Positive on specialty chemicals, real estate pack: Shibani Sircar Kurian

economictimes.indiatimes.com:

Shibani Sircar Kurian, Senior EVP, Fund Manager & Head -Equity Research, Kotak Mahindra Asset Management, says “our valuations are slightly above long term averages. We do expect to contend with some degree of volatility in the near term. Of course, if there is any correction in the market, as long as earnings delivery continues, that would possibly be an opportunity. But at this point in time, we believe that given that valuations are somewhat elevated, markets could see some degree of volatility.”

What is your take on a very boring market? Is it the time to consolidate and look at the bets that you want to add in your portfolio? If you look at it in two parts, we have nothing to complain about the terms of the fundamentals and the delivery on the earnings side. Even in the earning season gone by, the overall earnings trajectory for the broader market was largely in line with estimates and there have been no major earnings downgrades for both FY24 and FY25. So the earnings trajectory remains fairly healthy.
However, we have to contend that today in the markets valuations are not cheap and are above long term averages. Whether you look at price to earnings, you look at price to book, you look at yield gap, or market cap to GDP, on every parameter, the market is telling you that valuations today vis-à-vis long term averages are above the mean level.

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Therefore, from that perspective, given the fact that even on a relative basis, our valuations are slightly above long term