Here's why Deven Choksey is bullish on Tata Elxsi

economictimes.indiatimes.com:

«I think we believe that the underlying story remains absolutely very, very convincing for FMEG companies. And that is where I think this company is positioned,» says Deven Choksey, MD, KRChoksey Holdings Pvt. Ltd.UBS has come out with a note on Havells. They have upgraded the stock to now a buy. The target price also has been up to 1900 bucks. They are saying that the structural growth story is back into focus alongside a cyclical kicker. They are saying that it's a $40 billion opportunity by FY28, rising at 10% CAGR. Earnings CAGR currently at 26%. They are saying the concerns over the past two years are now behind them. Capital allocation is going to now return accretive. The valuation-wise, they are saying that it is the best play when it comes to consumer electricals. And they say that they are seeing a sustained revenue share gain, a higher share of premium products, and a turnaround for Lloyd as well, which is in the offing, which is going to aid upside for Havells. Wanted to understand what is your thought here.I think we believe that the underlying story remains absolutely very, very convincing for FMEG companies.

And that is where I think this company is positioned. In my viewpoint, I think the growth will increase on a few counts. On one side, the discretionary spending is also increasing, largely because of the fact that per capita income is increasing.

And given the kind of size of the growth in the economy, in this particular space, electricals and the FMEG, as we call it, I think is probably growing faster than what we have seen before, because of the urbanization also happening and happening at a good speed. So the demand scenario remains absolutely convincing. And the company's position, because of the