S Krishnakumar News Today

S Krishnakumar shares insights on market performance, cautioning on high valuations and potential earnings surprises in auto ancillaries. He highlights megatrends in renewables, e-commerce, and manufacturing, stressing the need for strategic investment timing. Krishnakumar further says that "opportunities are very rare to come by where there is a lot more comfort in valuation. This is a market which is well priced in ."

Are Indian equities overvalued, what’s the interest rate outlook, what themes will play out in 2024, which sectors could do well, what risks lie ahead for investors? The founder of Lion Hill Capital and former CIO-Equities of Sundaram MF answers these questions and more

S Krishnakumar says: “I think consumer durables, building material, home improvement have been spaces where in the next couple of years, we will see very substantial growth and we would see the benefits of margin improvements coming through as the demand situation improves. Even in a big bull market, we will have substantial corrections of 8-10% happening every year across the next five years also. But I think the point is to be invested and ride the growth in earnings and compound your ...

S Krishnakumar says: “Definitely this year has been quite a bit of surprise aided by expansion in operating margins. Nifty earnings probably would be upwards of Rs 1000 at this point for FY24. So, if you run forward one-year, two-year earnings, we should be around Rs 1,115 on a one-year basis and about Rs 1,280 on a two-year forward basis and discounting the current multiples.”

“Given the high interest rates, a fair bit of allocation that has shifted to debt instruments and given the kind of risk-off globally, a bit of a move into gold and other precious metals is also happening at this point in time. However, a substantial portion of our assets remain invested in equities and that share will rise as stock price correct.”

Industry officials in Coimbatore have emphasized the need for a holistic approach and long-term vision in the textile and clothing sectors to capitalize on global market opportunities. The industries are major contributors to employment and revenue, but have faced challenges such as raw material issues and high production costs. The Southern India Mills Association aims to address these challenges and enhance global competitiveness.

Sima: Industry officials in Coimbatore have emphasized the need for a holistic approach and long-term vision in the textile and clothing sectors to capitalize on global market opportunities. The industries are major contributors to employment and revenue, but have faced challenges such as raw material issues and high production costs. The Southern India Mills Association aims to address these challenges and enhance global competitiveness.

“I look at everything from wheels to braking systems to vehicle interiors, sensors, air conditioning and other stuff which are going to be quite operative in both kinds of vehicle zones. Focus on those kinds of companies where there is no perceived threat to the business basically.”

"Given relatively cheaper valuations, go for consumer durable stocks . Also, in the textile space, we have seen a lot of value destruction with falling cotton prices. Now there is a lot of improvement in spreads and and we should be getting good traction going forward. In various sectors like auto ancillary, engineering etc, companies affected by specific events are bouncing back and we should look at those kinds of stock specific sectors."

The decision to transfer him was "punitive in nature" and "unfair", the court said.