Market exciting from 12-18 month view; positive on realty, says Nepean Capital’s Gautam Trivedi

The market is looking very exciting from a 12-18 month perspective, said Gautam Trivedi, co-founder and managing partner of Nepean Capital on Monday.

“The market for FY22 and the next 12 months looks very exciting to us because of the important combination of low-interest rates, liquidity, reforms, the production-linked incentive (PLI) scheme, which we believe is going to unleash a lot of capex in the country, the vaccine, vaccinations and more importantly, returns to earnings growth,” Trivedi told CNBC-TV18.

Speaking about the realty sector, Trivedi cautioned that there is a need to be careful about the quality of promoters in realty.

“There are far and few good real estate companies that are listed and as a result that would be the sector to focus on.”

The government’s vision on privatising various public sector undertaking (PSUs) is encouraging, he added.

“The news emanating from the Prime Minister himself and the Prime Minister’s Office (PMO) is very positive but he (the PM) also said that the PSUs should remain in only four strategic sectors. This announcement was made by the finance minister in budget 2019, but nothing came out of it. So a lot is going to depend upon the final implementation,” said Trivedi.

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