earnings growth in next financial year
The next financial year is likely to be a good one for the equity markets irrespective of the economy bouncing back strongly, according to Manish Gunwani, Deputy Chief Investment Officer Equity at ICICI Prudential Mutual Fund.
cheap canada goose uk Speaking to CNBC TV18, Gunwani said that if things normalise and the one off poor shows from canada goose outlet toronto factory the heavyweights go away, there should be canada goose outlet black friday a 15 canada goose outlet sale 20 percent earnings growth in the FY18. cheap canada goose uk
Canada Goose Coats On Sale On the recent upmove in the Indian markets, he said cues were more domestic canada goose outlet shop than global as the third quarter canada goose outlet new york city earnings reported by companies turned out much better than was expected in the wake of the November note ban. Canada Goose Coats On Sale
canada goose uk outlet Gunwani said more “intra sector” themes had been observed of late, with corporate banks more favourable than retail banks, adding that corporate asset quality had reached its peak. He said that investors should look at areas where growth was a given rather than making decisions based on valuation. canada goose uk outlet
canada goose factory sale He said that the NBFC sector was somewhat a concern, given that some companies had demonstrated growth in excess of underlying potential. canada goose factory sale
canada goose black friday sale Ahead of the Reserve Bank of India monetary policy review on Wednesday, Gunwani said the canada goose black friday sale economy needed a http://www.canadagoosecanadaoutlet.com push. canada goose black friday sale
uk canada goose Below is the verbatim transcript of Manish Gunwani interview to Latha Venkatesh, Anuj Singhal, and Sonia Shenoy on CNBC TV18. uk canada goose
buy canada goose jacket cheap Sonia: It has been a really smooth run for the market up until now. It has completely disregarded all forms of cues whether global or local, what do you see as the next leg of this rally, what will it include? buy canada goose jacket cheap
A: I think the cues about domestic and global in the sense that obviously the results have been much better than what people were scared of and it has happened both at the topline and margin level, so, that is one. From a global perspective, generally emerging markets (EMs) including India tend to do well when dollar eases up a bit. If you see the dollar index, it went up to 103, it has come down to about 100. So, that correction in dollar has also been I think a very important part of the reason why the market has done well.
canadian goose jacket Latha: Earnings, it is better than the worst expectations of the market but per se there is still a lot of left to be desired. We are 17 times FY18 earnings giving a 17 percent earnings growth, so, are you comfortable buying at this level? canadian goose jacket
Canada Goose Online A: You also have to see that the market didn go anywhere on aggregate basis. The Nifty has been flat for two years, roughly pre demonetisation. I know a lot of us has been broken clocks on this, but for last three to four years, the growth didn come through. However, from the base that we have created, it definitely seems that we will have a very good year in FY18. Even if things just normalise, we are not talking of the economy bouncing back very strongly, just the one offs in a lot of these heavyweights, if they go away, you are likely to see 15 18 percent earnings growth in FY18. Canada Goose Online
Canada Goose Parka Anuj: What is the portfolio call from canada goose outlet online uk here because we have seen the market leadership again come back to consumption and private banks, would you add more weight there? Canada Goose Parka
A: Yes, definitely, but one of the more interesting aspects at this point is if you see from a valuation perspective, there is no big sector cue in the sense that now on a three years canada goose factory outlet basis, almost every large sector has gone through a period of outperformance and period of underperformance. So, when you look at which sector is away from median or mean valuations, frankly there is nothing much. So, it is canada goose outlet in usa much more bottom up at this point of time.
So, the sectors we are positive on include more intra sector themes. So, for example, in banking we like corporate banks more than retail banks at this point of time because we feel the corporate asset quality has kind of reached a peak. However, since credit growth is not really looking very strong, maybe the higher valued banks where the growth expectations are very high, they may face the risk of disappointing some people.
