Latest news with #SushantBhansali
Time of India
a day ago
- Business
- Time of India
FMCG, consumer discretionary set for festive boost; defence remains a long-term play: Sushant Bhansali
Tired of too many ads? Remove Ads To start with, it is the PM's GST bonanza that has given a positive cheer to the market. The GST cuts are expected to spark around $13 billion in consumption, providing a strong tailwind to the FMCG sector. The move ahead of the festive season is crucial and is likely to translate into stronger volumes, better consumption, and overall positive sentiment. What is your take on the FMCG sector, considering its sideways action over the last two to three years? What specific themes within consumption do you expect to perform well, including areas previously underperforming? Considering the GST announcement is not yet official, should investors enter the market now or wait? You are positive on consumer discretionary, staples, auto, apparel, agrochemicals, and consumer durables. But what about defence and shipbuilding, considering the government's focus, including the mission Sudarshan Chakra to develop indigenous aerial defence systems by 2035? Sushant Bhansali, Ambit Asset Management, says despite short-term challenges, the FMCG and consumer discretionary sectors stand to benefit from upcoming GST cuts , especially rural-focused companies. While short-term flows into defence may be limited due to government finances, the long-term growth story remains intact. Market entry is favorable now, supported by festive season demand and improving consumption rural recovery was slower compared to urban markets, which were already performing well. Over the last two to three years, FMCG growth was primarily urban-driven, but rural penetration is now improving. Combined with the expected GST cuts around Diwali, this should accelerate recovery. The underperformance of the past two to three years could translate into stronger returns over the next 6–18 a two-pronged approach. First, rural-focused players with strong distribution networks are likely to do well in H2 of this year. Second, consumer discretionary segments, currently taxed at 28% GST, could benefit if rates drop to 18% as widely speculated. These areas should provide additional growth is a good entry point. Investors may stagger investments slightly, but waiting will not yield results. Large-caps and mid-caps are at reasonable levels for a 1–2 year horizon, and for those with a 3+ year horizon, any time is suitable. Recent global uncertainties have provided attractive entry points. With lower interest rates, tax cuts, and GST implementation ahead of Diwali and the wedding season, markets could see an upbeat turnaround and reach new remains a strong long-term bet, but short-term flows may be constrained. Government finances are under pressure, with slower direct tax growth and GST rate adjustments affecting indirect taxes. Consequently, short-term capex and investments in this sector may be limited. The long-term story, however, remains intact, and sideways movement could continue until better entry points emerge.
Time of India
6 days ago
- Business
- Time of India
PMS strategies set to outperform mutual funds in narrower market: Sushant Bhansali
In an exclusive conversation with ETMarkets, Sushant Bhansali , CEO of Ambit Asset Management on the sidelines of the APMI conference in Mumbai, said that Portfolio Management Services (PMS) are poised to outperform mutual funds in the next couple of years as market breadth narrows and only a select set of companies deliver superior earnings growth. Concentrated PMS portfolios , he noted, will be better placed to capitalise on these opportunities compared to large mutual funds, which often hold 100-plus stocks due to their size. Bhansali, who is also the Chairman of the Association of Portfolio Managers in India (APMI) board highlighted that concentrated PMS portfolios, unlike large mutual funds holding 100-plus stocks, are better positioned to capture alpha. Edited Excerpt - Kshitij Anand: Let me start off with one big question that's on everyone's mind: how will India perform in terms of alpha generation? How do you see the next few years playing out? Will we be able to mimic the performance of the past? Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If the Cat Bites You, Here's What It Really Means. Weird Cat Behavior Explained Undo Sushant Bhansali: I would say that in the last few years, alpha generation was actually very difficult because anything and everything was working. To outperform, you probably needed to take more risk—both in terms of allocations and position sizing—as well as identifying whether you were in the top 20–30% of companies in terms of earnings growth. In the next two or three years, given the current state of the economy, alpha generation will become a lot easier if you play it right. That's because only select companies will deliver higher earnings growth, while a vast majority will not. Live Events So, by both avoiding companies that won't deliver and allocating more capital to those that will, you can create immense value—similar to how things played out between 2018 and 2020. In the two to three years before COVID, within the Nifty itself, only about five to seven stocks delivered superb returns—some growing more than 30% CAGR—while the index as a whole delivered single-digit returns. I think we are in a similar cycle now. Kshitij Anand: So, portfolio rebalancing will become more important in the current circumstances? Sushant Bhansali: I would say the churn will actually be lower compared to the past. Earlier, we had to continuously move from one stock to another to capture the next high-growth opportunity. Now, with fewer such opportunities available, investors will likely stick to the names that are delivering and continue to hold them. Kshitij Anand: And it's not market-cap agnostic, you feel? Sushant Bhansali: It will happen across segments. As I mentioned, it happened within the Nifty, and below that too—whether you look at midcaps or smallcaps—the overall universe will likely see 20–30% of companies performing very differently from the remaining 60–70%. Opportunities will be present across market-cap segments. What's needed is more research and conviction to differentiate yourself. Alpha generation will especially come on the PMS side, I would say, because PMS strategies