There is significant improvement in volumes across the board for commodity stocks, ferrous, non-ferrous and prices as well have gone back to pre-COVID levels, Dipan Mehta, Director at Elixir Equities said in an interview with CNBC-TV18. He is positive on the sector.

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According to him, Vedanta is such a major player within the metals industry, and so will benefit from a cyclical upswing in the prices and volumes. These are high operating leverage business, so as and when revenues go up, profits will rise even sharply, he said. “I am quite positive on Vedanta,” Mehta said.

On consumer durables, Mehta said the best way to play rising consumer and changing demographics in India was through shares of consumer appliance companies. A lot of consumer appliances are now in higher demand than they were before, he said.

“There is a lot of choice as far as the consumer durable companies are concerned and investor should have a specific strategy as to which categories they want to be in and have a few holdings over there in their portfolio,” he said.

First Published:Oct 13, 2020 9:46 AM IST