Sonia: The thing about the numbers this time, they are better than what the market feared. However, some of these companies like Jubilant Foodworks, Titan, etc. they still have issues which persist in terms of slower revenue business growth. How would you approach this entire space?
buy canada goose jacket A: I think consumer discretionary from a top down perspective obviously a great space because you have multi decades of growth to come. So, the P/E will always look very high. However, in general what I am saying is if you look at the Indian corporate sector, on a price to book or normalised earnings, it is cheap, but on recent RoE or recent canada goose jacket outlet earnings, it is expensive. So, the call more is canada goose outlet nyc both from a top down perspective whether the economy, what kind of recovery canada goose outlet parka it will get or you will find bottom up companies which are getting market share for example. So, their growth is not so much tied to the overall growth. However, a lot of these companies are not very cheap at this point, so, you need to probably find something where you are comfortable with the growth potential versus the valuation. buy canada goose jacket
Canada Goose Outlet Latha: I have two metal and NBFCs to ask you but first metals. Good numbers we were told from Tata Steel, seems to beat street expectations all ends up, Hindalco supported by Novelis results today. What is your sense, at these levels will you still buy industrials? Canada Goose Outlet
A: As far as metals goes, we do have some exposure. Marginal overweight is where we are broadly. I think it is canada goose outlet reviews a different cycle this time in the sense that no one is probably calling for a super cycle of demand growth but it is more a supplier rationalisation globally primarily led by China. However, even in India if you see, canada goose outlet canada the recent capacity additions in steel will be low, both last two to three years and going forward let us say three to four years. So, it is more kind of, if I take the analogy of cement, last three to four years the demand has not come because of supply discipline the stocks canada goose outlet are doing pretty okay. So, steel probably we have started that cycle and so that space looks interesting.
canada goose coats on sale Latha: NBFCs? It is a variegated space, canada goose outlet store uk there is MFIs, there is home finance, and there canada goose outlet store is the regular NBFCs. Do you still like the entire space and any one particular space that is more interesting? canada goose coats on sale
canada goose A: A lot of NBFCs tend to be in the retail space, housing and auto, and we are just getting a bit concerned on that space because what is happening is, if you see the underlying businesses, the auto industry or the property industry, there, there is a certain level of growth. However, most of the listed large players have over last many years demonstrated a growth which is in excess of the underlying industry growth. Now at some point, both these need to converge canada goose outlet uk sale and today the market share is largely in the hands of the strong guys. So, the market share gain which we saw over last four to five years, I would be wary of extrapolating that from here to March. canada goose
Anuj: The other two sectors which have underperformed, IT and pharmaceutical and you have some of them in your top list actually, likes of Infosys, HCL Technologies, Sun Pharmaceutical. Would you be topping up on these names?
A: Both these spaces look interesting to us. End of the day both these industries play to India competitive advantage in terms of well skilled labour canada goose outlet at a reasonable cost globally. So, definitely we think a lot of these companies which have kind of gone through their period of underperformance over last four to six quarters, are looking quite attractive to us especially related to the market. So, we definitely have a positive view on these spaces.
Sonia: I also wanted to discuss one sector with you which is the commercial vehicle space because over there in just a couple of days, maybe tomorrow, we will get to know more about the scrappage policy from the government and that could mean a big boost to commercial vehicle volumes. Other goose outlet canada things are also there like new emission norms which could mean newer volume growth, etc. Is this a space that you have been interested in and would you accumulate here?
cheap Canada Goose A: While it is a great way to play the India recovery theme but at this point of time canada goose outlet uk given that we have canada goose outlet online two big structural issues impacting this space, one is GST and two is Dedicated Freight Corridor (DFC) maybe three years down the line. So, to that extent, it is not our top way to play the economy at this point of time. cheap Canada Goose
Latha: Anything you will watch out from the monetary policy today, will that impact your stock picking in any fashion?
canada goose clearance sale A: I think overall while it is difficult to call one specific event, but as I have said before, basically if I look at this economy in terms of fiscal monetary and exchange rate, it definitely needs a stimulus. So, I think between a combination of these three, the Budget was very good from a macro stability angle, but canada goose outlet jackets again it was not something which could I guess spur growth in the short term. So, as a mix of maybe monetary and exchange rate policy, I think this economy definitely needs a push canada goose clearance sale.
