“The banking sector and the BFSI sector have taken a beating. It’s the only major sector I can think of that is trading below long-term valuations and where the fundamentals and growth are still good. And you don’t “We can’t see the economy growing quickly without the big financial sectors participating, because someone has to finance the growth,” he said.
Earlier, UTI AMC CiO Vetri Subramaniam had shared a similar view on the sector. “My main appeal to the banks and the financial sector would remain that these are some of the best balance sheets that we have seen in the banking sector for almost 20 years…I would still be quite positive about the banking sector in terms of potential – not just outperformance but absolute returns over a two-year perspective,” he said.
Mantri also finds the electronics manufacturing services sector interesting. However, this is a bottom-up story, with some companies facing execution challenges and others doing a great job. He also sees potential in the power sector given the massive investment cycle, particularly in renewable energy.
The infrastructure, real estate and capital markets sectors are also doing well, he noted.
Overall, it currently finds more value in large caps than in mid or small caps.
Mantri also spoke about WhiteOak Capital’s upcoming Special Opportunities Fund, which currently manages over ₹6,000 crore in funds.
The idea of the Special Opportunities product is to closely follow the special situations emerging in the Indian market and take a contrarian point of view. “It will be more opportunistic because it goes against the grain, and in many positions it will be more value-driven than our usual style.”
The fund allocation date is June 4, when election results are expected. It was timely, given the fact that the elections constitute a special situation, he added.
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