Latest news with #SandipSabharwal
Economic Times
16-06-2025
- Business
- Economic Times
Global tensions may hit aviation in short-term, but IndiGo remains a strong pick: Sandip Sabharwal
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "I think this sale also is likely to be that of Reliance which was left off last week. Now they do not get 2200 crores, they get overall I think around 10,000 odd crores and they have huge debt so they can just use it to repay the debt. And in terms of news flow, we do not really need more news flow coming out of Reliance, we actually need them to deliver on the new investments and profitability from those investments and generate some cash flows," says Sandip Sabharwal , so much because the performance of these companies has been very volatile and the growth which was expected out of most of these companies has not actually played out both in terms of the parameters which most analysts measure to ascribe value as well as the profitability growth. So, insurance has been a sector which was supposed to be sunrise and supposed to do very well, but the delivery is not as great. So, typically, I am not looking at this sector at this point of of all, the global CEO has resigned, the India CEO has not resigned, so that is something we need to be cognisant of. So, there is no direct impact on Indian operations at this point of time. Secondly, as far as performance goes, the performance has been significantly languishing. The entire footwear segment has been going through a deep slowdown for the last three years which is reflected not only in the performance of Bata, but other companies which are listed on the footwear space. And there is a belief that many D2C brands, etc, are taking away market share that is why these companies are not growing, but if we track the raw material suppliers to these companies also, that also reflects that the slowdown is for this is also in a way reflective of what is happening in the overall consumer sector. But on the footwear side, it has been more drastic. There should be some consumer revival this year because of lower inflation, lower interest rates, lower tax rates, etc, and how that percolates down to the overall consumer sector and the footwear sector will determine how the stock will go. You rightly said that it is near 52-week low, so most of the negatives seem to be in the price. But whether volume growth and value growth will come back that will determine how the stock will do, otherwise it will continue to be in a range.I think this sale also is likely to be that of Reliance which was left off last week. Now they do not get 2200 crores, they get overall I think around 10,000 odd crores and they have huge debt so they can just use it to repay the debt. And in terms of news flow, we do not really need more news flow coming out of Reliance, we actually need them to deliver on the new investments and profitability from those investments and generate some cash flows. So, if they do that, then we will see another rerating cycle. In any case, the stock has done well lately and should do well because we should see a good earning cycle over the next two years. How much the new ventures will deliver in terms of profitability will determine how much better the stock can the near term, there is a possibility there could be a further decline because some of the western aircraft routes remain disruptive, so that could impact some aviation traffic. Some aviation traffic from international passengers could also get disrupted because of the various conflicts which are going on. But it is a very strong company with a base which is unlikely to be disruptive. So, such corrections will only give opportunities to long-term investors to buy. The extent of the correction and how long it lasts will depend on how long the entire conflict, etc, lasts. But overall, next 8-10 days we should see some settling down and to that extent that give opportunities in InterGlobe Aviation also.