typically run concentrated portfolios. In contrast, many diversified portfolios—especially large mutual funds—now hold 100 or more stocks due to their size. From that perspective, PMS will likely differentiate meaningfully well over the next two years compared to the last three to four years when everything worked. It's not that PMS didn't perform, but even mutual funds performed well during that period. Kshitij Anand: The Bharat theme became very popular, especially since 2014, and remains so. Defence has delivered multi-bagger kind of returns. Is there any theme that's currently on top of your mind, in focus now, or could be in focus over the next few years? We were thinking that post-Budget, consumption could play a big role because the government was focused on boosting it, and that indeed seemed to come through. But now we are seeing some plateauing in performance there. Is there any theme you have in mind? Sushant Bhansali: Ultimately, things that haven't worked in the past one or two quarters—or even the past one or two years—often start working in the next one or two years or quarters. You have to be contrarian to identify sector rotation, as we call it. I think that will take place, and consumption stocks, in particular, haven't done that well in the last one to one-and-a-half years. So, over the next one to one-and-a-half years, especially with tax breaks, lower interest rates, higher liquidity, and what I would call a bonanza for government employees expected in the coming quarters, all of these together should boost consumption. Rural is also coming back—thanks to what looks like a good monsoon this year—after struggling for the last three to four years. I think post-COVID, rural has been really struggling, so that theme should play out. We are expecting a bumper performance… In fact, all the companies we've spoken to on the consumption side—whether listed or unlisted—seem very excited. They have built up a lot of inventory, something they hadn't done in the last one or two seasons. Everyone is expecting a bumper H2, but if it doesn't happen, there is a big risk of a significant market correction. Kshitij Anand: A quick final question on the earnings front. So far, it's been a mixed season. What are your expectations for the next few quarters? Sushant Bhansali: Earnings have been more or less in line for Q4 and even Q1 so far, but that doesn't show you the true picture. They've been in line, but expectations were already quite muted. So, everyone seems content with them. If you look at most research reports, they tend to highlight something else—like volume growth coming back, inventory levels coming down, or working capital improving—and then mention towards the end that PAT is down or up only 4%. That tells you about the market environment, where corporates are really struggling on the earnings front. This season, there's still about a week left for all companies to report. But our guess is that by the end of the season, no more than 20% of companies will be able to deliver 15% earnings growth. If you look at recent history over the past five years, as many as 60–70% of companies were delivering that growth, and for a few quarters, even more than that. But this has been dwindling over the last four quarters. That said, given the base effect, we believe that probably after Q2 results—starting from Q3—we will begin to see high single-digit earnings growth across the board, with the number of companies delivering 15% growth rising from 15–20% now to 25–30%, and eventually to 40–50% over the next few quarters.
Time of India
29-07-2025
- Business
- Time of India
Ambit AMC expands AIF portfolio with launch of Ambit Pricing Prowess Fund; details here
Ambit Asset Management has launched the Ambit Pricing Prowess Fund , an open-ended, long-only Category III Flexi-cap Alternative Investment Fund ( AIF ). The fund is tailored for niche, long-term investors aiming for superior absolute returns by investing in high-quality businesses with strong pricing power and sustainable compounding potential. The Ambit Pricing Prowess Fund (APPF) targets growth companies with lasting Quality and 'Forever' attributes, leveraging a proprietary Pricing Power Framework to identify businesses with robust margins and steady earnings growth. The strategy seeks a prudent mix of offence and defence, while always being prepared for 'Black Swan Events'. Explore courses from Top Institutes in Please select course: Select a Course Category healthcare Data Science Others Public Policy Management Digital Marketing MBA Product Management Data Analytics Cybersecurity Data Science Finance Project Management CXO Design Thinking MCA Leadership PGDM Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details Also Read | NPS equity funds see low single-digit returns in 1 year. Is it time to review your retirement strategy? 'The Ambit Pricing Prowess Fund is built on the conviction that companies with true pricing powers are best positioned for sustainable and long-term compounding, making a compelling case for allocations as part of an investor's core portfolio, especially in today's dynamic markets,' said Sushant Bhansali, CEO of Ambit Asset Management. 'Our rigorous investment framework that combines quantitative and qualitative analysis, focuses on identifying these 'nuggets of gold' – businesses that can raise prices without losing market share, thereby preserving real earnings and shielding investors from inflationary pressures,' said Siddharth Bothra , Fund Manager – Equity, Ambit Asset Management. Live Events Keeping with their core philosophy, "At Ambit Asset Management, it is acumen that helps you invest successfully, with products that stay true to character across market cycles", the new fund is designed to capture resilient, high-quality opportunities that have historically delivered consistent returns with lower risk profiles across various global markets and economic cycles. Also Read | Smallcap mutual funds dominate return charts in 5 & 10 years. What's driving the surge? Ambit Asset Management, the asset management arm of the Ambit Group, offers financial solutions to HNW individuals, families, and institutions. With Assets under Management (AuM) of Rs 4,280 crore as of June 30, 2025, it offers 5 long-only Portfolio Management Services (PMS) and two Alternative Investment Funds (AIFs), including one through the GIFT City route.
