Consumer Durables News

money-making ideas: These underperforming sectors of 2022 are likely to emerge as dark horses

[ad_1]

NEW DELHI: The year 2022 so far has seen benchmark indices falling in single digits, with sectoral indices from IT, consumer durables, healthcare, metals and real estate sectors falling in double digits. But if we were to go by analysts, some of these sectors could emerge as dark horses of 2022.

Anand Shah, Head – PMS and AIF Investments,

AMC said metals can be a dark horse. The sector has multiple tailwinds in the form of China’s stimulus, said Shah, which may help stabilise metal prices. There could also be tapering off of domestic export duties, he said. The BSE Metal index has fallen 14.5 per cent year-to-date.

Sorbh Gupta- Fund Manager for Equity at Quantum AMC said he is positive on the IT sector. Gupta said the recent correction in the sector due to recessionary fears are overdone. The order books and deal pipeline of IT companies are healthy, he said, adding that the cost pressure on the talent side is easing, supported by softness in the startup ecosystem.

“Rupee depreciation can also act as a tailwind for margins for the sector,” Sorbh said. The BSE IT has plunged 25 per cent year-to-date and is the worst sectoral performer.

Ajay Vora, EDGE Fund, EVP, Investment Management at

Wealth felt real estate has significant potential to surprise positively, considering solid residential sales and improving occupancy in commercial assets.

This sector has seen considerable consolidation post RERA, GST and finally, Covid impact, he said.

“Residential sales continue to remain strong – with 4QFY22 reporting record sales of 200 million square feet. A combination of improving sales for the real estate sector at large, market share gains for organized developers, and rising real estate prices augurs well for listed real estate developers,” he said. The BSE Realty index is down 10 per cent YTD.

Sandeep Bhardwaj, CEO, Retail,

said he prefers developers with high unsold finished inventory, high OCF margins, and low leverage. Bhardwaj has as his top pick among residential-focused plays.

“FY23 guidance indicates at least a double-digit year-on-year growth in pre-sales and significantly higher launches. Higher interest rates and input costs could dampen industry sales but are likely to accelerate consolidation. As such, registration data for April-May 22 suggests sales momentum remains robust,” he said.

For Abhay Agarwal, Founder and Fund Manager at Piper Serica, auto ancillary could be a dark horse. With the increase in OEM and replacement demand and a fall in commodity prices, Agarwal said, the sector can hit a purple patch of double-digit margins and low working capital.

Sumit Chanda, CEO and Founder, JARVIS Invest likes the banking sector. As the economy recovers, he said banks would see improved performance on the back of improved business growth and asset quality. This will only be aided by the festive season in the next few months, he said.

“While the rates are being hiked, I don’t think it will have a material impact on the credit offtake as the demand is expected to soar. We have already witnessed a surge in demand in the real estate sector,” he said.

The BSE bankex is flat for the year, outperforming a 6 per cent drop in the BSE Sensex.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

[ad_2]

Source link