Daily Voice: Torus Oro PMS CEO bullish on these 5 sectors for FY25

Nitin Agrawal, the CEO of Torus Oro PMS, recently stated in an interview with Moneycontrol that he is very optimistic about several sectors, including consumer discretionary, industrial and capital goods, infrastructure, green energy, and healthcare.

Nitin, who has over 13 years of experience in portfolio management and investment banking, believes that the healthcare sector has a lot of potential due to increasing disposable income, affordability, advanced infrastructure, growing population, government initiatives, favorable economics, and better operational cashflows.

Are all the utilities stocks still overheated?

The utility stocks were major beneficiaries on account of favourable government policies and infrastructure push. Being a capital-intensive industry, utilities had faced issues in the past on account of rising debts and cashflow mismatches leading to unattractiveness and lower valuations. However, with the tides turning in their favour, the sector witnessed increased participation leading to bullish sentiments.

Though the sector is trading at a premium valuation, we need to keep in mind, that India is at an inflection point and there are a lot of activities happening in this space.

Thus with the announcement and the vision of transformation, the growth trajectory may completely change which may lead to re-rating, making it attractive from a valuation perspective without any red-flag signs of overheating.

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Which are other sectors/stocks still looking overvalued even after recent correction and should participants maintain cautious view on the same?

We believe that valuations have moved much ahead of fundamentals and thus now the actual execution has to do the heavy lifting. There were segments which had witnessed extreme signs of bullish leading to more participation, which finally led to a selloff in the recent weeks.

We feel that companies where the fundamentals are intact and are generating cashflows are on the right path while companies which have touched highs on extreme euphoria need to be stayed away from.

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Where do you want to deploy your money from hereon, concerning FY25 perspective?

Since the mandate is to generate wealth over a long term, short-term noise will not affect the investment philosophy. Having said that, we really look for long-term megatrends and build conviction based on the short term steps taken in order to achieve that vision.

From sector perspective, we are very bullish on consumer discretionary, industrial and capital goods, infrastructure, green energy and healthcare. We have also build positions in our portfolio based on these themes.

Do you think the recent correction indicates that the market is unlikely to go back to new highs soon?

The market itself has been a multi-bagger for a long period after weathering a host of negative events. We believe serious money cannot be made without witnessing sharp drawdowns. Conviction and research will always be tested in the marathon for long-term wealth creation.

Are you betting on the overall healthcare theme?

We are very positive on the healthcare theme mainly on account of increasing disposal income, rising affordability, state of the art infrastructure, growing population, government initiatives, favourable economics and better operational cashflows.

Are the gas distribution companies bottomed out after recent correction? If yes, then should one buy these stocks now?

With a thrust on renewals, gas distribution companies have a huge role to play to make it available to households. We are bullish on this segment.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.