In a wide-ranging interaction with ET Now, Damani shared his views on the GLP-1 opportunity, India’s long-term growth story, the infrastructure trade, and why he believes equities — not gold — remain the best bet for long-term investors.
GLP-1 is a muscular opportunity: Look beyond just drug makers
With GLP-1 weight-loss and diabetes drugs becoming a crowded trade globally, Damani said the opportunity is too large to ignore.
“It is such an enormous opportunity,” he said, pointing out that investors should not only focus on generic pharmaceutical players but also:
- Companies manufacturing GLP-1 delivery pens
- Firms with strong distribution networks
- Patent filers and early movers
- CDMO players with US FDA-approved plants
Damani added that falling prices in the US could unlock massive emerging market demand. Beyond the GLP-1 theme, he said the broader Indian pharma sector remains in “robust shape,” backed by optimism, capex and global positioning.
“India has become the medicine shop of the world,” he remarked.
CDMOs and US manufacturing could benefit from tariff hedging
Damani highlighted that companies with manufacturing capabilities in the US could gain if global firms look to hedge tariff risks by outsourcing locally.
He noted that supply chain shifts are real and structural, not temporary.“Three words — localise, localise, localise,” he said, adding that globalisation may take a backseat as nations secure their own supply chains.
L&T selloff a ‘passing squall’? Infra is the anti-AI trade
On the sharp reaction in Larsen & Toubro amid Middle East tensions, Damani termed the weakness a “passing squall.”
He believes infrastructure companies may actually benefit if global growth slows and governments boost capital expenditure.
“If the economy goes into a mild recession, governments will pump-prime through capex,” he said.
According to him, infrastructure remains an “anti-AI trade” — a sector unlikely to be disrupted by artificial intelligence and one that could see profit pools expanding.
He called the recent dip “perhaps a good buying opportunity.”
Next profit pools: Pharma and infrastructure lead
Damani avoids macro predictions but said profit pools are clearly visible in:
- Pharmaceuticals
- Infrastructure
- Domestic manufacturing
He reiterated his long-standing bullish stance on India.
“The best day to invest in India was July 1991 when liberalisation happened. The second best day is today,” he said, referencing reforms under former Prime Minister Manmohan Singh.
Despite the BSE Sensex rising from 5,000 to 80,000 over decades, he argued that structural growth opportunities remain intact.
Gold vs equities: Damani’s ‘controversial’ view
Damani offered a blunt take on gold’s rally.
While gold has surged to record levels, he noted that its long-term compounded annual growth rate (CAGR) since 1980 remains modest compared to equities.
“If you bought one ounce of gold in 1980, you still have one ounce. If you bought shares of Infosys, you would have wealth plus dividends,” he said.
He cited long-term wealth creators like Infosys, Bharat Electronics, and even global names such as Coca-Cola to highlight the compounding power of equities.
“Gold may make you popular at cocktail parties, but it won’t make you serious money,” he said, urging young Indian investors to stick to SIPs and quality businesses.
Trade deals and supply chain reset: A structural shift
On India’s evolving trade landscape, Damani described recent agreements — especially with the UK and EU — as benchmark developments that could benefit commodity and manufacturing sectors.
However, he stopped short of equating them with the transformative impact of 1991 reforms.
On geopolitics and supply chains, he said global firms are increasingly adopting:
- Nearshoring
- Friendshoring
- Domestic manufacturing
Rare earths, steel, and aluminium are among sectors likely to see localisation drive investments.
Bottom line: Stay invested, think long term
Damani’s core message remains consistent:
- Stay invested in quality businesses
- Ignore short-term volatility
- Focus on sectors with visible profit pools
- Prioritise equities over speculative assets
“India is at the right place, right time, right continent,” he said.
For long-term investors, he believes the opportunity set over the next 10–20 years remains “infinitely greater” than what the country has already witnessed.