Enam’s Sridhar Sivaram Picks Key Themes In Current Market

Sivaram said value stocks have done better than growth. “Growth, at any price, has gotten decimated. People are digesting now that there should be valuation sanity to any of these growth stocks.”

He is bullish on banks, with a special focus on those with a “good deposit franchisee”.

“Credit costs are much lower than banks have anticipated, they have better profits now,” he said. “We are bullish even on the public sector banks, not just private ones. Credit costs are benign, loan growth is good and valuation comfort is high.”

Not just public sector banks, Sridhar said they are also looking at public sector companies in general. “We found them to be trading at extremely deep cyclical valuations.”

In the defence segment, Sridhar said Enam Holdings is not limited to public sector companies. “The government has started to enforce the offset clause. Basically if an MNC has a large defence order from an Indian company, then 30% of that has to be manufactured in India,” he said. “And a lot of transfer of technologies have also happened. So we’re seeing many companies in that space.”