Kotak AMC bets on consumption theme

Kotak Mahindra Asset Management on Monday said with the phased unlocking of the Indian economy, it's betting on consumption theme.

In an interview to CNBC-TV18, Harish Krishnan, senior vice president and equity fund manager, said "Almost all of these companies are embarking on new capex programmes and the idea is that the payback period for these capex programme will be in 3-4 years. If it so happens, there is money to be made but we are selective in this space rather than going completely all-out into the space."

"There has been a permanent shift in terms of consumer habits and that’s the hypothesis that we would like to play for a lot of these themes. Of course, valuations have run up and for all the good companies in India, valuations are pricy. So it’s a question whether you want to go down the curve or you want to be within this pool wherein you believe that there are some permanent shifts that have happened because of COVID," Krishnan said.