He noted that Vishal Mega Mart remains one of the firm’s preferred picks in the segment alongside V2 Retail. Expansion into tier-two and tier-three cities and focus on physical store formats are supporting growth visibility.
Also Read | Dipan Mehta prefers pharma, speciality chemicals; stays cautious on IT, exits Info EdgeHe expects the company to deliver about 20% revenue compounded annual growth rate (CAGR) and 25–28% net profit CAGR over the next two to three years, supported by store additions and improving same-store sales.
Khemka also highlighted MTAR Technologies as a beneficiary of rising global investments in artificial intelligence (AI) infrastructure and data centres.
He explained that the company operates in precision engineering segments across defence, aerospace, nuclear and clean energy industries, while expanding exposure to fuel cell technology through its partnership with Bloom Energy.
“As the world is building more data centres, there is a lot of requirement for reliable power,” he said. The solid oxide fuel cell technology used in power storage systems positions the company to benefit from this demand.Also Read | AI concerns bigger than currency risks; rupee stable on strong macro fundamentals: Goldman Sachs
The company’s momentum is already visible in order inflows, with October-December 2025 quarter orders reaching ₹13.7 billion, nearly five times higher year-on-year. He expects MTAR Tech to post around 40% revenue CAGR and nearly 80% net profit CAGR, supporting its premium valuation and target price of ₹4,800.
On the technology sector, Khemka said, “The AI-led disruption poses a risk to the Indian IT services, largely limited to the legacy services business,” estimating the exposure at around 15–18%.
In the near term, investors should remain cautious due to volatility, but valuations have become more reasonable after recent corrections. Over the longer term, growth will depend on how companies integrate AI into their service offerings.
Among Indian IT stocks, Khemka said Infosys remains the preferred pick due to investments in AI capabilities, followed by HCLTech.
For the full interview, watch the accompanying video
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