Where to find value or growth or both in the next two or three years? Sunil Subramaniam explains

economictimes.indiatimes.com:

Sunil Subramaniam, MD & CEO, Sundaram Mutual, says “we believe that the capital allocation from the markets has not gone towards discretionary consumption as much as it should have and consequently that, especially the premiumisation of consumption, which is very strong. As per capita income grows, we are already seeing the beginning of premiumisation in automotives, in housing. We are seeing high-end properties, high-end cars selling much faster. We believe that that is a segment which is fully not tapped yet.”

Where are you spotting opportunities, either deep value or companies or businesses which are at a cusp of either market share gain or earnings recovery, like pharma and cement. Can you be more specific about where you are finding a combination of either value or growth or both in the next two or three years ?
I think that because it's a relative feature. What has happened is that the market has diverted attention towards capital goods and infrastructure heavily over the last few months and hence discretionary consumption has tended to suffer. We believe that is the real cyclical story, because a), they are rate sensitive as EMIs are involved in the purchase of most discretionary consumption items but b)they are highly cyclical because it is mostly middle and small cap companies which borrow heavily and hence interest costs are very high and their plant and investment costs are also very high. So, they are highly leveraged.

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We believe that the capital allocation from the markets has not gone towards discretionary