Deepak Shenoy is not booking profits, rather investing a lot more. Here’s why
Deepak Shenoy, Founder, Capital Mind, says “PE ratio at the smallcap index is less than that of midcap or the largecap indexes. They have shown earnings growth that have come at a fast clip. In the last six months, we have seen some stock price rises.
If you choose some stocks, you will see some corrections in them. But If one is looking at a long-term story, now is a good time to pick stocks. India is in a very interesting stage, where the next 10 years are going to be very positive for us.Chemicals is a space which you have tracked in the past. I think you have an investment in Sudarshan Chemicals. But it is a complicated space. Here there are very few good numbers and a lot of bad numbers.Yes, indeed.
The problem this time, in this particular quarter, has been surprisingly bad. We do not have too many direct investments in this space anymore. In fact, Sudarshan was an old investment of ours.
But as I have not tracked the space, I am a little surprised by the relative scale of the bad numbers. I have not seen the UPL numbers fully yet. But I know that this has been a tough quarter overall compared to what usually tends to be a good quarter seasonally for such companies.
I do not have any specific ideas on why this has happened. At this point, we are not tracking the space quite enough to have clarity on this.Where are you booking profits in this market?I am actually not booking profits. Actually, we are investing a lot more.
It seems to be that there is too much scepticism about this rally and especially when you are talking of the midcaps and smallcaps. But some of the results have been quite incredible. The news flow also is quite strong.
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