Indian benchmark indices, Sensex and Nifty closed a percent higher Thursday led by strong gains across the board, amid positive global cues. Deepak Shenoy, Founder of Capitalmind analysed the quarterly performances of the big names that announced their results today as well as are going to come out tomorrow.

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In the telecom sector, according to him, the average revenue per user (ARPU) increase is an indication that telecom players are willing to consider price increases. He disclosed that he owns Bharti Airtel and Reliance Industries Ltd (RIL).

“This might be interesting. You do have a feeling that if Reliance keeps the prices low, no other players can increase prices – Bharti Airtel is going against this and it has in the last few months. We own Bharti, we also own Reliance. So we are betting on the two of them getting maximum market share here.”

UltraTech Cement reported a sharp 114 percent jump in its consolidated net profit for the quarter ended June 2021 at Rs 1,700 crore as compared to Rs 794.2 crore in the year-ago period. However, the cement major is an "avoid" for Shenoy.

“I have not invested in UltraTech Cement. The next quarter is full of rain. So that usually doesn’t do well in sales. For me, it is mostly an avoid, most cement companies are,” he explained.

“Given the structure of the market, if there is a big real estate recovery, we will change our mindset but in general we are avoiding cement at this point of time,” he added.

Bajaj Auto today reported a sharp jump in earnings for the first quarter of fiscal 2022 owing to a lower base with revenue in line with estimates and net profit and margin missing estimates. According to Shenoy, the two-wheeler space is a very exciting space for the next three-four years.

“Two-wheeler is going to see a recovery in our opinion,” he shared.

He believes Hindustan Unilever Ltd (HUL) is a good story but he isn’t investing.

“I think it is very expensive. For this kind of growth, I wouldn’t pay this kind of valuation. Overall, not interested in expensive fast-moving consumer goods (FMCG). HUL is still at 70 times earnings for what is a 12 percent company. It is a good story but not investing,” he mentioned.

For the full interview, watch the accompanying video.

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(Edited by : Abhishek Jha)

First Published:Jul 22, 2021 5:44 PM IST