Manish Gunwani, Head of Equity at Bandhan AMC, which manages assets worth nearly ₹191.67 crore, believes India’s macroeconomic environment is turning favourable for equities, especially over the medium term.Gunwani sees the case for consumer stocks improving although he says investors need to be selective. “Tax cuts, expected reduction in interest rates leading to lower EMIs, and the upcoming Pay Commission review—all these could drive consumption,” he said. He also highlighted that monetary easing and an improving economy typically support spending patterns, making the consumption story more compelling.
With some large caps still remaining expensive, Gunwani is looking at smaller consumer companies that have underperformed and are trading at more reasonable levels. “Some of them are trading at just one to two times their sales because of recent underperformance. But if the cycle turns, they could re-rate to three to six times sales, as has been seen in India historically,” he noted.
Read Here | DSP’s Vinit Sambre sees long-term value in small and midcapsHe also pointed out that the broader market—especially companies outside the top 50 by market cap—offers significant investment potential.
But as structural growth in large consumer categories like two-wheelers may be plateauing, given how deeply penetrated such markets already are in India. the focus should shift to categories where consumers are willing to spend more—a phenomenon known as premiumisation.Gunwani is positive on financials but believes growth in banks may not be high, even though they make up a large part of the sector. He believes segments like general insurance, life insurance, and asset management companies (AMCs) offer promising opportunities.
With some large caps still remaining expensive, Gunwani is looking at smaller consumer companies that have underperformed and are trading at more reasonable levels. “Some of them are trading at just one to two times their sales because of recent underperformance. But if the cycle turns, they could re-rate to three to six times sales, as has been seen in India historically,” he noted.
Read Here | DSP’s Vinit Sambre sees long-term value in small and midcapsHe also pointed out that the broader market—especially companies outside the top 50 by market cap—offers significant investment potential.
But as structural growth in large consumer categories like two-wheelers may be plateauing, given how deeply penetrated such markets already are in India. the focus should shift to categories where consumers are willing to spend more—a phenomenon known as premiumisation.Gunwani is positive on financials but believes growth in banks may not be high, even though they make up a large part of the sector. He believes segments like general insurance, life insurance, and asset management companies (AMCs) offer promising opportunities.
While these stocks aren’t as cheap as they were a few years ago, he pointed out that their market capitalisations still look modest when compared to the potential growth over the next 5 to 10 years.
Financials currently offer one of the best risk-reward profiles in the market. Overall, Bandhan AMC remains overweight on several financial segments, especially AMCs, general insurers, and life insurers.
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