Biggest challenge for most companies is to generate demand in current environment'
'India Mart is a platform that provides the ability to companies to generate demand'
'See opportunity in pharma players making APIs and specialty chemicals'
Mumbai: Coronavirus pandemic has brought an unprecedented level of monetary and fiscal response both globally and locally, however this unprecedented liquidity unleashed by global central banks is yet to find its way fully into emerging markets.
But, If recovery is worse than expected or virus takes more time to come under control, markets may remain at the same level or we may see a double-dip, I think all of those scenarios are possible”, believes Sumeet Nagar, MD, Malabar Investments.
In an exclusive interview with Nikunj Dalmia, Managing Editor, ET NOW, Sumeet said, “Markets that saw a steep correction in end-March, the start of April were a stock pickers dream as valuations in small and mid-cap companies fell to lowest since the financial crisis and in some cases even below that”.
He said that there is an opportunity in companies where share prices have fallen more than the intrinsic value of the business and he prefers to buy businesses where there is predictability and resilience.
Future has actually come forward for new economy businesses and the current crisis is a great opportunity for companies like Affle India and India Mart. Sumeet said, “Affle, I think is a great opportunity as we have more no of users transacting online & more no of advertisers who would want to acquire those customers and ‘Affle India’ can play a very important role in making that happen”.
Sumeet believes that the biggest challenge for most companies in the current environment is to generate demand. “India mart is a platform that provides the ability to Cos to generate demand and people are willing to pay a price for that. So I think the importance of India mart in the minds of its customers has only gone up. Yes, there will be some impact in the current quarter / financial year but I think in the medium term the opportunity has only gone bigger”, he added.
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