Time of India
16-06-2025
- Business
- Time of India
Global tensions may hit aviation in short-term, but IndiGo remains a strong pick: Sandip Sabharwal
"I think this sale also is likely to be that of Reliance which was left off last week. Now they do not get 2200 crores, they get overall I think around 10,000 odd crores and they have huge debt so they can just use it to repay the debt. And in terms of news flow, we do not really need more news flow coming out of Reliance, we actually need them to deliver on the new investments and profitability from those investments and generate some cash flows," says Sandip Sabharwal , You are not a fan of insurance plays, are you? Sandip Sabharwal: Not so much because the performance of these companies has been very volatile and the growth which was expected out of most of these companies has not actually played out both in terms of the parameters which most analysts measure to ascribe value as well as the profitability growth. So, insurance has been a sector which was supposed to be sunrise and supposed to do very well, but the delivery is not as great. So, typically, I am not looking at this sector at this point of time. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: 1 simple trick to get all TV channels Techno Mag Learn More Undo Also, help us with your take on Bata India because the stock has been hammered in the trade for quite some time now and especially post the earnings which was indeed a dismal set and in the latest some media reports suggest that CEO, Sandeep Kataria, resigns after five years. So, the official communication is still awaited, but just on this news flow if you have any take and also on the valuations because the stock is already near to its 52-week low. Give us some sense that how do you see Bata India? Sandip Sabharwal: First of all, the global CEO has resigned, the India CEO has not resigned, so that is something we need to be cognisant of. So, there is no direct impact on Indian operations at this point of time. Secondly, as far as performance goes, the performance has been significantly languishing. The entire footwear segment has been going through a deep slowdown for the last three years which is reflected not only in the performance of Bata, but other companies which are listed on the footwear space. And there is a belief that many D2C brands, etc, are taking away market share that is why these companies are not growing, but if we track the raw material suppliers to these companies also, that also reflects that the slowdown is for real. Now, this is also in a way reflective of what is happening in the overall consumer sector. But on the footwear side, it has been more drastic. There should be some consumer revival this year because of lower inflation, lower interest rates, lower tax rates, etc, and how that percolates down to the overall consumer sector and the footwear sector will determine how the stock will go. You rightly said that it is near 52-week low, so most of the negatives seem to be in the price. But whether volume growth and value growth will come back that will determine how the stock will do, otherwise it will continue to be in a range. Live Events What is your take on whether now Reliance can finally be the counter wherein you can see some big announcements coming in in terms of where they will deploy this Rs 2200 odd crore from the stake sale of Asian Paints pouring in. Sandip Sabharwal: I think this sale also is likely to be that of Reliance which was left off last week. Now they do not get 2200 crores, they get overall I think around 10,000 odd crores and they have huge debt so they can just use it to repay the debt. And in terms of news flow, we do not really need more news flow coming out of Reliance, we actually need them to deliver on the new investments and profitability from those investments and generate some cash flows. So, if they do that, then we will see another rerating cycle. In any case, the stock has done well lately and should do well because we should see a good earning cycle over the next two years. How much the new ventures will deliver in terms of profitability will determine how much better the stock can do. You had a knee-jerk reaction I guess or call it the overall market weakness on Friday when InterGlobe aviation fell about 5% at the session lows, recovered a little bit, was still down about 3.5% on lows, perhaps a reaction to that very unfortunate Air India incident. But do you sense A) that there could be a further decline in the stock and if there should be a further decline, should it be bought? Sandip Sabharwal: In the near term, there is a possibility there could be a further decline because some of the western aircraft routes remain disruptive, so that could impact some aviation traffic. Some aviation traffic from international passengers could also get disrupted because of the various conflicts which are going on. But it is a very strong company with a base which is unlikely to be disruptive. So, such corrections will only give opportunities to long-term investors to buy. The extent of the correction and how long it lasts will depend on how long the entire conflict, etc, lasts. But overall, next 8-10 days we should see some settling down and to that extent that give opportunities in InterGlobe Aviation also.
