Saurabh Mukherjea’s investment mantra: These 5 stocks may be good bets going ahead

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Published: July 1, 2019 12:04:20 PM

Even as the stock markets trade at record highs, the high valuations in stocks may be a cause of worry going ahead, said a veteran market analyst.

Even as the stock markets trade at record highs, the high valuations in stocks may be a cause of worry going ahead, said a veteran market analyst. The Indian markets are currently overvalued by 15-20 per cent, Saurabh Mukherjea, Founder, Marcellus Investment Managers told Financial Express Online in an interview. Sharing investment advice, Saurabh Mukherjea said Asian Paints, HDFC Bank, Kotak Bank, Marico and Pidilite could be good bets for the investors, even as he said that he holds no idea about when the markets getting corrected going ahead. Talking about the ongoing NBFC crisis, the market expert told Ashish Pandey of Financial Express Online that it would take at least 6-12 months more to resolve the issue.

Here are the excerpts of the complete interview

Will markets see more correction in the post-budget period? 

I have no idea whether the market will correct or not but I do believe that the overall Indian stock market is 15-20% overvalued.

What’s your advice for the investors? What are your top picks?

We continue investing our clients’ monies in Consistent Compounders like Asian Paints, HDFC Bank, Kotak Bank, Marico and Pidilite. Please note that several of my colleagues and I also own these stocks through our Marcellus PMS accounts.

Share your expectations from the budget?

I try to stay away from this parlour game of budget forecasting partly because it has very little to do with investing and partly because it is presumptuous on my part to believe that the government should care about my expectations from the budget. However, looking at the data on hand regarding the government’s spending projections and FY19 tax collections, I believe the government should throttle off on spending growth and focus on tax collections especially GST collections. India’s fiscal position is worrisome and we need a year of fiscal consolidation.

When do you see the NBFC crisis getting resolved?

We are halfway through the NBFC crisis. I reckon it will take at least 6-12 months more to resolve this. The good news is that RBI, New Delhi and SEBI are doing what they can to engineer a soft landing.

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