Prefer proxy plays in metal, tech or IA to do better than traditional IT: Devang Mehta

economictimes.indiatimes.com:

Devang Mehta, Director, Equity Advisory, Spark Private Wealth, says the construct of the benchmark indices over the next three, five years, will see a sea change from conventional ones to some of the non-conventional ones and those non-conventional ones at that point would be conventional ones. So,, cutting the long story short, one should be in a lot of these innovative companies, rather than being in the normal run-o- the-mill type of businesses.

If I had to ask you for one stock, which is probably going to return 170% in 2025, what comes to your mind?
Devang Mehta: I probably would not be able to comment on individual businesses or stocks, but I can probably talk about a theme which has been our favourite this year as well.

It is manufacturing/ engineering/ capex. If I can boil it down a little bit, there are themes like power automation, stamping and lamination.

There are a lot of such allied themes where there are renewables, power ancillaries, and themes where you could probably find out a lot of mid and small size businesses which are exhibiting both robust revenue growth, earnings growth, and most importantly most of these companies are also free cash flow generating companies.
My sense is that rather than being in the usual suspects or rather than always being in the crowded trade, there are always these types of themes and companies which are available, which are going to serve the next leg of India growth – be it semiconductor, power, ancillaries, or the renewables.

These are interesting sectors to be in. A lot of companies are probably in a sweet spot because we are seeing so many different sectors getting listed, so many different types of companies and flavours being exhibited in the market that probably