Deven Choksey on 2 sectors that may outperform in the market going forward
«And if the crude oil prices remain low, then in such situation, derivatives of crude oil prices including the energy cost and which is a raw material for metals, I would think that this is going to be directionally very positive,» says Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd.
Is that a challenge at all for Trent you believe, sitting at life-high levels? What would be your recommendation for people on Trent?
Deven Choksey: Well, my understanding of the subject is that currently most of the aspects about the business are fully factored into the price. When you look at the valuations, it expresses all. So, from a valuations perspective, the stock is adequately covered on every aspect. However, having said that, important point to observe here that majority of the funds who have been holding on this stock for the want of second company available in their portfolio of a size, probably they stay limited with likes of DMart, likes of Trent in the portfolio.
Maybe some amount of softening of the price may happen eventually, which could possibly be the entry of Reliance Retail in the market. Now, if that particular situation happens to be the reality, then in such situation, you might see some moderation or correction in the existing e-comm companies which are currently quoting at a valuation which is fairly premium at this point of time.
Any new stocks or themes or sectors that you are watching out for?
Deven Choksey: See, as a direction, we find that the commodity space will remain probably the outperformer in
