ET NowIn a chat with ET Now, Prakash Diwan, Director of Altamount Capital Management, shares his views on the market. Excerpts:
ET Now: We are not really paying attention to too many levels, but directionally the markets seem to be rather positive. Is that the view you would also concur with on the fundamental side?
Prakash Diwan: Yes, unlike the last quarter results phase where even good numbers were ignored and bad numbers were punished, here we are rewarding the good numbers disproportionately in a much more favourable way.
Look at HDFC, Idea, Exide, etc. Very clearly, the slightest of improvement in numbers and people want to accumulate the stock wholeheartedly. And importantly, in terms of levels, we are ignoring global cues. We have outperformed all world indices for the simple reason that it has become a pure domestic play at this point in time.
Thus, money is chasing Indian stocks. Quality stocks are getting disproportionately rewarded and the momentum could continue as we move deeper into the earnings season. Hopefully the earnings season will not have too many disappointments going forward as well.
ET Now: Give me a best idea as to how you are allocating money.
Prakash Diwan: We have identified two midcap stories. The first one is Navin Fluorine International - stocks that is not very liquid, but has tremendous potential in terms of what the management share has come through. The management has started getting slightly more articulate of late and the story is unfolding to be a blockbuster of sorts. They are also benefitting in the same way any CFC producer would as we get closer to the ban. It could probably be in triple digits in about 12 months period.
The second one is India Glycols - similar background, but we have known this company for a long time. It is a great MEG producer, but the business that it set off for itself wherein they supply to Bacardi as white spirit producer, has kind of become very profitable for them as well as their own network of CSD sales on the liquor side. If the government were to increase ethanol allocation within the consumption of diesel, you also probably have a kicker coming in for India Glycols on that.
ET Now: We are not really paying attention to too many levels, but directionally the markets seem to be rather positive. Is that the view you would also concur with on the fundamental side?
Prakash Diwan: Yes, unlike the last quarter results phase where even good numbers were ignored and bad numbers were punished, here we are rewarding the good numbers disproportionately in a much more favourable way.
Look at HDFC, Idea, Exide, etc. Very clearly, the slightest of improvement in numbers and people want to accumulate the stock wholeheartedly. And importantly, in terms of levels, we are ignoring global cues. We have outperformed all world indices for the simple reason that it has become a pure domestic play at this point in time.
Thus, money is chasing Indian stocks. Quality stocks are getting disproportionately rewarded and the momentum could continue as we move deeper into the earnings season. Hopefully the earnings season will not have too many disappointments going forward as well.
ET Now: Give me a best idea as to how you are allocating money.
Prakash Diwan: We have identified two midcap stories. The first one is Navin Fluorine International - stocks that is not very liquid, but has tremendous potential in terms of what the management share has come through. The management has started getting slightly more articulate of late and the story is unfolding to be a blockbuster of sorts. They are also benefitting in the same way any CFC producer would as we get closer to the ban. It could probably be in triple digits in about 12 months period.
The second one is India Glycols - similar background, but we have known this company for a long time. It is a great MEG producer, but the business that it set off for itself wherein they supply to Bacardi as white spirit producer, has kind of become very profitable for them as well as their own network of CSD sales on the liquor side. If the government were to increase ethanol allocation within the consumption of diesel, you also probably have a kicker coming in for India Glycols on that.
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