Latest news with #MaheshPatil
Time of India
4 days ago
- Business
- Time of India
How will midcap and smallcaps perform vis-a-vis largecaps going ahead? Mahesh Patil explains
Mahesh Patil , CIO, ABSL AMC , says in the post-Covid period, mid and small-cap companies experienced higher earnings growth compared to large-caps, fueled by increased investment and sector re-evaluation. While earnings growth has converged and valuations have corrected, mid and small-caps still offer a better long-term growth outlook, potentially attracting renewed investment despite higher valuations and risk-reward. Though you believe that further rate cuts can be a little negative for the banking space in the short term, this is generally seen to be a positive move for discretionary spending. Within that, the auto turns favourable, the sector outlook, along with that the real estate sometimes gets a push. But this time, do you believe this particular thesis will hold true? Are the valuations comfortable for the stocks to take them up? Mahesh Patil: There are two parts to it. One is urban and the other is rural. Urban is more dependent on to some extent also on interest rates because a lot of urban consumers have got mortgages and with interest rates coming down that should support over there. So, yes, clearly urban consumption can see improvement if we see more rate cuts, whether it is the mortgage sector, whether it is the auto sector. But the rural economy is also very important and there are some tailwinds there on the consumption side. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like この中毒性RPGゲームが大流行中—今すぐ無料でプレイ! BuzzDaily Winners ゲームをプレイ Undo Inflation has been trending down, so the real wages are now looking much better over there. Monsoons have been good. This year the crop output is supposed to be fairly good. All these factors one would expect the rural incomes to be better this fiscal year and that could drive rural good growth. We are also seeing commentary from a few companies coming in that direction. So, given that the outlook for some of these sectors if you talk about whether it is the auto sector, currently the outlook is still weak, we are not seeing any kind of pick up but one can really hope that in the second half after the festive season there could be a pick up over there. Valuations in some of the sectors are not necessarily cheap, but they are reasonable. We have seen this in some stocks in the sector underperforming. So there is nothing really cheap but rather reasonable valuations. It is more about the delta change. If we see the trend changing, then we could see upgrades in the earning cycle and this sector can start to outperform. But I would be more constructive on some of the sectors related to the rural economy rather than urban consumption. The grain of truth here is that small and midcap stocks have rich valuations and there is no second view about it. Yet small and midcap stocks tend to outperform and continue to get inflows. Where is this entire cohort of small and midcaps headed? Mahesh Patil: In the post Covid period, the earnings growth of the midcap and smallcap companies was much higher than the largecap or the broader market and that was one of the factors. Live Events You Might Also Like: Is IT a value buy or a contra buy now? How will NBFCs fare? Mahesh Patil answers Obviously we had seen a lot of money coming into the sector and we saw a rerating of that sector also. So, it is a combination of higher earnings growth and PE multiple expansion which led to the kind of outsized returns in the small and midcap sector. In the last nine months, we have seen that earnings growth has kind of converged a bit for the midcaps, especially if you look at it compared to the largecaps, it is more or less in line, and valuations have also corrected to some extent. But they are still expensive, especially in the midcap space. Now, the question is whether the growth in this midcap and smallcap sectors, at least the outlook over there is better than the largecaps. Post the reset that we saw this year, at least on a bottom-up basis, we are seeing that in the midcap and smallcap universe, the earnings growth is slightly better than the largecap companies. If that is the case, then while the valuations are still higher, if they are able to exhibit better growth, then one can see people moving away from mid and smallcaps. That money will start to again come back into the sector and we have seen early trends of that happening. So, I would say that while the risk-reward is better in the largecap stocks because in a market correction, any kind of a risk-off globally will provide that downside, but in a three-year, five-year view, midcap and smallcap bottom-ups will possibly still in the Indian market see a better growth outlook on domestic side and end up outperforming.
