Valuations in paint sector rich, buy long-term; overweight on financials: Motilal Oswal Financial

Gautam Duggad, head of research-institutional equities at Motilal Oswal Financial Services, on Wednesday said that valuations in the paint sector are rich.

“The structural factors that drive the paint growth in India are as relevant today as they were a decade back. However, valuations are expensive, so this is a sector which is suitable for somebody who has a long-term orientation,” Duggad told CNBC-TV18.

Talking about the auto space, he said it is expected to contribute to earnings growth going in FY23 after staying absolutely flattish for the last 3-4 years. “In fact, in FY18, the peak earnings of the Nifty auto companies was Rs 30,000 crore. We are ending FY22 or expect it to end with about Rs 17,000-18,000 crore of earnings and then it’s expected to do Rs 40,000 crore of earnings in FY23,” he said.