Banks, NBFC, real estate sectors offering investment opportunities, says Saurabh Mukherjee of Marcellus Investment Managers; lists his top bets

The economy of India is continuously recovering and investing in quality stocks by looking at the fundamentals will be beneficial for investors said Saurabh Mukherjee, Founder and Chief Investment Officer of Marcellus Investment Managers.

He said so while speaking with Zee Business Managing Editor and Market Guru Anil Singhvi where he shared his market view and suggested where to invest in the current circumstances.

Talking about the market updates, Mukherjee said, India's economy is rebounding well, and the prospect for corporate profitability is also doing well.  The revenue of all good firms is increasing by 20% to 25%, while the profitability is increasing by 25% to 30%. He advised concentrating on these and making money in the market.

Mukherjee suggested investing in high-quality companies.

He said he is very bullish on good lenders like HDFC Bank, Kotak Bank, Bajaj Finance, Avas, Chola Mandalam. 

The Marcellus Investment founder said the balance sheet of these companies is growing with good numbers in post covid. The loan book is nearly growing by 25%, and the credit quality stress is now completely vanished. 

Credit collections are now at their pre-covid levels. So, there is a benefit in investing in good lenders. Also, in the last two years (8 quarters), PAT and profit are approximately increased by 50% and share price increased by 4%-5%. This is a very good opportunity to invest in strong leaders.

His second favourite sector for investment is building material companies in the real estate. He said that the stir in the Presidential real estate sector has increased a lot and that's why all the top lines of building material play like Astral Poly, Asian Paints, Berger Paints, Pidilite, are growing by 25%. And these franchises have the capacity to observe the input cost pressure.

And the third sector where Mukherjee has invested a lot and is looking forward to doing it again is specialty chemicals. Midcap portfolio includes Alkyl Amines, GM Modular; small-cap portfolio includes Fine Organic. Mukherjee is seeing a huge opportunity in the supply chain of specialty chemicals and FMCG. Revenue growth is around 20% - 25%. The supply chain is having a little problem but despite this, big money can be made in specialty chemicals in 2-4 years.

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