If we draw reference from the global financial crisis (GFC) back in 2008, the popular notion was that capex heavy sectors could do well post the crisis considering the fact that capital is cheap but that did not happen back then and is unlikely to happen in 2020, Prateek Agrawal, Business Head & CIO, ASK Investment Managers Ltd said in a podcast ‘D-Street Talk’ with Moneycontrol.
“If we look at the performance of CAPEX oriented business, it has not been that good as compared to businesses that are consumption-oriented, asset-light and free cash flow generating businesses did well,” he said.
Agrawal is of the view that businesses that are able to grow in a sustained manner over medium to longterm say 3-5 years horizon tend to do vastly better than other businesses and we believe that something similar could happen this time.
Consumption, chemicals, Pharma, retail, telecom and IT are some of the sectors which are likely to do well in the near future, explains Agrawal.
(Tune in to the podcast for more)
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