Economic Times
4 days ago
- Business
- Economic Times
How will midcap and smallcaps perform vis-a-vis largecaps going ahead? Mahesh Patil explains
Mahesh Patil of ABSL AMC suggests mid and small-cap companies may see renewed investment. Despite higher valuations, their long-term growth potential remains attractive. Rate cuts could boost urban consumption, particularly in mortgages and autos. Rural economy shows promise with better real wages and good monsoons. While auto sector outlook is weak, a post-festive season pick-up is possible. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , CIO,, says in the post-Covid period, mid and small-cap companies experienced higher earnings growth compared to large-caps, fueled by increased investment and sector re-evaluation. While earnings growth has converged and valuations have corrected, mid and small-caps still offer a better long-term growth outlook, potentially attracting renewed investment despite higher valuations and are two parts to it. One is urban and the other is rural. Urban is more dependent on to some extent also on interest rates because a lot of urban consumers have got mortgages and with interest rates coming down that should support over there. So, yes, clearly urban consumption can see improvement if we see more rate cuts, whether it is the mortgage sector, whether it is the auto sector. But the rural economy is also very important and there are some tailwinds there on the consumption has been trending down, so the real wages are now looking much better over there. Monsoons have been good. This year the crop output is supposed to be fairly good. All these factors one would expect the rural incomes to be better this fiscal year and that could drive rural good growth. We are also seeing commentary from a few companies coming in that direction. So, given that the outlook for some of these sectors if you talk about whether it is the auto sector, currently the outlook is still weak, we are not seeing any kind of pick up but one can really hope that in the second half after the festive season there could be a pick up over in some of the sectors are not necessarily cheap, but they are reasonable. We have seen this in some stocks in the sector underperforming. So there is nothing really cheap but rather reasonable valuations. It is more about the delta change. If we see the trend changing, then we could see upgrades in the earning cycle and this sector can start to outperform. But I would be more constructive on some of the sectors related to the rural economy rather than urban the post Covid period, the earnings growth of the midcap and smallcap companies was much higher than the largecap or the broader market and that was one of the we had seen a lot of money coming into the sector and we saw a rerating of that sector also. So, it is a combination of higher earnings growth and PE multiple expansion which led to the kind of outsized returns in the small and midcap sector. In the last nine months, we have seen that earnings growth has kind of converged a bit for the midcaps, especially if you look at it compared to the largecaps, it is more or less in line, and valuations have also corrected to some extent. But they are still expensive, especially in the midcap the question is whether the growth in this midcap and smallcap sectors, at least the outlook over there is better than the largecaps. Post the reset that we saw this year, at least on a bottom-up basis, we are seeing that in the midcap and smallcap universe, the earnings growth is slightly better than the largecap companies. If that is the case, then while the valuations are still higher, if they are able to exhibit better growth, then one can see people moving away from mid and smallcaps. That money will start to again come back into the sector and we have seen early trends of that I would say that while the risk-reward is better in the largecap stocks because in a market correction, any kind of a risk-off globally will provide that downside, but in a three-year, five-year view, midcap and smallcap bottom-ups will possibly still in the Indian market see a better growth outlook on domestic side and end up outperforming.
Time of India
16-05-2025
- Business
- Time of India
Investor interest in defence stocks soars amid India-Pak military conflict
Mumbai: The India-Pakistan military conflict has reignited investor interest in some of the country's largest defence companies. Shares of Cochin Shipyard , Bharat Dynamics , Mazagon Dock Shipbuilders , and Paras Defence and Space Technologies surged between 10% and 35% since April 22-when the terrorist attack in Pahalgam happened, leading to the fighting between India and Pakistan. Nifty India Defence index went up nearly 13% as investors bet that the government may look to boost defence spending again. "Post the recent cross-border tension between India and Pakistan, defence stocks moved in anticipation that India will have to not only replenish its inventory of equipment but also order new ones to keep up its technological edge," said Mahesh Patil, CIO, Aditya Birla Sun Life AMC . "Owing to this, the likelihood of an increase in defence budget could rise faster over the next few years. In addition, it could also open an opportunity for India to export some of the equipment." Analysts said defence companies have enough on their plates. Antique Stock Broking said between FY22 and FY25, the Defence Acquisition Council (DAC) cleared military procurements worth ₹8.45 lakh crore, which is 3.3 times the value approved three years ago. The brokerage said these approvals are expected to convert into actual orders and business opportunities by FY26 and FY27. Live Events Agencies The government's focus on the sector resulted in one of the strongest rallies in shares of defence companies, with the Nifty Defence index shooting up about 350% between July 2022 and July 2024, when these shares peaked out. Subsequently, the index fell 38% till February-end amid the risk-off sentiment in Indian equities that hit the best performers in the previous years the most. Though the sector prospects remain strong, fund managers are wary about the pace of the rebound in these shares. Agencies "While the long-term structural opportunity in the sector remains intact, there is a disparity between current elevated levels and short-term fundamentals," said Patil. Umeshkumar Mehta, CIO, Samco Mutual Fund, said better visibility on the government's focus on the sector is keeping the valuations elevated for the sector. "In the near term, there might be a sharp elevation in terms of stock prices, but in the longer term, the sector is bound to deliver earnings growth considering the focus of the government in the sector," said Mehta. Antique continues to be positive on Mazagon Dock and Garden Reach Shipbuilders & Engineers (GRSE). On Cochin Shipyard , it said, "The stock price outlook for Cochin Shipyard is closely tied to the ordering of an aircraft carrier (IAC-II) on which there is lack of consensus over the urgency and size of the vessel, driving us to temper our stance on the stock."
