Chakri Lokapriya on his top largecap, midcap and smallcap ideas for 2024
Chakri Lokapriya, CIO & MD, TCG AMC, says: “The midcap idea for 2024 is Sterling and Wilson. This company now makes up the solar industry. They benefit from a fall in solar module prices. Reliance Industries owns about 40% of the company itself. Amongst the largecaps, SBI and ICICI Bank have good valuations and strong balance sheets. Among smallcaps, the top idea is a very small chemical company called Gujarat Themis. Valuations are on their side and they are beginning to get some export and other orders.”
Give us a sense as to what the outlook is when it comes to PSUs as a whole because a lot of top market experts we have been interacting with seem to be of the view that the year ahead as well could look fairly promising. What is your sense after the heady run up?
Chakri Lokapriya: Indeed. As we go into 2024, PSUs are still very well placed. Some of the PSUs, of course, have run very sharply but their evaluations are still not demanding. Now, why have they run up? If you take PSU financials, basically their balance sheets are very strong. NPAs are very low. Credit cycle for corporate government capex has picked up and will continue to do well.
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So when you have three main ingredients on a strong balance sheet then you have upside which is pretty much intact. The second in terms of whether the industrial space, again, whether it is the power sector or the infrastructure space, again, there is this multi-year shift to green energy, shift to infrastructure spending, which
