Still lot of opportunities in market: Shashank Khade

107 Investors following Williamson Tea. Share this News with them.

0

Like this story, share it with millions of investors on M3

Still lot of opportunities in market: Shashank Khade

Vice President of Portfolio Management Services at Kotak Securities, Shashank Khade believes that there are a lot of opportunities in the markets where valuations still look attractive, and that is where the money will flow.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

Vice President of Portfolio Management Services at Kotak Securities, Shashank Khade says that their strategy is to stay put in stock positions,  where they believe there is value.

Khade further says that there are a lot of opportunities in the markets where valuations still look attractive, and that is where the money will flow.

Excerpts from CNBC - TV18's exclusive interview with Shashank Khade:

Q: Have you got cash in hand waiting for a dip or just largely invested riding the wave?

A; In Kotak PMS, by and large we have medium to long-term investors, so normally our strategy is to stay put in positions in stocks where we believe there is value and normally we don't take aggressive cash calls at different points of time. Right now we are still invested to a very large extent and watching the market extremely carefully.

Market normally tops out with a huge amount of euphoria and somewhere we believe that we still see investors extremely cautious about these markets, rather than euphoric. These are not clearly the signs where the markets really top out, so we are staying put with most of our investments in various portfolios.

Q: What is happening with the mutual fund money? Are they expecting to see that correction coming in, you have mentioned the fact that there is no topping out but are they looking for a deeper correction perhaps because there is a lot of money but it is not coming in?

A: Any fund manager would tend to really want to invest in markets when it actually corrects because that is where the valuation comfort increases. So fund-to-fund, they would have a strategy in place on deploying the money. As I see it, pocket of investments and pocket of opportunities are there within the markets for grabs. There are a lot of opportunities where valuations still look attractive and that is where the money will tend to flow.

Q: What about pharmaceuticals? This is one sector which has staged a smart comeback over the last fortnight? Where do you stand with your money in PMS on frontline Pharma?

A: We were having an exposure in Cipla for the last one and a half years now and we are still holding on to that position in the portfolio. We have a separate lifesciences focus portfolio, which actually has most of the Indian pharma as well as MNC pharma companies. 

Q: Tea and Sugar, do you have exposures here?

A: We have a large exposure in McLeod Russel and that is where we  have been holding on for the last couple of quarters. Somewhere we believe that the tea cycle is something that one needs to really watch out and is a commodity that moves with a lag. Infact the symptoms of the way tea is behaving right now clearly shows that it has clearly bottomed out and is beginning to move up. So we have exposure to McLeod Russel and we have been holding on to this with a long-term perspective

Q: Do you like McLeod Russell because it has played a lead role in consolidation in that space; picked up a couple of large players. Do you think it is the most aggressive player in the tea space now?

A: In case we want to play tea sector, one needs to invest in the leader in the sector. McLeod actually has about 67 million kg of tea as production after the consolidation, which has happened, thanks to Williamson Tea Assam as well as Doom Dooma Tea, and of course Premium Tea. Assam Tea is clearly at the higher end within the tea segment. Next year we would tend to see some positive impact on pricing power, thanks to consolidation, which has happened. On the other hand, we expect cost rationalisation to also take place over the next couple of quarters for this particular company.