Companies with strong balancesheets will bounce back faster post coronavirus crisis, says BOBCAPS

Ratnesh Kumar, MD and CEO of BOBCAPS  is of the view that is difficult to say that at these valuations the market has bottomed out because one cannot predict in these uncertain times, especially, in a scenario one has never seen where you have a chunk of the world being shut. So, i don't think there can be any mathematical sort of bottom, he said.

"The way I would look at the situation is that it is one of those huge events in 100 years whereby the world doesn’t remain the same. As market people, we have to look at managing through this downturn. You cannot predict how long the downturn in the market lasts, neither can we predict how far lower it goes. Any kind of value hunting will need to follow a path of systematic, gradual investing especially in areas where you have balancesheets, strong companies and where the business values, the asset values remain good,” he said in an interview with CNBC-TV18.

“In these kind of times of dislocations, earnings becomes less of a factor, it is more the book value, the cash that is there on the balancesheet, how the company can manage through this tough phase and as and when it ends – hopefully sooner rather than later – who is it that is going to come out of it stronger, faster." said Kumar.