Speaking to ET Now, Mehta said the changes appear “marginal” and are mainly aimed at reducing brokerage costs for cash and derivatives transactions. “Institutional brokerage represents a very small portion of total revenue for listed brokers, so the hit will be minimal,” he explains.
Commenting on Lenskart’s much-awaited IPO, Mehta called it a “subscribe and flip” opportunity.
“It will likely follow the same pattern as Nykaa, Mamaearth or FirstCry: pop, correction and then gradual recovery once fundamentals catch up,” he said, noting that high valuations could limit long-term upside potential.
The viability key of the mutual fund industry for Sebi
Mehta noted that SEBI has always been cautious in maintaining the profitability and viability of the mutual fund industry.
“Mutual funds are one of India’s biggest success stories in the capital market, and SEBI would not want to disrupt the ecosystem through over-regulation,” Mehta said, adding that AMCs have done a “fantastic job” of channeling savings into equities in a safe and organized manner.
The cement sector is recovering; Profit close to record level
Commenting on corporate earnings, Mehta said cement companies such as Shree Cement and UltraTech have regained lost ground after several weak quarters. He added: “Earnings are back near quarterly highs and expansion plans are more muted, which could provide price discipline. However, it remains a commodity business and valuations appear reasonable. We maintain a neutral stance.”
NBFCs and private banks are over-owned; cautious look ahead
Mehta turned cautious on the banking and NBFC sector, warning that the sector is now “overcrowded” by investors.
He noted that pre-provision profits at major banks such as HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank have remained largely flat, which he termed ‘alarming’.
“Net interest margins will remain under pressure. Provisioning is not leveling off and returns may lag the Nifty in the long run,” he warned.
Among lenders, Mehta favors public sector banks (PSBs) such as Bank of Maharashtra, Punjab & Sind Bank and IDBI Bank, which he says are entering a new phase of growth with improved asset quality and better technology platforms.
Renewable energy equipment makers, automotive stocks as bright spots
Mehta is optimistic about India’s renewable energy and capital equipment cycle, especially solar and wind equipment makers such as Waaree Energies, Premier Energies and Vikram Solar.
“These companies are expanding their capabilities, have strong order books and are now trading at more reasonable valuations following earnings improvements,” he said.
He also remains positive on auto stocks and names TVS Motors, Maruti Suzuki and M&M as strong performers.
“TVS delivered an impressive quarter, and the overall auto market offers solid trading opportunities,” said Mehta.
Cautious with commodities and consumer shares
Despite the rally in metal stocks, Mehta warned investors against buying at peak levels. “It’s a cyclical game: timing matters. Metals are best avoided now,” he said.
On consumer stocks, Mehta said Bata India remains a avoid, indicating continued weak profitability. Instead, he favors Metro Brands and Campus Activewear, which could benefit if consumer sentiment improves.
Logistics game: beware of BlackBuck (Zinka Logistics)
Among logistics companies, Mehta highlighted Zinka Logistics (BlackBuck) as an innovative midcap player to watch.
The company provides digital services for the trucking industry, including FASTag payments and freight management. “It has created a lot of wealth and fits well with the logistics growth theme,” Mehta said, revealing that his company has a stake in the company.
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