“What’s happening is that the market is Becoming very narrow and is searching for pockets where the downside is limited. It’s also looking for certainty in earnings growth. Even companies that posted strong earnings in the first quarter -bone harbor or those Earnings—Am Getting Punished, “Says Anshul Saigal, Founder, Saigal Capital
I can’t take my eyes. I can’t remember the last time that the share rose by around 4%. It is already acting around the 920 level.
Anshul Saigal: Yes, the insurance space in general – and this company in particular – has delivered robust figures. The prospects they have shared has generally been quite strong. As a result, the sector receives some momentum in terms of price valuation. What we have also seen is that these shares have largely been nowhere for the most of the past two to three years. They have consolidated, ownership is limited and there is room for new investors to step in and buy. With the positive comments we see that playing in real time, which leads to this price rating. So it is really a combination of strong comments, good results and low property.
Is there a tactical trade in FMCG or staples across the board, or would you like to propose to avoid them, given the mixed bag with results where not every company has delivered strong figures?
Anshul Saigal: What happens is that the market becomes very narrow and is looking for bags where the disadvantage is limited. It is also looking for certainty in the growth of profit. Even companies that have posted strong income in the first quarter – but have not given clear guidance on the sustainability of that income – are punished. We see shares fall by 5-6%, even with good numbers. On the other hand, companies and sectors where growing is clear and that have a more defensive nature, the investor’s interests. This is typical behavior in a nervous, uncertain market. We see this playing, even in the consumer step lesson segment – the stocks do not fall much despite lukewarm comments, because the market wants to be attracted to these names to minimize the downward risk.I would like to explore a different consumption area – discretionary editions and leisure. A stock that is doing very well after a strong Q1 performance is PVR-Inox. It had risen 4% yesterday and today another 3%. What do you think of this theme – discretionary spending on leisure, travel, tourism – and how do you see this trend designing?
Anshul Saigal: Traveling and tourism are currently extremely strong. We witness a trend that has been in the making for a long time. Most of the last decade – between 2010 and 2020 – there was not even a play in that segment. It took almost 15 years for the hotel rates to return to their 2008 level. That shows you in the size of the consolidation that this sector has undergone. Now that we come from that phase, there is a considerable amount of catch -up potential for us. We believe that this trend will continue for a long time.
I can’t take my eyes. I can’t remember the last time that the share rose by around 4%. It is already acting around the 920 level.
Anshul Saigal: Yes, the insurance space in general – and this company in particular – has delivered robust figures. The prospects they have shared has generally been quite strong. As a result, the sector receives some momentum in terms of price valuation. What we have also seen is that these shares have largely been nowhere for the most of the past two to three years. They have consolidated, ownership is limited and there is room for new investors to step in and buy. With the positive comments we see that playing in real time, which leads to this price rating. So it is really a combination of strong comments, good results and low property.
Is there a tactical trade in FMCG or staples across the board, or would you like to propose to avoid them, given the mixed bag with results where not every company has delivered strong figures?
Anshul Saigal: What happens is that the market becomes very narrow and is looking for bags where the disadvantage is limited. It is also looking for certainty in the growth of profit. Even companies that have posted strong income in the first quarter – but have not given clear guidance on the sustainability of that income – are punished. We see shares fall by 5-6%, even with good numbers. On the other hand, companies and sectors where growing is clear and that have a more defensive nature, the investor’s interests. This is typical behavior in a nervous, uncertain market. We see this playing, even in the consumer step lesson segment – the stocks do not fall much despite lukewarm comments, because the market wants to be attracted to these names to minimize the downward risk.I would like to explore a different consumption area – discretionary editions and leisure. A stock that is doing very well after a strong Q1 performance is PVR-Inox. It had risen 4% yesterday and today another 3%. What do you think of this theme – discretionary spending on leisure, travel, tourism – and how do you see this trend designing?
Anshul Saigal: Traveling and tourism are currently extremely strong. We witness a trend that has been in the making for a long time. Most of the last decade – between 2010 and 2020 – there was not even a play in that segment. It took almost 15 years for the hotel rates to return to their 2008 level. That shows you in the size of the consolidation that this sector has undergone. Now that we come from that phase, there is a considerable amount of catch -up potential for us. We believe that this trend will continue for a long time.
Regarding cinemas and films, it becomes very situational. If good films play, we have seen one or two that new actors have made in night stars – then the sector will get a boost. But in general I don’t see this space as a secular buy in the long term. OTT platforms have a real impact. Even when I personally go to the cinema – as recently, I watched that Formula 1 film – the hall was half empty even though it was a fantastic film. That tells you that there is interest, but it clearly decreases. That is why I would not be a structural or long -term bull on this space.
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