When asked about the ongoing debate around private banks versus public sector banks (PSBs) and the government’s recent disinvestment in Bank of Maharashtra, Joshi highlighted a balanced approach.
“So, it is a mix and blend of both. So, within the large private names, ICICI Bank is something that we still continue holding on in our local and global portfolios. Within PSUs, State Bank of India and Bank of Maharashtra is something we continue holding as well,” he said.
He elaborated on the banking thesis, noting that banks with minimal CASA deterioration in the recent quarter are likely to benefit incrementally in the upcoming periods. Joshi also emphasized the importance of the advanced deposit mix and monitoring the growth of unsecured lending, as rapid expansion could increase risks related to slippages and SMA-1/SMA-2 accounts.
“Provisioning still remains relatively stronger on most bank balance sheets and therefore, within the sector itself a few of these banks in our opinion looking at rating, ranking, institution holding, the CANSLIM parameters that we follow might do well. So, being a little selective, but our take is that selectively banks will perform well as we head into the next few quarters,” he added.
On the infrastructure sector, Joshi highlighted opportunities remain, albeit selectively. He pointed out that road companies like KNR and PNC Infratech have seen valuations compress close to book values, mainly due to margin pressures, though order books remain strong. He also mentioned companies such as NBCC, HCC, and Patel Engineering, noting fair execution and decent order books.
“A good way to play the entire infra/manufacturing theme if you probably leave aside a few of the past stocks which you probably like or as a theme including EPC players, transmission players, I think cement players can be a good proxy to the whole argument. ACC as an example, valuations extremely cheap, it is making a very good base as we speak at Marketsmith India the way we analyse charts and therefore, from a volume perspective expected to be reasonably stronger as we head into the next few quarters,” he said.
Finally, Joshi shared his view on Asian Paints, highlighting strong numbers in Q2 and positive prospects for the coming quarters.
“Typically, from a paint industry volume growth perspective, it probably mirrors the nominal GDP growth and therefore expectations of a 10% to 12% volume growth is something that one can build in over the next few quarters in the next couple of years,” he noted. He added that a significant portion of the market remains unorganised, leaving room for organised players like Asian Paints to expand further. Cost moderation and strong product suites make leadership stocks like Asian Paints appealing, according to Joshi.
“Anybody holding Asian Paints should continue holding it,” he concluded.
As markets continue to navigate evolving economic conditions, Joshi’s insights underline the importance of selectivity and careful evaluation of fundamentals across sectors.