Economic Times
16-06-2025
- Business
- Economic Times
Volatility ahead, but oil spike from low base not inflationary yet: Sandip Sabharwal
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "I would think that the market reaction show that the markets believe at this stage that the impact will be limited. It could be limited. It could have some more impact, but I do not think it will have a lasting impact. So, as an investment strategy any corrections are only buying opportunities," says Sandip Sabharwal , Sabharwal: Well, on the ground the market reactions both from the Israeli markets as well as Asian markets today reflect that people are taking this in their stride. We need to be somewhat weary because the conflict just started three-four days back and it could potentially last for longer and the actual repercussions will also need to be seen on the ground over the next one week. So, the best guess could be that it could prolong to around 10 days and to that extent it could create more volatility. Now, directionally, as far as macros go, as we have been discussing in the past, India is pretty well placed on most crude might have spiked 10%, but then it spiked 10-12% but it spiked from extremely depressed levels, like it had been continuously falling for months and to that extent the $72-73 barrel rate is not really either inflation creating or disruptive. But if it goes to 85-90 because of whatever reason, then the impact could be there. So, making estimates on how this crude spike will affect Indian inflation, CAD, etc, just on a few days movement I think that makes little overall, I would think that the market reaction show that the markets believe at this stage that the impact will be limited. It could be limited. It could have some more impact, but I do not think it will have a lasting impact. So, as an investment strategy any corrections are only buying Sabharwal: That will only happen if the Strait of Hormuz gets blocked. Otherwise, globally oil is very well supplied at this stage and there is no real shortage. So, the major spikes would typically happen if there is a real shortage and on top of that you get disruptions. So, speculating if it will go to 85-90 or if this entire conflict dies down in 10 days, whether it will fall back to 60, we do not really know. So, we will take a better bet or evaluate it further maybe after a it will be more of domestic oriented sectors like financial, banks, NBFCs, industrials which could include capital good companies, infrastructure companies, or on a reasonable correction even defence companies because they have not really corrected and this conflict is also only creating an upside bias for those stocks. So, then, at this point of time tough to find value, but eventually we could, and so these would broadly be sectors and then, if at all there is a broader sell off, then we could find opportunities in other sectors Sun Pharma is a stock we held for a very long time, but we have now exited last month because of the company's increased expenditure on launching some products, etc, and some slowdown in some key products which we think could slow down earnings growth for the next 12 to 15 months. Now, this Halol project is very strange actually because they have been trying to resolve it for so long and it keeps on coming up under the scanner. So, I am not really sure what and why it happens because all these large companies have such key people to look at these aspects and they should actually not be failing any of their FDA inspections, but they regularly keep on failing. So, very tough to say. But it is a key facility I think for them, so there will be some impact.
Time of India
09-06-2025
- Business
- Time of India
RBI's bold rate cut sets stage for market rally: Sandip Sabharwal
"I think most of the MFI-focused companies are trading at somewhat distressed valuations. And there were two comments, specifically, one that the RBI has clearly stated that they see easing stress on the unsecured loan book, so that is overall good for the financial sector, especially for NBFC and more specifically for MFIs," says Sandip Sabharwal , Where you see the markets headed today, the kind of fillip that we have seen on the Nifty on Friday, do you believe that is sustainable today and the sectors that have been leading over the course of last week, do you believe they will continue to lead this week as well? Sandip Sabharwal: Yes, I think so, because the RBI's actions were quite significant. And in fact, many other sectors like auto would also have participated much more, because they are very strong beneficiaries of the easing equity and rate cut cycle, but for the rare magnets issue. Otherwise, the autos would have done much better than what they did on Friday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bank Owned Properties For Sale In Bukit Batu (Prices May Surprise You) Foreclosed Homes | Search ads Search Now Undo And if that sector remains subdued due to concerns around these supplies and apparent shutdowns, etc, so at that time you could get opportunities to buy these