Mayuresh Joshi’s top two stocks for 3x-4x growth in five years

«Base case scenario getting worked out that the first half of the next financial year, earnings should start bottoming out, reflecting in probably the spread narrowing as well,» says Mayuresh Joshi, Head Equity, Marketsmith India.

The question which we are debating, deliberating, and discussing is that do we have a durable trading bottom in place for the market now and it will take a lot of global bad news or local events to break that recent low.
Mayuresh Joshi: We have been analysing a lot of aspects, including how the gap between the bond yields and the earnings yields have probably panned out over the last 10 to 15 years and in terms of this narrowing of spreads, we are below the long term averages.

So, to a certain extent the market is trying to pencil in that earnings should start reviving at some point of time as we head into the first half, both as a combination of better monsoons, aiding global recovery, and consumptions improving because of the tax cuts that we have probably seen.
So, base case scenario getting worked out that the first half of the next financial year, earnings should start bottoming out, reflecting in probably the spread narrowing as well.
The second aspect obviously has been in terms of the previous and the past corrections as well and the periodicity of this correction, obviously from oversold zones, we have probably come back to a large extent, but to a large extent as well all the previous falls that we have probably seen, the kind of battering that has happened across this fall in