Nykaa IPO: Asset-light model impressive but not in a rush to buy, says Pramod Gubbi
Pramod Gubbi, co-founder of Marcellus Investment Managers, on Thursday, said that it’s worth being invested, but invest in companies with strong fundamentals and long-term competitive advantages.
Pramod Gubbi, co-founder of Marcellus Investment Managers, on Thursday, said that it’s worth being invested, but invest in companies with strong fundamentals and long-term competitive advantages.
“I don't think it's a time to run away from the markets. It is well worth to be invested, but be invested in companies with strong fundamentals and long-term competitive advantages, which was not the case in the last 12 months and that will be a clear differentiator, going forward,” Gubbi said, in an interview to CNBC-TV18.
On new-age businesses, he said, “Eventually, there will be competition in all of these sectors but currently it’s the formalisation plus consolidation trend which is giving legs for many of these businesses.”
“Our investment philosophy looks at longer track record and many of these have done well of late, particularly, Nykaa has; it’s incredible how asset-light the business has been with very little capital investment and it has grown to such a large size, but we would rather wait. These are good businesses that will do well in the next few decades, so I do not think we would be in a rush to buy. We will do our homework, we will wait till we are convinced about that aspect of sustainable competitive advantage,” said Gubbi.
For the entire interview, watch the video
(Edited by : Dipikka Ghosh)
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