Good time to start building small positions in IT: Gautam Trivedi

economictimes.indiatimes.com:

«I think while you may not see necessarily a big SSG growth for both of these businesses, you will see revenue top line and progressively EBITDA growth because the absolute number of branches will keep expanding,» says Gautam Trivedi, Nepean Capital.You have been a big votary of urban consumption and you bought into stocks like Landmark. You bought into stocks like Varun Beverages. You bought into stocks like Sapphire Foods. Where are some of these urban consumption stocks headed because A) it is a niche pocket. B) there is a base effect which would kick in. Yes, I agree.

But if you look at, let us say, Sapphire Foods or even Landmark for that matter and both in some sense are similar because both have branch expansions taking place whether it is adding more restaurants for Sapphire, Kentucky Fried Chicken, or Pizza Hut, or for Landmark geographically moving to other parts of India because they are focussed on the west. They have Delhi.

They have Punjab and then they have an agency of Mercedes in Kolkata and Madhya Pradesh. So, I think while you may not see necessarily a big SSG growth for both of these businesses, you will see revenue top line and progressively EBITDA growth because the absolute number of branches will keep expanding.Where are you investing right now, apart from buying car companies, watch companies, pizza companies, I think Eureka Forbes has made it up there. So, now you are playing the full chain, right? First, build better water, clean water, that is what all of us need. I will tell you, your point on Eureka is interesting but why we bought it in the first place because our ethos of of buying companies is that we try and see if the company has a trigger that is embedded in and that has not played out