Earnings trajectory for next two-three years is going to be 16.5%: Pankaj Pandey
«So largely, overall earning trajectory for the next two-three years is going to be 16.5% so I think that is the kind of a broader return to what one can expect in Nifty on a on-going basis,» says Pankaj Pandey, Head Research, ICICIdirect.com.
What are you telling your clients about Nifty hitting 20,000? What is next?
On the Nifty what we have been saying is that overall our target is at 21500 which is 19 times FY25 earnings and possibly in some months, we will be incorporating FY26 numbers.
So largely, overall earning trajectory for the next two-three years is going to be 16.5% so I think that is the kind of a broader return to what one can expect in Nifty on a on-going basis.
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But I think we have seen markets rallying up, especially the midcap, small cap space. I think the pace of rallies are definitely surprising. So I think large caps are offering a lot more comfort from a risk-reward perspective compared to midcaps and small caps but having said that, we still get stocks in the midcap and small cap where we have not seen the kind of appreciation and possibly some of these names are still looking good.
But I think this is not a time to exit market, given the fact that we are trading at rich valuation. I think one thing is very clear, given what we are seeing, it is too much money chasing few good stocks.
I think one should not really down-trade in terms of quality of stocks and possibly which is why you may not really get stocks at a cheaper level.
I think in this kind
