So where are your biases right now, Aniruddha, because a lot of the things that you own – and I want to talk about specifics – like Trent and Zomato, which are consistently lucrative for investors, and of course we have news on Zomato this morning. But let’s talk about the outperformers and the underperformers, because I think you’re still holding on to some stocks that have not performed as well as the market?
Aniruddha Sarkar: If I start the discussion with the broad sectoral footprint, I would say that’s where the big alpha generation has happened. If I look at the last year, the big alpha generation has come from an overweight to urban consumption. Both the names you have chosen, Tata Trent and Zomato, have been part of your urban consumption story and that’s where I would say the big numbers are coming from.
I am optimistic about urban consumption. If I break down urban consumption into sectors, it is cyclical consumption, which includes the names I mentioned. The other sector is hotels, which have again performed exceptionally well. We continue to see high demand in the hotel sector, the last quarter was weak because of the elections and things like that. But hotels continue to perform exceptionally well.
The third sector that has again given us good returns is the auto accessory space. So auto accessory remains, auto and auto accessory are again good areas where I think a long alpha duration has been achieved.
The fourth part is real estate and ancillary services. So these four sectors are broadly in urban consumption and that’s where the big alpha comes from. The second big broad allocation that I think has really paid off for our portfolios and our investors is in overall industrials and capex. Now when I say industrials and capex, I’m including your sectors like capital goods, engineering companies and energy. You’ve been very bullish on energy and I think that’s a big sector that investors should continue to bet on now because there’s a big energy transformation going on in the country.
We haven’t seen this kind of capital expenditure in the power sector in the country for a long time. So in the industrial sector, you have capital goods, engineering companies and power. And when I say energy, I mean the energy value chain, not just the power generators but your entire supply chain, transmission, distribution, lines, cables, transformers and all these energy EPC players. Also, we have some exposure to the cement companies because if you are bullish on infrastructure and real estate, they are indirectly benefiting.
