Mehul Bhatt on where to look for stocks which are ripe for value-hunting

economictimes.indiatimes.com:

Mehul Bhatt, Founder & CIO, OysterRock Capital, says “the special situations as we define them – which is wherever there is a change, there are a lot of interesting opportunities where companies are going from commodity to value added or are going from B2B to B2C or in some instances there are demergers – these are good hunt zones for guys like us.”What is your market view right now because while we are not witnessing a runaway rally, it is quite a bit off from the March lows. So a solid recovery in the last three, four months?If you take an outside view of India, it has never been this good for the last 20-25 years. The macro situation and the way India is being recognised in the world is unprecedented.

Manufacturing, which was in the background is now coming to the foreground. Every morning, you open a newspaper and there are full page Apple and similar ads. These are being made in India and so manufacturing is now coming to the fore.

That is a very important piece in the puzzle. Rainfall has been good. Markets are in a state of predicament and they are neither insanely expensive nor are they very cheap.

Going into election season, there will be some opportunities for people like us who are more value conscious when buying stocks. That will give us opportunities to buy stuff at more reasonable valuations.But what would it be, would it be more of the same; bunch of financials, manufacturing as the large theme and utilities?Before that, the rise in the last few months, a lot of stocks have gone up, a lot of sectors have done well. It is not like 2007, when infra and capital goods stocks did very well or 2000 where tech did well.