What is Saurabh Mukherjea buying in the current fall?

He mentioned real estate, construction and capital goods ancillaries are the key sectors to watch out for in the coming months.

Saurabh Mukherjea is the Founder and Chief Investment Officer of Marcellus Investment Managers. In a recent interview, he has discussed what companies and themes he buys in the current fall.

Saurabh Mukhrejea eyeing quality financials in the current fall!

Quality financials, as he has been saying. There is an economic recovery. He is up on the road with a team meeting business people in small towns in north India. The economic recovery is gathering hold and high-quality financial services companies are a straightforward vehicle for profit from the recovery.

As discussed last year as well, the real estate construction boom further picked up steam and he is looking into the construction materials space.

The third area where they have been scouting for deals with the capital goods cycle; capital goods ancillaries where valuations are very reasonable and well-run companies are available at bargain prices. As the surge in economic recovery catches further traction, the post covid unlock leads to ports, hotels, schools filling up. They will see very tangible upward movement in earnings growth over the next two to three quarters and we want to benefit from that.

What is his view on IT stocks across large, mid and smallcap? 

Among IT services, TCS has the largest position. They carry on building that position because the order books of all the Indian IT services companies are growing. So with order books being not a concern, they are focusing on the supply side companies which have a steady stream of talent. Talent scarcity is a big issue in Indian IT. So, TCS among large caps and L&T Technology Services in their midcap Rising Giants portfolio are their main positions in IT. They also have Info Edge in their Rising Giants portfolio and given the stellar track record of Info Edge over the last 5, 10, 15, and 20 years in building great franchises, they are continuing to add to their Info Edge positions. 

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