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Ram G then tell us what excites you I mean uh if we simply uh you know try and marry the two where there is underlying momentum growth business potential and valuations have not turned completely sort of out of whack what where is that uh you know that space in the market if you see it at all yeah so uh should be one of the thing is that newer opportunities are coming up like say all these digital companies digital companies where kind of a uh not down and out but we out of fa so all the psus were another segment which was completely beaten down at some point of time and became darling of the market right now say banking sector is uh completely out of I mean it was darling of the market for decades and that's where the FI put a lot of money and today it has not done well because they have also sold a little bit of it but when you look at the fundamentals I mean I was looking at my presentation and there one of the slide is about the quality of uh quality of uh npas or quality of assets uh credit quality in the banking system has been I think right now it is the historically the best and is becoming even better and if you look at it while the business is growing at 15 60% and quality of asset is the best and it is likely to remain better as we go forward and yet the valuations are at the lowest so I think the market does this funny thing uh so and that that that is what throws you opportunity so I would think that uh uh you have to be little contrarian or little you have to buy into something which is unpopular but you have conviction so uh so that's that's what and it's not that all the sectors 50 60 sectors it's not that all of them are uh uh in unreasonable version uh there are 10 15 sectors or segments which are uh reasonably priced or mis underpriced I think that's where you have to pick up the stocks and and which one of these uh would you like the most you're saying there're about maybe 10 to 11 SE at least which are still reasonably priced out of these 1011 which would which be the would be the ones that you like the most R uh I would I would look at still bfsi in that Capital Market as I uh uh also have told Capital Market still looks very exciting you look at last month demed addition it was almost alltime High 4 and a half million so the way market is expanding the the way flow is I think Capital Market guys they're still uh I think they uh the the growth in the segment is going to be quite significant and it is going to be very high quality a satellite so I would think the banking the private sector Banking and bfsi they look to be good even insurance is looking up very well but uh there are other segments in manufacturing and all one can look at it but uh since I'm not that flu down to the today stock picking I would think that this sector is close to my heart and they look to be good and is slly uh and for the Capital Market space a lot of the chatter was you know Regulators trying trying to slow down uh trying to put some breaks right through all these regulations in the fno side and yes you think that is now that bump is behind or what's speed bump not a bump but speed bump is behind or uh and and uh does that cause any worry at all could there be more coming what's what's the sense taxation went up the market hardly noticed but uh I mean it is happening right some of these speed Breakers are being put in yeah yeah so I think uh Regulators are putting some restriction on the expansion of the EO Market uh but there is lot of see it is about the energy the the participation the money is coming in the market now whether it goes into fno whether it goes into Cash Market see once the restrictions come then only players will decide what is going to their new game because the money is there money is pouring in so I would think that with a little little break in terms of volume expansion for a quarter or two uh and Market will get adjusted to the lower earnings lower volume whatever but uh uh I I would think that in a year or 2 years time even with the new restriction we'll see alltime new high in terms of revenues and profits from the players because uh Regulators can restrict the volumes or who should play or what should be the lot size and things like that but uh what the entrepreneurs will do in response to that that is yet to be seen so I would REM if the business is growing participation is more funds are flowing I would think uh the Capital Market in in general uh despite Regulators concern will do very well right uh you know on uh taking going back to the zato point itself quick Commerce as an opportunity is a large opportunity everyone's talking about the sort of uh you know runway for growth that there is but increasingly there are more competitors raising a fair amount of funds as well flip cart started flip cart minutes for instance zepto raising funds at break neck Pace out there uh so do you think the Strategic significant advantage of zomato in that will continue or at some point it becomes a two three player Market even today it is two three player Market uh I mean in quick Commerce also you have insta you have blinket and now zepto has zepto is building up very quickly zepto is presenting tomorrow uh very wonderful story to listen to uh there a lot of excitement out there so again you know uh they're all bit away from the serious money making but the pace of growth 100% 80% compounded I think the compounded growth of about 70 80% or even 100% uh I mean just 5 years time you look very three or four years time you look very different and once the operating leverage starts working from say from negative 2% or 3% net margin to 2% 3% 4% net margin you can do the numbers on a large turnover of 105 billion uh the the numbers will and another thing is that it is going to be a very asset like so free cash FL will be very very large economic profit will be high so this is a uh completely different environment different type of companies different growth levels different free cash flow uh and very sustainable visible kind of demand in growing economy today we are a $4 trillion economy in 10 years time you will be $8 trillion