Are fears and panic around PSUs overblown? Sandip Sabharwal answers

economictimes.indiatimes.com:

«The situation was never as good in the Indian aviation market as it is today because there are effectively only two large players, Vistara Air India combined and InterGlobe Aviation,» says Sandip Sabharwal, asksandipsabharwal.com.

Let us get stock specific then and get in your take on the entire chemical sector, brokerages are of the view that it is still not out of the woods, in fact they have cut the target price of most of the companies like SRF, Tata Chemicals, Navin Fluorine. What is your outlook?
On the chemical side there is still huge overcapacity, largely prices are under pressure, so obviously when prices fall a lot there is some upswing but given the huge oversupply position and the demand supply mismatch and the fact that many of these companies have added significant capacity over the last one or two years and are in the process of adding more capacity, so what this will do is that this will create diseconomies of scale so because of huge capex and low prices and as the plants become commercialised you will have interest costs, etc, also coming into your P&L.

So, it is going to be a tough phase. So, first, we will have to see a price revival stage, then a restocking stage from destocking which was on.