Vetri Subramaniam, group president and head-Equity, UTI Asset Management, on Friday said that companies with understated growth potential are good investment opportunities.

"My inherent bias is to look at those areas to see where the companies are where the market is completely underestimating the growth potential," said Subramaniam in an interview with CNBC-TV18.

“Always look at areas when there are problems because when problems emerge, the stocks in that space tend to get cheaper in terms of valuations; the implied growth expectations tend to collapse which make them attractive. Also when a sector goes through significant pain, the stronger names which manage to come through that difficult period end up growing faster as things start to normalise," he added.

Talking about the corporate tax cut and expectations of a personal income tax cut, he said, “The hope is that whatever they (the government) do to the entire tax structure, it should not be piecemeal. Would like to see more holistic implementation of the direct tax code rather than pick and choose single elements just to keep a different segment of either the larger citizenry or the markets."