HDFC Bank, IT majors, and chemical stocks: Where Aditya Shah is hunting for value right now – News Air Insight

Global markets are navigating a period of deep uncertainty — caught between Donald Trump’s tariff moves and escalating geopolitical tensions. But for Aditya Shah, founder of Hercules Advisors, the volatility is not a reason to panic. It is a reason to study harder.

“Form is temporary, class is permanent,” Shah told ET Now. “Look at good quality companies with solid businesses where stock prices have corrected — that is where the opportunity really lies.”

“The market is a prisoner to what Donald Trump will do. But short-term disruptions are not forever.” says Shah.

Stocks on Shah’s watchlist

Shah’s top conviction pick remains HDFC Bank, which he believes has seen valuations compress due to management missteps — creating an attractive entry point for long-term investors. On the banking and financials side, he is also watching the life insurance and asset management spaces closely, naming HDFC Life, LIC, Nippon AMC, and HDFC AMC as companies he likes — though he cautions that AMC stocks are not cheap right now.

In the chemical space, Shah acknowledges near-term pain. Several companies have declared force majeure and halted production amid supply chain disruptions — which will weigh on short-term earnings for names like Deepak Nitrite and Navin Fluorine. But he sees these as temporary setbacks for businesses that are structurally well-positioned.

On the pharma side, the CDMO (contract development and manufacturing) sector is also under pressure globally, but Shah is keeping a close eye on Syngene and Piramal Pharma as potential longer-term plays.

IT getting attractive for patient buyers

When it comes to IT, Shah is not expecting fireworks from the upcoming earnings season. He anticipates muted results and uncertain management commentary as companies grapple with slowing client spending and the ongoing disruption from AI. However, he argues that valuations have already de-rated significantly — with many largecap IT names now trading at P/E multiples of 10–18x and offering dividend yields of 3–4% — making them attractive for patient buyers.

“Even if the terminal growth is 1–2%, IT companies at current valuations look attractive to me. We are buyers in IT — AI is coming, but valuations adequately capture the slowdown,” says Shah.His broader message to investors: resist the urge to react to every headline, and instead focus on business quality. In Shah’s view, the current market dislocation is not a crisis — it is a clearance sale for those willing to do the homework.