Time of India
06-05-2025
- Business
- Time of India
Long-term, India will continue to shine for both domestic & global investors: Sushant Bhansali
Sushant Bhansali , CEO, Ambit Asset Management , says despite a slight economic downgrade, India's 6% growth rate positions it for continued market expansion. Rising domestic equity flows reduce reliance on global investments, attracting both local and international investors. A valuation correction in early months provided a favorable entry point, leading to a significant return of global investors to the Indian market, even amidst global tariff concerns. If you look at the market, if you look at Nifty itself, we have managed to fill in all the gaps. In fact, the Nifty is up almost 10% in the last month. Look at the macros that are playing out. Today we saw Brent crude falling below the $60 per barrel mark. The dollar index is still sub-100 levels and the FIIs have turned net buyers as far as the Indian market is concerned. Do you see this up move in Indian markets likely to sustain? Sushant Bhansali: We are in an interesting time and it's very difficult to foresee how things will play out in the full year because there is so much global uncertainty and to that domestic geopolitical situation which might happen anytime as well. So, there are too many ups and downs. But if you look at and take a more long-term view of three-year plus, then you will see India as a great opportunity. The global economy is just not growing and India even after a small downgrade is still 6% and from that perspective, there is growth in the market. So, we will continue to rise. The equity flows within the domestic community of investors has been rising every passing year for the last many decades and we are still underpenetrated as a country. From that perspective, if flows continue to come in and we are now not necessarily only dependent on global flows to take our market to new highs. From that perspective, from a long-term perspective, India will continue to shine for investors both domestic as well as global. We have seen a bit of global investors coming back into Indian markets. Probably, the valuation correction which happened in February and January was a good entry point for the global investors and despite what happened globally to tariffs, there was a big comeback for global investors in India. India will continue to shine in the long term is what you say. But are there any risks that you would like to highlight at this point in time and also any pockets of the market that you think one should avoid at this point? Sushant Bhansali : If we look at dollar index and USD in particular has been depreciating and that becomes a big uncertainty for exporters which were anyway from a tariffs perspective already living in a big uncertainty and combine that with rupee appreciation against dollar, it is giving from the earning side quite a bit of uncertainty for the next couple of quarters. Live Events You Might Also Like: Nifty could move higher towards 24,857–25,000: Analysts So, anything related to export, especially dolla- related is something one should stay away from for the time being. At the same time, this uncertainty might provide some good entry points for long periods of time. So, one should be open to opportunities in good quality companies which have historically given good earning growth every year, every quarter and those are the times to invest into those companies. Now, from the domestic perspective, rural has been recovering quite well and that is why we have been quite gung ho on domestic consumption and rural play sectors – be it FMCG or BFSI – which are entirely domestic driven. Affordable housing is making a comeback and those are the sectors we prefer. You mentioned a couple of sectors there, but I want to ask you about Nifty Bank because up until now, banks have been providing a good cushion to the markets and have been outperforming. We see a bit of consolidation and correction coming in banks. Going ahead in the next leg of the rally, do you see banks taking a back seat? Sushant Bhansali: If you look at Nifty and probably other large indices, banks will continue to a large part of the growth for the fiscal year in which we are and thereby not see banks losing the momentum in terms of valuation, probably the upside is not that great as it has been for the past few months. But it was a slam dunk investment a year back when nobody was paying attention to them and a large part of the juice is probably already inside the crisis but with earning growth momentum, particularly private sector banks coming in, there are many opportunities going ahead. You Might Also Like: Time to start building wealth? Vaibhav Agrawal says correction in small and midcaps offers attractive entry points for investors
