Ajay Vora expects 16% compounding earnings growth; sees banks and metals doing better this year

economictimes.indiatimes.com:

Ajay Vora, Executive V-P & Head-Equities, Nuvama Asset Management, says they are playing two broad themes. On the consumption side, both at the domestic level as well as the exporters to the overseas market of the household goods looks interesting. Within domestic also, the consumption should ideally now pick up because if you look at segments like apparel, vacations, and the whole hospitality segment – I sense that demand is still very robust over there. They are also playing the infra theme through cement as a sector because we believe that with the consolidation happening there will be a decent price discipline which will result in higher profitability going forward.

How are you dissecting the market construct because the kind of move that one has seen since the election results have been parabolic and now you have another event, the budget in just about two weeks.
Ajay Vora: Broadly, we have been constructive on the markets throughout last year. Although there were some hiccups in between, I think till the time the earnings growth profile was pretty strong, I think that there is very little downside to the markets and that is why from the election outcome day also we have seen a very sharp rally from the lows.

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Because honestly, a 15-16% compounding kind of earnings growth is