Moneycontrol
Sep 06, 2017 12:33 PM IST | Source: CNBC-TV18

Blue Star added to midcap portfolio; like CanFin Homes, Kajaria: MoS' Sonthalia

Manish Sonthalia, Head Equities-PMS, Motilal Oswal Asset Management said it has always been our strategy to buy into select few 20-25 names for the long term.

Manish Sonthalia, Head Equities-PMS, Motilal Oswal Asset Management said it has always been our strategy to buy into select few 20-25 names for the long term.

The house avoids buying into cyclicals. However, a few changes have been made to the midcap portfolio to buy few consumer durable names, where traction is expected going forward, says Sonthalia.

One of the names added to the midcap portfolio has been Blue Star.

Sharing the rationale behind including CanFin Homes, Mahanagar Gas, Kajaria Ceramics etc in the Opportunity portfolio, Sonthalia says it’s no brainer that housing finance business is going to be much larger than it is today. The entire theme of the India Opportunities Portfolio is that we want to identify midcaps, because today’s midcaps will become largecaps of tomorrow, adding that picture for all the above mentioned names is very big from next 5-10 year point of view.

Manish Sonthalia
Manish Sonthalia
VP & Fund Manager|Motilal Oswal Mutual Fund

    Moreover, government is focused on converting liquid fuel economy to a gas economy, so gas companies will do well. Kajaria Ceramics has 10 percent market share in organized space.

    When asked if he would look at playing the affordable housing theme via real estate stocks he said there would be chance of that but the sector is plagued with many issues including corporate governance, so one will have to be selective.

    For the entire discussion, watch video
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