Pharma an undervalued, under-owned, high on comfort space for next 1-2 years: N Jayakumar
«But for me, it is largecaps the way forward and I am pretty clear that this is also a choice based on one's own, pardon my saying so, but age and stage in life if you will. I am not one who would go gung-ho on smallcaps, at least not at this point in time,» says N Jayakumar, MD, Prime Securities.
And given that the markets are also leaning on the high possibility of continuity and that is perhaps what is giving a lot of comfort, what would be the allocation when it comes to large, mid and smallcaps?
I think at this point in time the greatest comfort is in largecaps. They may give lower returns than some of the midcaps and certainly less than some of the smallcaps but I think at 23,000 preservation of capital is far more important than return on capital and this is especially true I would say for this year which is 24-25 at least for the first half.
And then you make your picks based on, as I said, not just India, not just absolute valuations, but individual companies and then you can look at generating your alpha significantly more than market returns.
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But for me, it is largecaps the way forward and I am pretty clear that this is also a choice based on one's own, pardon my saying so, but age and stage in life if you will. I am not one who would go gung-ho on smallcaps, at
