Are new age platform stocks worthy of long-term investments? Ashi Anand answers
Ashi Anand, CIO, IME-branded strategies, Valcreate Investment, says the ability of the new age platform companies to continue to compound revenues at over 25% from a longer-term perspective is very clearly there. The misunderstanding in terms of the listed market space is with relation to the longer-term profitability of these companies. What people do not necessarily understand is the sheer quantum of the current expenses are short-term in nature as these expenses are primarily linked to the current hyper growth phases that these companies are on.”
Let’s start with your market construct. What is your view and where do you think we are headed in the near term?
We have had a fairly strong move in the market over the last few months.
This has happened on the back of interest rates as well as inflation peaking. That was a clear headwind for the market which got removed and we saw the big move happening off that.
Now with this move, valuations are no longer cheap, especially if one looks at the core largecaps. However, there are still some headwinds.
The global economic environment clearly is one headwind. Consumption is weak and inflation and interest rates have peaked but are not reducing yet. That kind of construct does not really lay the foundation for a very strong bull market until some of these headwinds go away.
That said, we are very clearly seeing India starting to look extremely attractive from a longer-term perspective relative to all other major global markets.
We are seeing this in terms of the interest that we see from FII flows. It has been over $15 billion so far this year. We are seeing India becoming more attractive compared to China as it has a number of issues.
It is going to be difficult for people to
