Daily Voice: Green Portfolio’s Divam Sharma capitalising opportunity in new energy space through small players where value still exists
“India is fueling its growth through new energy sources. The sector is getting a lot of tailwinds from the government and big corporates alike,” Divam Sharma of Green Portfolio said in an interview with Moneycontrol.
Hence, he is also capitalising on this opportunity but doing it through small players where value still exists.
With more than 15 years of experience in investment management, Divam sees an upward potential in the FMCG sector. “It’s a defensive sector and is recommended for diversification,” said the Founder and Fund Manager at Green Portfolio, who is currently managing an AUM of over Rs 650 crore and AUA of Rs 350 crore.
Are the IT stocks available at reasonable valuations?
IT recovery is expected to take some time even though the Fed has started cutting rates. However, we have been seeing small Indian IT companies perform exceptionally well despite the global headwinds. This growth is being driven by domestic demand. Rest, we cannot comment on the valuations since we don’t actively track the sector.
Are you betting on the new energy space wherein the large corporates spending big money?
India is in dire need of fueling its growth through new energy sources, the sector is getting a lot of tailwinds from the government and big corporates alike. We are too, capitalizing on this opportunity but we’re doing it through small players where value still exists. In fact, we have just launched a new portfolio centered around green energy too.
Is the IPO market in a bubble territory now?
It definitely is looking like that. The BSE SME IPO index has given 160 percent returns in the last year but that has come with a PE of 65. Every single IPO that’s coming is being oversubscribed in multiples of 100. The SME IPO space in particular is exploding and that is a bit concerning. The investor enthusiasm where everyone is blindly applying for IPOs despite shaky fundamentals is worrisome. That said, we are seeing some stellar ideas and business models coming in spaces like new age sectors, healthcare, and more.
Is it the best time to pick FMCG space?
India’s GDP grew 6.7 percent YoY in Q1FY25, lower than the expected 6.9 percent. Rural consumption saw a dip whereas urban consumption showed resilience. On the back of better monsoons in Q2, we could see an upward potential in this sector. We, as a fund house, do not actively track FMCG but it’s a defensive sector and is recommended for diversification.
Do you think the rate cut cycle in India is shallower than in the US?
Yes, definitely. The situation we’re seeing in the US is a peculiar one driven by a slowdown in demand, increased inflation, and higher unemployment numbers which resulted in back-to-back rate hikes. The US is now reversing those rate hikes. In India, we have an entirely different situation. The Indian economy is much more stable than that of the US. We’re now seeing a recovery in rural demand and that consumption will help maintain the economic momentum.
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Reference Link: https://www.moneycontrol.com/news/business/markets/daily-voice-green-portfolios-divam-sharma-capitalising-opportunity-in-new-energy-space-through-small-players-where-value-still-exists-12828071.html/amp
