Mehta said competition from new entrants in the auto market remains limited as overall demand continues to expand. He noted that Indian companies are increasingly looking at overseas markets to drive growth.
He said companies such as Maruti Suzuki are focusing more on exports, while other players may also explore overseas markets over time.IT sector enters wait-and-watch phase amid AI debate
On information technology stocks, Mehta said uncertainty around artificial intelligence (AI) has created diverging market views, but the sharp correction in IT shares has already priced in several concerns.
“The time to sell IT is gone because they’ve corrected so much,” he said.
Also Read | Uday Kotak warns against AI ‘colonisation’, urges India Inc to invest more in R&D and stay competitive
According to him, AI’s impact will vary across companies, with some benefiting through implementation opportunities while others may face pressure. He said investors should track company-specific developments instead of taking a broad sector view.
Pharma and speciality chemicals emerge as preferred sectors
For a two-to-three-year investment horizon, Mehta said pharmaceuticals appear attractive due to stable domestic demand, export expansion, and currency benefits.
He added that tariff risks for pharma companies appear limited and opportunities in new therapy segments could support growth.
Mehta also highlighted speciality chemicals, noting that the sector is recovering after a cyclical slowdown and has reported improved earnings across companies. He said rupee depreciation and global supply diversification trends continue to support the industry outlook.
Along with these sectors, he remains positive on auto ancillaries and non-banking financial companies.
EV segment under pressure; Ola Electric remains a hold
Commenting on Ola Electric, Mehta said the broader electric vehicle segment is facing challenges, including subsidy-related issues and demand concerns.
Also Read | Sajjan Jindal says India Inc lacks R&D firepower, urges learning from China
He said investors already holding the stock may continue to stay invested, describing it as an optional bet dependent on operational execution and market share improvement.
AI infrastructure is attractive but expensive
Mehta said companies offering direct exposure to artificial intelligence infrastructure remain limited in India, naming E2E Networks and Netweb Technologies as key players.
He said strong revenue growth is accompanied by high depreciation costs, making valuation assessment complex.
“It’s a great company, right place at the right time, but very expensive,” he said about E2E Networks, adding that execution risks and potential competition remain factors to watch.
Suggests exiting Info Edge despite valuation comfort
Despite long-term investment exposure, Mehta indicated that investors may consider exiting Info Edge due to slowing growth in its recruitment business and continued losses in some verticals.
He said holdings in investee companies are already reflected in valuations and should not be the sole reason to remain invested.
New-age digital companies are suited for small portfolio allocation
On companies such as Urban Company and Meesho, Mehta said investors can consider limited exposure given their scalable platform models.
He advised treating such investments like options within a portfolio, as profitability timelines remain uncertain, but long-term growth potential exists.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
