Key Points
Ravi Dharamshi, CIO, ValueQuest Investment, says the election is a big risk that we are carrying for a lot of our portfolio companies which are beneficiary of the government action and too much dependence on that can be a challenge this year..
Again, as I said the theoretical risk is that the government changes, but I do not think that is going to be actually the case..
But if that was to pan out, then my portfolio is carrying a lot of risk..
So I would wait for the valuations to become so attractive in this case, where some amount of revival in growth can also lead to rerating, which is what happened post Covid, in most of the IT companies..
Large private sector banks have the right to win, which there was a case for the PSU banks probably to have a mean reversion in terms of valuation, because the cycle was favourable..
