V Srivatsa, EVP & Fund Manager, UTI MF in an interview to CNBC-TV18 shared his views on portfolio preferences.
The house is upbeat on the pharma space and thinks it is more insulated from US risks compared to the IT space.
Currently, their holdings are scattered over 6-7 stocks. Some are stocks that do not have any USFDA issues with good growth visibility. There are also stocks in the midst of FDA issues but hopes are that we will find a resolution over 2-3 quarters, says Srivatsa.
Pharma remains a secular growth story over the next 3-5 years with very attractive valuations. So they would hold on to their bets even though the sector did not do well over the last six months.
The house is also upbeat on tyre sector and biggest advantage for the sector has been reduction of 40-50 percent in the Chinese imports post demonetisation. Prices too have improved. So, all this bodes well for margins and growth for the sector over the next 12-18 months. Valuations here are also attractive.
“The tyre industry is getting disciplined and we see structural growth ahead over 3-5 years,” says Srivatsa, adding that it is attractive option to stay in tyres over the medium to longer term.
Meanwhile, consolidation in the banking space is also likely because there are lot of regional banks without a clear ownership, which could be good candidates for big banks. The regional banks have a good franchise in the niche segment they operate in.
For the entire interview, watch video
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