Moneycontrol
Last Updated : Jan 03, 2018 12:17 PM IST | Source: CNBC-TV18

See double digit earnings growth for India Inc. by FY19: Pramod Gubbi

It is about time that the recovery in the economy which we are seeing right now should trickle down to corporate profitability improving and finally we see some a double-digit or 15 percent kind of growth at index level by FY19, says Pramod Gubbi, Ambit Capital said in an exclusive interview with CNBC-TV18.

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India markets might put up a strong show in the calendar year 2017 but the performance is unlikely to get repeated in the year 2018, but there will be a lot of stock specific opportunities.

“I don’t think that 2018 will match 2017 returns and the nature of movement will also be different which in other words means that multiples are likely to contract and earnings growth could move higher from here,” Pramod Gubbi, Ambit Capital said in an exclusive interview with CNBC-TV18.

“It is about time that the recovery in the economy which we are seeing right now should trickle down to corporate profitability improving and finally we see some a double-digit or 15 percent kind of growth at index level by FY19,” he said.

Commenting on the Budget, Gubbi said that there is a higher chance of government going for a stimulus package in the budget to improve the state of the economy as well as to create jobs.

In some ways, we have seen government acknowledging that the government will slip on the fiscal front. We do expect the government to lend a helping hand to the economy to boost job creation and growth rural sectors.

Among the stocks, Gubbi said auto sector should do well. Consumer discretionary does well in the event of a stimulus which includes sectors like retail, apparel, and jewellery.

In the cyclical, we look at names in construction, road building etc. Some of the domestic cyclical and domestic focused consumer discretionary plays should do well in 2018.
First Published on Jan 3, 2018 10:48 am
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