Why Arvind Sanger sees potential in big private banks
The Managing Partner of Geosphere Capital Management said valuations are a concern if one is investing with a near term view.
Arvind Sanger, Managing Partner of Geosphere Capital Management is finding good investment opportunity in big private banks as "you cannot have a real economic cycle without large private sector banks participating."
In an interview with CNBC-TV18, Sanger pointed out that valuations are a worry if one is investing with a near term view.
"If you're talking about a three month move, I think every valuation signal that I've seen in history is suggesting red; the valuations of mid cap and small caps are far in excess of any historical valuation mean and completely at the high end, trading at a premium to large caps," he stated.
However, there are good investment opportunities, such as in private banks, if it is with a longer term view.
Sanger also reiterated his preference for the power sector within public sector undertakings (PSUs). He believes India's power sector story is not over by any stretch of the imagination. "The Indian power demand-supply tightness is going to persist for a while.”
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India's power consumption grew 7.5% during the April to January period this fiscal year compared to the same time last year, indicating an uptick in business activities. The country consumed 1354.97 billion units during the period versus 1,259.49 billion units last year. The consumption for the last fiscal year (2022-23) was 1505.91 billion units.
Geosphere Capital is focusing on sectors that have been slow to grow and aren't necessarily pursuing those that have already performed exceptionally well in terms of investing additional funds.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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