Economic Times
16-05-2025
- Business
- Economic Times
Investor interest in defence stocks soars amid India-Pak military conflict
Renewed India-Pakistan tensions have sparked investor interest in Indian defence stocks, with companies like Cochin Shipyard and Bharat Dynamics seeing significant gains. Anticipation of increased defence spending and potential export opportunities are driving this surge. While long-term prospects remain strong, some fund managers caution about the current elevated valuations and the pace of the rebound. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: The India-Pakistan military conflict has reignited investor interest in some of the country's largest defence of Cochin Shipyard Mazagon Dock Shipbuilders , and Paras Defence and Space Technologies surged between 10% and 35% since April 22-when the terrorist attack in Pahalgam happened, leading to the fighting between India and Pakistan. Nifty India Defence index went up nearly 13% as investors bet that the government may look to boost defence spending again."Post the recent cross-border tension between India and Pakistan, defence stocks moved in anticipation that India will have to not only replenish its inventory of equipment but also order new ones to keep up its technological edge," said Mahesh Patil, CIO, Aditya Birla Sun Life AMC "Owing to this, the likelihood of an increase in defence budget could rise faster over the next few years. In addition, it could also open an opportunity for India to export some of the equipment."Analysts said defence companies have enough on their plates. Antique Stock Broking said between FY22 and FY25, the Defence Acquisition Council (DAC) cleared military procurements worth ₹8.45 lakh crore, which is 3.3 times the value approved three years ago. The brokerage said these approvals are expected to convert into actual orders and business opportunities by FY26 and government's focus on the sector resulted in one of the strongest rallies in shares of defence companies, with the Nifty Defence index shooting up about 350% between July 2022 and July 2024, when these shares peaked out. Subsequently, the index fell 38% till February-end amid the risk-off sentiment in Indian equities that hit the best performers in the previous years the the sector prospects remain strong, fund managers are wary about the pace of the rebound in these shares."While the long-term structural opportunity in the sector remains intact, there is a disparity between current elevated levels and short-term fundamentals," said Patil. Umeshkumar Mehta, CIO, Samco Mutual Fund, said better visibility on the government's focus on the sector is keeping the valuations elevated for the sector."In the near term, there might be a sharp elevation in terms of stock prices, but in the longer term, the sector is bound to deliver earnings growth considering the focus of the government in the sector," said continues to be positive on Mazagon Dock and Garden Reach Shipbuilders & Engineers (GRSE). On Cochin Shipyard , it said, "The stock price outlook for Cochin Shipyard is closely tied to the ordering of an aircraft carrier (IAC-II) on which there is lack of consensus over the urgency and size of the vessel, driving us to temper our stance on the stock."
Time of India
12-05-2025
- General
- Time of India
15 godowns gutted in fire at village in Thane district; no casualty
At least 15 godowns, some of them containing petroleum products, were gutted in a fire that broke out in a village in Maharashtra's Thane district in the wee hours of Monday, an official said. There was no report of casualty in the blaze that erupted around 3 am at Wadpe village in Bhiwandi, said Mahesh Patil, a fire official from the Bhiwandi Nizampur Municipal Corporation (BNMC). #Operation Sindoor India responds to Pak's ceasefire violation; All that happened India-Pakistan ceasefire reactions: Who said what Punjab's hopes for normalcy dimmed by fresh violations He said three fire engines were pressed into service, and they brought the blaze under control by 9 am, and the cooling operations were underway. He said the blaze erupted at one godown and spread to the others. 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The official said petroleum and healthcare products, cosmetics and cloth, among other items, were stored in the godowns. Flames could be spotted from a distance, and a foul smell emanated because of the burning of petroleum products, another official said. Live Events According to sources, the presence of petroleum products had aggravated the situation.
