Paytm and Zomato over Tata Motors —Samir Arora's unconventional investment strategy
In an interview with CNBC-TV18, Samir Arora, Founder and Fund Manager at Helios Capital said that the IT sector is likely to face additional challenges in the near future. While he acknowledged the potential of companies like Paytm and Zomato, he believes that the IT industry will confront obstacles that may impact its performance.
The information technology (IT) sector is reeling under the shadow of the global economic slowdown as macroeconomic challenges, cautious client spending, and a banking crisis in the US and Europe making it a grim picture. This has now prompted leading investors and fund mangers thinking unconventional and change their strategies accordingly.
In an interview with CNBC-TV18, Samir Arora, Founder and Fund Manager at Helios Capital said that the IT sector is likely to face additional challenges in the near future. While he acknowledged the potential of companies like Paytm and Zomato, he believes that the IT industry will confront obstacles that may impact its performance.
He said, “Have all kinds of stocks in a portfolio, which is what I have been saying for 20 odd years that you cannot be narrowly focused. So, for example, many of these from Paytm to Zomato, we also have, and on the other hand, we do not have the Tata Motors types.”
Arora mentioned that he does not own shares of Tata Motors, despite having investments in other prominent companies. He cited the lack of a clear understanding of how to analyze such a large corporation as the primary reason behind his decision. While Tata Motors holds a significant presence in the automotive industry, Arora appears hesitant to invest due to the complexities associated with assessing the company's dynamics.
Contrary to his reservations about Tata Motors, Arora disclosed that Helios Capital has acquired more shares of Adani Ports and Special Economic Zone.
Talking about renewable energy space, he said that his firm is not currently looking at renewable energy as an investment avenue. This stance indicates a divergence from the growing trend of investing in clean and sustainable energy sources. Arora did not provide specific reasons for his disinterest in renewables, but it appears that he favours other sectors that align more closely with his investment strategy.
For more details, watch the accompanying video
(Edited by : C H Unnikrishnan)
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