We are at the cusp of a very strong upcycle in earnings; 5 big themes to invest in: Paras Bothra

Paras Bothra says: The most important thing at present is picking up companies at the right value and with a sectoral tailwind..

Healthcare again is also going to be big; technology disruption, manufacturing, exports are the broad themes where there is structural tailwind and probably we will be picking and choosing from those sectors and themes...

There are certain pockets wherein you are seeing that some kind of cyclical downturn is visible, maybe in the rural space or the consumer durable space or for that matter in the chemical space, but overall if you look at things are looking very bright and some of the segments have done exceptionally well.. Our sense is that this momentum will continue going forward as well because if you look at maybe in 2024 interest rates are about to peak out and once they come down, that is going to be a key positive and plus, the most important imponderable probably is going to be the elections...

Second is picking up companies where there is more on solid earnings or you can say, it this way that the momentum in terms of earnings are clearly visible and there is a structural tailwind in the sectors with able management and there is some kind of competitive advantage with the company where the EVS spread is also quite good..

We thought of themes and sectors which are going to be there, say the visibility is there from a five-year perspective and some of the themes continue to be there for last many years as well formalisation of economy or financialisation of savings or the consumer discretionary probably which has taken a back seat for last couple of quarters and years that is going to come up because the demographic profile of India is such that that need to play out over a period of time and nobody can stop it...

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