Deepak Shenoy is not booking profits, rather investing a lot more. Here’s why

Elixir Equities Director, Dipan Mehta, argues that new age companies such as Zomato, Policy Bazaar, Nykaa, and Paytm are stocks of the decade of the 2030s and could be huge multibaggers over the next 5-10 years. However, these companies are still in their investment phase, which reflects in their P&L, although they are making strong efforts to get into EBITDA positive. Regarding concerns about Page's decline, Mehta suggests that a demand slump due to higher inflation and uncertainty around weather patterns may have impacted Page industries.

“We are seeing the earnings growth trajectory of India led by banks, the capital goods sector doing very well and FII inflows. In the last week or two, FYTD is up a solid $18 billion. But yet, over three years, we are a negative number. If India's GDP is growing at four times that of the rest of the world, the risk-off trade should be a big vantage point for India.”

“It is very difficult to say that whether it is a midcap or sentimentally by numbers it might look like a largecap but within the domestic consumption space, organised retail is a very good space where we have a decent allocation and organised retail shows no impact of what is happening outside India.”

I cannot talk about specific names but companies where we have seen management changes or we have seen results being below expectations, these are places where markets have been quite brutal and when they are trading at low teens or low double digit numbers, these are places where there is an interesting hunt zone.

Ambit Asset Management and Bhargav Buddhadev are bullish on mass consumption, manufacturing, and exports. Positive outlook on market share regaining, margin improvement, chemical, and consumer discretionary companies. India's growth potential remains promising. Buddhadev further says: We believe smallcaps should not be viewed through a different lens, especially now, given that several companies have also become liquid.

According to Raamdeo Agrawal, Chairman of MOFSL, pure internet companies such as Zomato, Swiggy, and PolicyBazaar can become large players in terms of profit pool. Companies like Bajaj Finance, Zerodha, and Angel One, which are traditional businesses leveraging the power of technology, are also poised for accelerated growth. Another area for growth is the real estate industry, which is showing profits after years of losses.

Steady demand, lower input costs and stable interest rates supported the performance of corporate India in the September quarter. The energy and automobiles sectors contributed the most to India Inc.’s profitability. As many as 490 companies of the Nifty 500 index reported an aggregate revenue and net profit (adjusted for extraordinary items) growth of 1% and 43%, respectively, on a y-o-y basis. Excluding the financial sector stocks, the aggregate EBITDA of 405 stocks grew 40.7% y-o-y.

At least 31 companies that have reported a double-digit earnings growth for three quarters in a row saw consistent rise in the foreign institutional holding, data analysed by ETMarkets showed.

ET looks at some of the stock recommendations by analysts of late. These stocks are expected to return between 16% and 23% as per analysts price targets.

In this episode of Business Matters, we discuss the good and not-so-great takeaways from India’s macroeconomic numbers.