Saurabh Mukherjea, Founder and CIO, Marcellus Investment Managers shared his view on the market.   |  Photo Credit: iStock Images
- Economic recovery will provide opportunities for market participates.
- Optimistic on large banks, insurance, big IT service companies and specialty chemicals
Mumbai: Speaking to ET Now, Saurabh Mukherjea, Founder and CIO, Marcellus Investment Managers shared his view on the market. He started by sharing a few challenges businesses will face in 2022, mainly covid and supply chain issues which we have seen in 2021, being optimistic that economic recovery will provide opportunities for market participates.
He shared a noticeable insight as he explained on supply chain issues, that companies with strong balance sheets are holding inventory and raw material for any possible lockdown or logistic bottleneck. This will result in increasing market share of larger companies while will creating pressure on companies who lack resources to hold inventory.
While sharing his view on investment opportunities, he is bullish on strong Lenders as they are more focused on gaining market share. Insurance companies, which will be beneficial from weakening market share of public sector companies, under penetration and opportunity to invest in the financial market. Large IT Services companies, whose peers are finding difficult to recruit. Finally, on Specialty chemicals where demand is higher.
Also, on IPOs listed in CY21, he said that Marcellus is considering investing in a few non-tech Midcap and Small cap companies, with great business, generating strong cash flow.
Adding to investment in the broader market, his focus is mostly on business growth and relatively less on the share price. His view is supported by the expansion plans of business he is invested in and the economic recovery. Although ESG theme will continue in the market, he is concerned about companies that are faking ESG scores.