Stories
Largecap Stocks Offer Rare Valuation Opportunity Says Sohum Sanjay Parekh
- •Sanjay Parekh of Sohum Asset Managers believes the recent equity correction has created the most attractive largecap opportunity since the COVID-19 crash.
- •The fund has increased its equity allocation, noting that RBI and government interventions have helped stabilize markets despite global uncertainties.
- •Financial services, telecom, and diversified conglomerates show potential upsides of 20 to 25 percent or more based on internal valuation models.
- •The upcoming Jio Platforms IPO is viewed as a digital technology platform rather than a traditional telecom operator, offering attractive valuations.
Key Questions Answered
Sanjay Parekh states that the recent market correction has created one of the most attractive valuation opportunities in largecap stocks since the COVID-19 crash. He expects strong portfolio returns and notes that sectors like financial services, telecom, and diversified conglomerates offer an upside of 20-25% or more.
Sanjay Parekh advises investors to view Jio Platforms as a digital technology platform rather than a traditional telecom operator. He believes the market underestimates its software, enterprise services, and digital ecosystem, which are supported by strong cash flows and debt reduction.
Sohum Asset Managers increased equity allocation because domestic fundamentals remain resilient despite global uncertainties, and the recent correction has already priced in most global risks. Furthermore, the firm's internal valuation framework shows that expected portfolio returns are at their highest level since the pandemic lows.
