Is there enough headroom for ITC to rise significantly from here? Jonathan Schiessl answers

economictimes.indiatimes.com:

Jonathan Schiessl, Deputy CIO, Westminster Asset Management, says “the FMCG side of ITC’s business has always been theITCdarling of the business that will grow one day and become a huge side. Yes, it is clearly a big business. Clearly, it has been accelerating momentum but it is a very competitive space.

There are a lot of very strong, both international and domestic competition in that space. So there is a huge addressable market. And if they get that right, it is potentially very interesting.”Do you think manufacturing was the next sunrise sector for the Indian markets? Within that as well, there are a lot of verticals, right from defence to electronics manufacturing, etc. Is this a space that excites you?Yes, I think so.

I would agree with you. I mean, obviously, you have got to consider where we are in the underlying economic cycle for which part of the sector. You have got to look at the available listed stocks in each area.

But clearly, you have got structural stories such as, the geopolitical situation and some manufacturing activity has certainly been moved into India, which presents opportunities for various different segments in the Indian listed space as well and unlisted. So, yes, an interesting space. There is a good variety of stocks available in India and certainly one which traditionally, where we can we have tended to play as well.What is your take on PSU banks as well because like we were discussing earlier, the underlying trend this time around seems to be that since Q1 the margins have peaked out. Now, that could very well be a short-term phenomenon.Absolutely.