In companies with high quality growth, valuation is not a concern: Richard Liu, JM Financial
Richard Liu, MD-Institutional Equities Research, JM Financial Institutional Securities, says “the way a lot of businesses are going about doing their business planning is that the endeavour is actually to grow faster than the GDP of the country. There are many categories of consumption, which are able to do that. If you are able to do that sustainably and profitably, that is where you have the winners.”
Overall, from the investor's point of view, where does the interest lie and what is the view on India right now?
The mood is bullish.
I was having lunch with a couple of fund managers, and I think the question really is where could the downside lie because that is what everybody is trying to grapple with. And believe it or not, there were not many convincing answers where the downside could lie. So the mood is overall bullish.
To give you an anecdote, there were some people complaining that it took about five minutes for them to be able to get lunch at the JM conference because of the crowd. That is not a bad problem to have. The problem of plenty is not as bad as the problem of poverty.
Why is it that the economy is looking strong, but the bottom of the pyramid is not growing? If the bottom of the pyramid will not grow, which is 80% of the population and maybe 20-25% of the total spending, that is called the foundation. If the foundation is shaky, then how can the economy grow per se?
Yes, I think, this is really the typical K-shaped recovery that people have been talking about, right.