economy now in 8 trillion your consumer demand will be at least 3x more than current levels and the players will be only three so the growing demand uh consolidated playing field and then the margin expanding people want convenience in India so I think it's a very exciting time for these companies you know Adit of zepto had said that in the next couple of years they'll be bigger than dmart I just wanted to your thoughts on dmart what are you thinking about dmart because blinket has said they are not gaining any share from dmart or they are not eating into their shares the segment of the audiences are different but if consumption has to increase and value conscious consumption has to increase is dmart an opportunity currently no dmart has its own uh customer base and I think still in they have not covered the geography the entire country so uh I mean if you go to develop Market also uh I think uh this organized organized format stores they have role to play because uh ultimately this quick Commerce online buying and all it can take care of some portion for the convenience but of the buying happens from the stores so I think demart has a different segment and they will keep doing well uh just that uh demart might be growing at 15 20% where these guys are growing at 80 90% And 80% growth is not 4X 80% growth is like 20x so that that has to be uh understood in the mind that uh uh four five times more growth on the top line and bottom line is not forx for the valuation M um Ram I want to get your attention back to Ola I mean how can we not right and I think uh our viewers will really benefit a lot from your wisdom you've seen this for decades and decades right so now here's a new business and I guess timing is also very interesting because we were just discussing zamato zamato has proved to the street that good businesses can come they can come making losses but they can turn around they can have sustainable growth maybe that's also having a rub off effect on Ola uh apart from the scarcity issue that you described right I mean to get good businesses businesses at a good pricing they offered this business at 76 the market is now almost giving them 150 is it getting excessive how should investors look at Ola uh subi I'm I'm sorry to say that but my knowledge on Ola is very limited except that I know that they are clearly leader in their field and uh in two whe particular I have seen being number one uh is very important so on the electric uh Mobility they are clearly number one and they have very dominant share and so that dominant share is what Market is very excited about because still the transition from uh IC to EV is limited uh uh and uh so I think at some point of time it uh as the transition picks up uh uh from uh uh petrol vehicles to uh electric vehicles I think they are there to in cash and their positioning is so strong that it is it is going to be extremely difficult for anybody else to uh uh to uh what do you call dislocate them from the current position that's what Market is saying that okay you are number one and I want to be in my portfolio even if it is expensive that's what I hear I don't think the current fundamentals per se would justify the price one is paying right now you know uh RAM let me ask you about what this means for the traditional big boys right and you have been one of the earliest I think you know persons who picked out hero it was one of the stocks many many years ago that you you singled out now for hero Moto itself the landscape is really changing right you have Ola with this competitive Fierce intensity they're getting into bikes and their bike is starting at 75,000 there is baj which is always a challenger baj is saying we've got a CNG bike now they want to also make inroads into the traditional stronghold of 125 CC below which was hero so for hero Moto a company that you've loved and liked and tracked for so long what is the road ahead looking like see for them both the sides are see one one of the thing is that now the competition in the IC side is not coming in in the sense that new competitors are not coming there are three guys baj hero and TVs they themselves are kind of fighting among themselves so if the market expands and uh and the transition to EV is remains slow in that case they have the entire booty amongst themselves and then on top of it the export Market is also looking up so I think uh they have and also uh at some point of time they'll also become a dominant player on the eeve side uh it's not that Eevee Eevee is left out to Ola or everybody has a Eevee offering and I'm sure they will give tough competition but it this is the this is the problem of the what you call winners curse you know when you are so good with the old technology it is become it becomes very difficult to get into a new one yeah ramu let's wind this conversation down politics is back right on the anual uh the last election results didn't did barely sort of caused any breaks but now we got State elections although we don't have the date for Maharashtra yet uh but we do have it for harana Jan K yeah uh and and uh what's your sense do you think uh Maharashtra is a big one maybe it'll have a little later uh but they'll have to do it because the assembly uh sort of you know session ends on the 20 I think it's 25th of November if I'm not mistaken so they have to do the elections uh I think first of October and then maybe mid October maybe a little later what's your sense could it could it be a market moving event in that sense uh because it's not very far away I would I would not be I I I don't think so I mean if if the uh Central election where uh where the ruling party lost its major and we got in into some kind of a coalition government that didn't deter the market I mean what happens to us uh how does a small one state election matter in the sense that yes it is important politically but as far as the stock market is concerned I think we have we have seen and got over it much bigger event than what is ahead thank you very much for joining us Ram we have a fantastic conference and we'll touch Bas in a few days thank you very much
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