Opportunities emerge across market segments, investors should think long-term, says Gurmeet Chadha
Weighing in on this debate, Gurmeet Chadha, Managing Partner and Chief Investment Officer at Complete Circle Consultants, shared his perspective on X, urging investors to adopt a medium- to long-term approach and focus on accumulating fundamentally strong businesses regardless of size.
Chadha recently shared his views on market valuations and investment strategy, emphasizing that opportunities exist across the entire market spectrum and advising investors to focus on the medium to long term.
In his post, he noted that nearly 55%–60% of small-cap stocks are trading at valuation levels comparable to those seen during the COVID-19 period, suggesting a potential opportunity zone from a historical valuation perspective.
He pointed out that investors should look beyond the cap-size classifications and focus on identifying quality businesses across the board.
Link: https://x.com/connectgurmeet/status/2015323759071343033
Chadha also highlighted the case of HDFC Bank. According to him, if one were to exclude the value of HDFC’s stakes in its various subsidiaries and investment arms, the standalone market capitalization would be around Rs 12 lakh crore.With the projected profit after tax (PAT) for the next financial year estimated to be in the range of Rs 82,000 crore to Rs 85,000 crore, standalone, the stock is currently trading at a price-to-earnings (P/E) multiple of just 12–13 times.
On Reliance Industries, Chadha stated that the valuation of Jio Platforms alone during its IPO period was estimated at between $150 billion and $160 billion. In contrast, the entire market capitalization of Reliance Industries today stands at around $200 billion, according to his post.
Against this backdrop, he urged investors to adopt a medium- to long-term outlook and consider accumulating quality businesses even during periods of market downturn.
“Isn’t easy when u see red, but it will be worth it,” he wrote, underlining the emotional difficulty of investing in falling markets but emphasizing its potential rewards over time.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
