In a recent interview with ET Now, Aveek Mitra, the founder and chief advisor of Aveksat Financial Advisory, insights were shared regarding Public Sector Undertaking (PSU) bank stocks, Oil Marketing Companies (OMCs), and the power sector.
PSU Stocks Analysis:
Mitra addressed the elevated valuations of some PSU stocks, acknowledging that his firm missed the rally. Despite this, he highlighted the potential in certain PSUs, particularly those in the defense sector. Mitra noted that while his firm has not invested in PSU stocks, they recognize the value potential, especially with the government’s focus on defense. He also mentioned the launch of a PSU fund by Quant, indicating a growing interest in this sector.
View on OMCs and the Power Sector:
Discussing the energy sector, Aveek Mitra expressed optimism about renewables, LNG, and PNG (Piped Natural Gas). He emphasized the potential in companies indirectly involved in these sectors, such as suppliers of smart metering or turbines for wind projects. Mitra praised the Indian government’s commitment to renewable energy, highlighting it as a long-term investment opportunity.
PSU Banks vs. Private Banks:
Aveek Mitra shared insights into the banking sector, highlighting challenges in garnering deposits at a reasonable cost. While credit growth is robust, deposit growth lags, leading to intensified competition among banks. Mitra expressed confidence in PSU banks, citing improvements in their balance sheets over the past decade and the stability provided by continuity in leadership.
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Investment Strategy and Portfolio Updates of Aveek Mitra:
Regarding investment strategy, Mitra revealed recent additions to his portfolio, including companies in the footwear and real estate sectors. He mentioned investing in a Mumbai-based real estate company poised for growth. Mitra affirmed his firm’s commitment to riding trends in the market, indicating no trimming of positions despite market fluctuations.
In conclusion, Aveek Mitra’s insights provide valuable perspectives on the future of PSU bank stocks, OMCs, and the power sector. His analysis underscores the importance of monitoring market trends and identifying opportunities for long-term growth. As investors navigate through uncertain times, Mitra’s approach of identifying emerging sectors and prudent investment decisions serves as a guiding principle for sustainable wealth creation.