Old Bridge Capital Management believes India will become a large consumer economy going forward.
“Over the next decade or longer, rural franchise will fairly become large…the decade will be about evening out of distortion (between rural population and GDP against urban counterparts) that is there and at the end of it, we will be a large consumer economy,” Kenneth Andrade, Founder & CEO of Old Bridge told CNBC-TV18 in an interview.
On Indian market, Andrade said there is no valuation comfort in most businesses. “You have to look at large opportunities…going forward, the market breadth will collapse.” Individual brilliance will sustain, he added.
Andrade highlighted how the shift from unorganised to organised businesses could be a long term concern as unorganised is currently a big employment generator. Having said that, he feels the economy will find a way out around this.
He noted the media sector is suffering lack of pricing power. Top media companies are cash positive, he said, adding incremental demand will lead to higher return on equities (RoE).
However, sectors that he is away from include pharmaceuticals, IT and financials.