Market veteran Raamdeo Agrawal expects digital banks to make huge profits going forward, he said in an interview to CNBC-TV18. The Indian digital rush has begun and digitisation will transform the economy, said the Chairman and Co-Founder of Motilal Oswal Financial Services.
“A bad business with 100 percent digital thing – they are just dot-com; it doesn’t mean anything for the stock market because you are valuing the future profits. So making profit whether digital or not digital is extremely important and that’s where old and new connections,” he said.
The next 10 years look exciting for the Indian telecom industry, he said.
According to Agrawal, Asian Paints is the most digital in its sector.
He is bullish on the turnaround of e-commerce company IndiaMart.
“IndiaMart, four years back it had 45 percent negative EBITDA and now it is 45 percent positive profit after tax (PAT); every company is not going to go through like that but that is the potential,” he said.
Agrawal sees huge potential in Tata Consultancy Services and Infosys when it comes to catering to changes. He is positive on the tech and financial services spaces.
“Tech and financial services, both have top-rated profit share and hence the market share. I think those segments will become even bigger; in 2000 (year) IT was 1 percent of the total corporate profit, today it is 24 percent of the total corporate profits,” he said.