vehicles, noting that the CV cycle is still in its early stages. “The next two to three quarters could be very strong for commercial vehicles,” he said.
IEX rally driven by regulatory relief, volatility to persist
On the sharp rally in Indian Energy Exchange, Solanki cautioned that regulatory uncertainty remains a key overhang. With APTEL questioning the process behind market coupling rules, he expects volatility in the stock to remain elevated until legal clarity emerges.
Pharma outlook improves; GLP-1 a key trigger
Solanki remains constructive on healthcare, particularly hospitals, while expecting a gradual turnaround in the pharma manufacturing space. He pointed to upcoming GLP-1 patent expiries in large markets such as India and Brazil as a potential catalyst for the sector in early 2026, along with opportunities in complex generics.
Top sector bets for the next 12 months
Looking ahead, Solanki said his preferred themes include autos and auto ancillaries, metals amid a strong commodity cycle, defence manufacturing, healthcare, and select NBFCs. Within banking, PSU lenders remain his top choice, while stock-specific opportunities are emerging across pharma and domestic manufacturing.