Buy HAL, BEL and even ship builders on correction, says Sandip Sabharwal

economictimes.indiatimes.com:

Sandip Sabharwal, asksandipsabharwal.com, says “reduced exposure in the sugar space once the dynamics changed because the next six months are a bit uncertain. But subsequently things might be good, so we might add after a few months. We have added into stocks like Voltas, InterGlobe Aviation because Voltas is undervalued relative to growth prospects and there will be a turnaround in performance in the next two-three years and it could perform like Lupin performed after the turnaround.”

The asset management space in India is evolving on the listed side and now the representation in the markets is going up. You have been a part of the asset management industry for long, how are the business dynamics, competitive landscape and the yields now?
Sandip Sabharwal: There was a phase in between where the regulator was trying to get the cost down for investors. At that time, we saw that despite the assets moving up, the profitability was not moving up and these sectors underperformed significantly. I think the change started from the beginning of last year where that phenomena stalled or stopped and that was no longer the focus of the regulator.

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So, now, profitability improvements could be real for the sector and the part of the asset management company today is that the larger players are becoming larger. Very small asset management companies tend to become successful because people tend to prefer, especially with the SIP culture, to focus on larger names. So, overall the space