Pockets in auto, retail & PSU have run up too fast, too soon; avoid for next 6-9 months: Pawan Parakh

economictimes.indiatimes.com:

Pawan Parakh, Fund Manager, Geojit Financial Services, says in auto, we have hardly scratched the surface as far as electric vehicles are concerned, but a lot of these companies are getting valuations as if EV is 20%, 30%, 40% of their sales. This is one segment where, even at the OEM level, there are unbelievable valuations. Apart from that, in the retail space, once again some of the companies, despite how good the performance is, the valuations can be justified. Also, in some of these PSU names, a lot of the stocks have run up as if they are great Maharatna companies. These are the few pockets Parakh will be looking for the next two-three quarters.
What so far within the earnings has really stood out for you either as a positive or a negative surprise?
Pawan Parakh: So far not many companies have reported their earnings but whatever is out, it is one sector which we continue to like. Very clearly from now on or maybe a quarter onward you should see momentum coming back as far as its revenues are concerned. So, it is one sector which looks good. Some of the data that we picked up from various channels is that this time around e-comm sales are also being reasonably good.

We are of the view that consumption cycles should rebound back. Within that, we believe a lot of these consumer distribution companies should start reporting good numbers and if not good numbers, because q2 anyways otherwise is a soft quarter but I would want to believe that a lot of these companies will paint a very rosy picture as far as outlook