These 5 key themes are transforming India's economy, says Saurabh Mukherjea; ace investor bets on these shares
These 5 key themes are transforming India’s economy, says Saurabh Mukherjea; ace investor bets on these shares
In the ever-evolving Indian economy, where change is the only constant, wise investors are always on the lookout for emerging opportunities. At the forefront of decoding these trends is the Founder and Chief Investment Officer (CIO) of Marcellus Investment Managers, Saurabh Mukherjea, who travelled across the country in 2022 and 2023 to identify the emerging themes.
One of the most significant shifts Mukherjea observed is the changing dynamics of profitability. Traditionally, a handful of large corporations dominated the country’s profit landscape. However, in recent years, there has been a remarkable decentralisation, with smaller companies witnessing a surge in profitability. Mukherjea attributes this phenomenon to several factors, including the implementation of GST, the expansion of highway networks, and improved access to banking services for small and medium enterprises (SMEs).
Furthermore, the money manager, who handles assets worth Rs 8,000 crore, identifies the rise of Indian women as a powerful economic force. “With greater access to education and employment opportunities, women now command more purchasing power than ever before,” he said.
The market veteran sees immense potential in companies catering to the evolving needs of this demographic, particularly in sectors such as kitchen appliances, healthcare, and childcare services. By investing in companies like Eureka Forbes and Rainbow Children’s Hospital, Mukherjea seeks to capitalise on the growing demand driven by rising female consumers.
Moreover, the money manager highlighted the democratisation of corporate leadership, with a growing number of non-elite graduates assuming leadership roles in top companies. This shift, he believes, fosters a culture of innovation and entrepreneurship, driving growth in companies like Carysil and Astral Poly, founded by individuals from modest backgrounds but with a knack for disruptive ideas.
The economic boom in South India is another trend spotted by Mukherjea as ripe with investment opportunities. With states like Tamil Nadu, Telangana, and Karnataka experiencing rapid growth fuelled by infrastructure development and foreign investments, Mukherjea sees promising prospects for companies like HDFC Bank and Asian Paints, strategically positioned to capitalise on the region’s economic expansion.
Mukherjea also said that China’s economic challenges also bring a unique opportunity for India to attract global investments and recalibrate supply chains. “Sectors like API manufacturing stand to benefit, with companies like Divi’s Labs and Alkyl Amines well-positioned to capitalise on the shift away from China,” he said.
Lastly, Mukherjea underscores the emergence of a new class of affluent Indians, colloquially referred to as “octopi families,” whose wealth has surged in recent years. This rise in high-net-worth individuals has spurred demand for luxury products and services, creating investment opportunities in companies like Kotak Mahindra Bank and Titan.
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