Here's why Chakri Lokapriya is bullish on EMS companies

economictimes.indiatimes.com:

PSU stocks have had a very strong run. And the one thing which is actually going in the favour of all the PSU banks is that as we move towards May of next year, the infrastructure spend and all the public government spend is only going to accelerate further which is good news for all the PSU banks," says Chakri Lokapriya, CIO & MD, TCG AMC.Do you also believe that perhaps that linear move in some of these PSU stocks is now behind us?PSU stocks have had a very strong run.

And the one thing which is actually going in the favour of all the PSU banks is that as we move towards May of next year, the infrastructure spend and all the public government spend is only going to accelerate further which is good news for all the PSU banks. So the loan growth rate which has kind of come down 14-16% can kind of accelerate back.

We are close to an interest rate peak, hopefully that is depending on what the US Fed does and how RBI responds. So which means again the NIMS which have been contracting because of the deposit repricing that will see some amount of plateauing as we hopefully go into the second end of 2023.

And as that happens then, again the valuations, even now they are not expensive but again the valuations, it provides an additional room for further expansion of their profit growth rates.Lots of question marks regarding that investment in RBL. Your thoughts and how have you looked at M&M's trajectory and the SUV outlook? I think the SUV outlook for M&M has kind of gone down today.

There is more competition than there was. The bookings for some of its flagship products is actually kind of slowing down so while there is still overall healthy profits, I think the margins will kind of start getting hit as you go into the next