stocks. Otherwise, what RBI has delivered combined with the kind of tax breaks which the government has given for the middle class this year, higher government spending, overall lower inflation , so it is a perfect combination for revival in economic growth and as that plays out, markets should also do well. The one point that I wanted to discuss is that this big bazooka that they have given, I mean, not just the policy rate cut, but even for the MFI sector, because this is one space within financials which did have quite a fair bit of stress. Tell me, how does this help the MFI sector? And would you be an investor here at all? Sandip Sabharwal: Yes, I think most of the MFI-focused companies are trading at somewhat distressed valuations. And there were two comments, specifically, one that the RBI has clearly stated that they see easing stress on the unsecured loan book, so that is overall good for the financial sector, especially for NBFC and more specifically for MFIs, although there would be some concerns related to some state government bringing out new laws, etc, where some specific company could get impacted, so that has to be more minutely analysed. But that comment combined with the fact that MFI lenders have the ability to diversify into other segments and still retain the MFI categorisation, I think that is a significant positive, because then risk can be maintained better in the balance sheet. So, overall, it is quite positive for the MFI sector, even for the gold lenders where the norms have been eased. So, something has been given to everyone. Live Events If you can just highlight some of your top favourites within the financial space. Well, of course, it is not just the MFIs, the gold financers, it is actually great news for many of these stocks, but which are your top bets within the financial space? Sandip Sabharwal: The larger bank can continue to do well, which include ICICI, HDFC, Axis, Kotak, etc. Some of the PSU banks could see a revival. So, because of the sheer underperformance, we have actually recently added into SBI also in our portfolios. The other part which could benefit, obviously the NBFCs benefit much more in a significant easing cycle than the banks, so NBFCs people have a wide choice like Manappuram, L&T Finance, Mahindra Financial, Bajaj Finance, etc, among the NBFCs. But then there are others also which could benefit. So, investors have a wide choice. But overall, for the NBFC sector, this what RBI has been doing over the last few months is a much more significant positive than banks per se because most large banks have 40-45% CASA deposits where the costing does not reduce so much immediately and it is more or less fixed, although most banks have cut rates by 25 basis points, but for NBFCs which tend to be bulk borrows, significant monetary easing is much more positive. The realty pack, where is it that you find comfort to buy a fresh or add-in or even some of the HFCs, for instance, maybe that is a better play. Sandip Sabharwal: I like diversified NBFCs better. So, I would focus on those because only focused housing finance companies will continue to face more and more margin pressures as the liquidity eases. So, it is better to be in the diversified space. On the real estate sector, obviously this benefits the real estate sector. But as of now, I am not finding comfort in buying into any of these real estate companies at these valuations because the run-ups in most in the near term has been very substantial be it the market leader something like DLF already valued from 600 odd to 850, 880 something, so the rallies over the last one or two months in most of the real estate counter has been so significant. It is tough to find value. But on correction, we could still evaluate. Where both the companies will actually see what they can do best. But it is a big issue that is now emerging for the auto companies specifically with the shortage of critical rare earth magnets rather coming in from China. What is your sense that how severe this could actually impact the Indian auto industry and other sectors as well, given the fact we have a lot of reliability on China when it comes to select magnets? Sandip Sabharwal: So, there is a lot of news to go on where the impacts could be. The direct impact is more on the auto side immediately but apparently be going to a electronics, etc. So, now it will depend on how fast. So, it is not a question of supply. The supply is there, the supply is not being given, so that is the issue. So, whether it will get resolved or not, we do not know. Overnight there has been some news flow that China has approved supplies to some European and US customers. So, the point is, is India going to be singled out or is this issue going to be resolved? So, there are too many moving pieces. So, we need to watch out for that. EVs apparently will be much more impacted. So, to that extent, companies which have bigger EV portfolio or greater reliance on EVs only or two-wheeler EV companies, etc, those might be impacted more if it does not get resolved over the next four to six months.
