The outcome of the Bihar poll has already been priced in by the markets: Dipan Mehta

As election results trickle in in Bihar, markets appear largely unfazed, with most investors viewing the political event as a known variable rather than a trigger for volatility. Speaking to ET Now, Dipan Mehta, Director, Elixir Equities, emphasized that the outcome has already been absorbed by the Street.When asked if he expects turbulence on the counting day, Mehta said, “No, the results are more or less in line. I see that the NDA is almost ahead and that has also been left out because of the Exit Polls, so it is another event over and done with some reforms or some steps that the government would like to take. They will come out with those steps and reforms now that the Bihar elections are over. So the market will receive it. Positively, but don’t expect too much upside potential because of this specific event. It’s more or less priced in.”

Now that the political overhang is fading, attention is shifting to the recent quarterly figures, especially among consumption-driven companies. Several players, including Jubilant FoodWorks and Page Industries, noted subdued demand trends. However, Mehta believes the softness is temporary.On consumption commentary, he explained, “On the consumption side, the biggest event that happened in September, that particular GST and the announcement that was made for it, caused some of the sales to be rolled over into the next year. And look, the markets are thinking ahead. Every company worth their salt said that this particular festive season has been exceptionally good.”

He added that the focus should soon shift to December quarter performance, with several tailwinds starting to align:

“The September numbers may be a bit weak for a number of reasons, but an improvement in consumer sentiment, better monsoon, tax cuts, income tax and GST, lower interest rates, all this should certainly lead to a significant improvement for most consumer-oriented businesses. I think the less penetrated the category, the better the opportunity for returns from an investor’s perspective.” underpenetrated categories have better long-term potential. The conversation then shifted to LG Electronics, whose recent numbers have been weak on revenue, EBITDA and profit. Mehta dismissed the concerns, noting management’s explanation:

“Yes, having said that, but if you read the management commentary, they have clearly said that because of the GST cut, a lot of sales have been pushed and next year, next quarter, I think sales have really picked up for LG as well. So I’m not too concerned about these soft numbers.”

He called LG a “secular composite story” and argued that the company remains attractively valued compared to peers such as Havells, Blue Star or Voltas.

On the commercial vehicle sector, Mehta struck an optimistic tone. With stronger demand expected in the second half of the year, he sees two clear leaders.

“Both Ashok Leyland and Tata Motors are going from strength to strength and it is a reflection of the market opportunity,” he said. An increase in CV sales, he noted, generally signals broader economic expansion.

He added: “The reduction in GST rates has certainly benefited these companies as well and they are on track to achieve some sort of double-digit revenue growth, which would result in “high teens”-like revenue growth in the next few quarters.”

According to Mehta, valuations remain reasonable and management comments within the car package are optimistic. For investors looking for exposure to economic recovery themes, he believes both Ashok Leyland and Tata Motors’ commercial vehicle division continue to offer promising upside.