Devang Mehta, Director at Spark Private Wealth, argues that investment opportunities lie in capex and consumption-oriented companies, despite recent stock corrections. He highlights Maruti as a potential buy and discusses the dynamic IPO market and challenges within the automotive sector, urging careful selection in investments.
Devang Mehta, Director of Equity Advisory at Spark Private Wealth, highlights the present investment landscape, favoring capital expenditure (capex) and consumption-oriented sectors. While there has been significant correction in stock prices, identifying key themes such as capex should be integral to investment strategies today. He points to capital goods and power automation sectors as promising areas for investment, especially for those taking a long-term view. Mehta suggests that specific stocks like Maruti, which has experienced a decline from approximately Rs 13,000-14,000 to Rs 11,000, may present an attractive opportunity for buyers with a one-to-two year investment horizon. Furthermore, while discussing the ongoing changes in the IPO market, he notes that numerous companies are capitalizing on the recent wave of fundraising, emphasizing the importance of quality offerings amidst market fluctuations. The automotive sector, particularly electric vehicles like Ola Electric, has faced challenges with declining stock prices and increasing competition. Mehta emphasizes the necessity for careful selection within this space, owing to variable performance among individual companies during the festive season. In summary, with a recent correction in large-cap and small-cap stocks, Mehta believes that select capital-oriented and consumption-focused companies present substantial investment opportunities. A diverse portfolio containing capex-focused businesses could yield favorable returns over the next one to two years, particularly in the context of improving market conditions for quality stock listings.
The article discusses investment trends as articulated by Devang Mehta, who emphasizes the importance of capital expenditure-related companies in the current economic climate. Mehta’s insights come at a time when stock markets have experienced noticeable corrections, prompting investors to reassess their strategies. Additionally, he addresses the implications of recent trends in the IPO market and competitive challenges in sectors such as automobiles, particularly electric vehicles.
In conclusion, Devang Mehta advocates for a strategic focus on capital expenditure and consumption-oriented investments, especially within the capital goods sector. He identifies potential opportunities in newly corrected stocks and emphasizes the need for investors to approach the market with caution and selectivity. Overall, the article reflects a careful analysis of the current investment landscape, suggesting that a well-diversified portfolio aligned with identified themes could yield positive long-term results.
Original Source: m.economictimes.com
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