Is it a good time to play the urban consumption theme? Samit Vartak answers
«Speciality chemical is a very different ball game. I mean, it has been struggling and there are intermittent signs of it reviving, but still it is very difficult as China is dumping and the competition across the globe is huge,» says Samit Vartak, SageOne Investment Advisors.
For a lot of sectors we are at the peak of optimism, they are baking in the best in terms of order inflows, etc. A couple of places where there is still sort of a lack of belief or a bit of disbelief are those like IT, FMCG, chemicals, etc. Are you saying that perhaps it is time to bet on the underperformers?
Samit Vartak: I am looking at companies where I am expecting close to 25% kind of earnings growth. A lot of companies in the IT sector or FMCG will never give you that, even half of that, so they are never really part of my portfolio.
Speciality chemical is a very different ball game. I mean, it has been struggling and there are intermittent signs of it reviving, but still it is very difficult as China is dumping and the competition across the globe is huge.
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When a lot of chemical companies went through huge capacity expansion and then it is impacting the margins significantly and so maybe it is not the right time yet but there will be time but similar if you see the capacity expansion