Economic Times
09-06-2025
- Business
- Economic Times
RBI's bold rate cut sets stage for market rally: Sandip Sabharwal
"I think most of the MFI-focused companies are trading at somewhat distressed valuations. And there were two comments, specifically, one that the RBI has clearly stated that they see easing stress on the unsecured loan book, so that is overall good for the financial sector, especially for NBFC and more specifically for MFIs," says Sandip Sabharwal, ADVERTISEMENT Where you see the markets headed today, the kind of fillip that we have seen on the Nifty on Friday, do you believe that is sustainable today and the sectors that have been leading over the course of last week, do you believe they will continue to lead this week as well? Sandip Sabharwal: Yes, I think so, because the RBI's actions were quite significant. And in fact, many other sectors like auto would also have participated much more, because they are very strong beneficiaries of the easing equity and rate cut cycle, but for the rare magnets issue. Otherwise, the autos would have done much better than what they did on Friday. And if that sector remains subdued due to concerns around these supplies and apparent shutdowns, etc, so at that time you could get opportunities to buy these stocks. Otherwise, what RBI has delivered combined with the kind of tax breaks which the government has given for the middle class this year, higher government spending, overall lower inflation, so it is a perfect combination for revival in economic growth and as that plays out, markets should also do well. The one point that I wanted to discuss is that this big bazooka that they have given, I mean, not just the policy rate cut, but even for the MFI sector, because this is one space within financials which did have quite a fair bit of stress. Tell me, how does this help the MFI sector? And would you be an investor here at all? Sandip Sabharwal: Yes, I think most of the MFI-focused companies are trading at somewhat distressed valuations. And there were two comments, specifically, one that the RBI has clearly stated that they see easing stress on the unsecured loan book, so that is overall good for the financial sector, especially for NBFC and more specifically for MFIs, although there would be some concerns related to some state government bringing out new laws, etc, where some specific company could get impacted, so that has to be more minutely analysed. But that comment combined with the fact that MFI lenders have the ability to diversify into other segments and still retain the MFI categorisation, I think that is a significant positive, because then risk can be maintained better in the balance sheet. So, overall, it is quite positive for the MFI sector, even for the gold lenders where the norms have been eased. So, something has been given to everyone. If you can just highlight some of your top favourites within the financial space. Well, of course, it is not just the MFIs, the gold financers, it is actually great news for many of these stocks, but which are your top bets within the financial space? Sandip Sabharwal: The larger bank can continue to do well, which include ICICI, HDFC, Axis, Kotak, etc. Some of the PSU banks could see a revival. So, because of the sheer underperformance, we have actually recently added into SBI also in our portfolios. ADVERTISEMENT The other part which could benefit, obviously the NBFCs benefit much more in a significant easing cycle than the banks, so NBFCs people have a wide choice like Manappuram, L&T Finance, Mahindra Financial, Bajaj Finance, etc, among the NBFCs. But then there are others also which could benefit. So, investors have a wide choice. But overall, for the NBFC sector, this what RBI has been doing over the last few months is a much more significant positive than banks per se because most large banks have 40-45% CASA deposits where the costing does not reduce so much immediately and it is more or less fixed, although most banks have cut rates by 25 basis points, but for NBFCs which tend to be bulk borrows, significant monetary easing is much more positive. ADVERTISEMENT The realty pack, where is it that you find comfort to buy a fresh or add-in or even some of the HFCs, for instance, maybe that is a better play. Sandip Sabharwal: I like diversified NBFCs better. So, I would focus on those because only focused housing finance companies will continue to face more and more margin pressures as the liquidity eases. So, it is better to be in the diversified space. On the real estate sector, obviously this benefits the real estate sector. But as of now, I am not finding comfort in buying into any of these real estate companies at these valuations because the run-ups in most in the near term has been very substantial be it the market leader something like DLF already valued from 600 odd to 850, 880 something, so the rallies over the last one or two months in most of the real estate counter has been so significant. It is tough to find value. But on correction, we could still evaluate. ADVERTISEMENT Where both the companies will actually see what they can do best. But it is a big issue that is now emerging for the auto companies specifically with the shortage of critical rare earth magnets rather coming in from China. What is your sense that how severe this could actually impact the Indian auto industry and other sectors as well, given the fact we have a lot of reliability on China when it comes to select magnets? Sandip Sabharwal: So, there is a lot of news to go on where the impacts could be. The direct impact is more on the auto side immediately but apparently be going to a electronics, etc. So, now it will depend on how fast. So, it is not a question of supply. The supply is there, the supply is not being given, so that is the issue. So, whether it will get resolved or not, we do not know. Overnight there has been some news flow that China has approved supplies to some European and US customers. So, the point is, is India going to be singled out or is this issue going to be resolved? So, there are too many moving pieces. So, we need to watch out for that. EVs apparently will be much more impacted. So, to that extent, companies which have bigger EV portfolio or greater reliance on EVs only or two-wheeler EV companies, etc, those might be impacted more if it does not get resolved over the next four to six months. ADVERTISEMENT
