Manish Sonthalia warns of overvalued renewable energy stocks amid global headwinds
«We are not talking about the near-term pain that we are seeing in equity market because of the short-term headwinds that we are seeing in India,» says Manish Sonthalia, Emkay Investment Managers.
Capital market stocks. So, I am assuming that Motilal Oswal is also looking good as a stock for a fund manager like you.
Manish Sonthalia: See, I do not want to talk about individual companies, but suffice to say that this entire theme, because it is leveraging a lot of technology and these are somewhat annuity sort of businesses, not specifically the online broking piece, but other pieces across the spectrum. Just one name, it is across the spectrum and mind you why I am saying this is because in India's case, the financial sector is leading the real sector.
And within that financial sector, the tilt is happening away from debt to equity. So, give it one, two, three, four years down the line and given that these are very high operating level businesses in the size of the economy and the size of the financial market, opportunity is just humongous. Entry barriers are compliance and technology. The big only tend to get bigger in the space. Bulk of it is basically robust cash flow.
We are not talking about the near-term pain that we are seeing in equity market because of the short-term headwinds that we are seeing in India. But in slightly long term, I mean, you cannot create these opportunities overnight and once you have them in your portfolio, it is better to stick with it.
I just wanted to understand your view, given
