MC EXCLUSIVE MC Exclusive: Sunil Singhania’s top sector bets bypass obvious consumption plays

Singhania sees sees better prospects in discretionary consumption, particularly autos

Abakkus Asset Manager founder Sunil Singhania is steering clear of consumer staples even as the country’s economic and consumption outlook brighten, arguing that valuations remain stretched and growth constrained.

“Staples as a sector is still not cheap,” Singhania said in a the Wealth Formula podcast with N Mahalakshmi. “You might have a 5–10% move because people are a little shy of taking risks, but the growth there is a challenge (for listed consumer staple companies).” He pointed to slowing value growth due to low inflation, saturation in penetration, and rising competition from direct-to-consumer brands.

Instead, he sees better prospects in discretionary consumption, particularly automobiles, where GST cuts and potential interest rate transmission could spur demand. “Autos benefit the most from a 10% GST cut because it’s a high-value purchase,” Singhania said. Still, Abakkus remains underweight on autos, preferring exposure through select ancillaries and a large tractor and passenger vehicle maker.

WATCH INTERVIEW HERE: Sunil Singhania on Finding Under-Researched Stocks, Bold Calls, GST & Tariff Impact

On financials, Singhania was upbeat. “Financials of all kinds, whether fund-based or non-fund-based, we are positive—particularly our own business in wealth and asset management, which has a long way to go,” he said.

He also remains constructive on pharma, while flagging a possible sentiment hit from trade rhetoric. “There might be a near-term headwind if Trump wakes up and says he’s going to put a tariff on pharma, but I don’t think generics will get impacted that much,” he noted.
Metals, chemicals, and engineering are other areas that look attractive after corrections, in his view.

“There are some good engineering companies because of the market correction as well as export focus, and they’re getting interesting,” Singhania said.

In technology, he sees a shift from traditional IT services toward profitable new-age firms. “Normally we avoided these new-age companies, but some of them have started to turn profitable, so they start to come into our horizon,” he said.

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