Tag: Envision Capital

Home sales soar to 15-year high, driven by strong mortgage loan demand, says Envision Capital

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The real estate space is showing signs of a significant revival, emerging from a long period of stagnation. Home sales have reached a 15-year high, indicating a resurgence in demand for residential properties. This positive trend in the real estate market bodes well for the overall economic recovery and is likely to have ripple effects on related industries.

In an interview with CNBC-TV18, Nilesh Shah, MD and CEO of Envision Capital discussed the current state of the real estate sector and shared his insights on the performance of some key stocks in the portfolio.

The surge in real estate sales has been complemented by a robust demand for mortgage loans. Shah emphasised that the demand for mortgage financing is remarkably strong, which further supports the notion of a recovering housing market. The availability of easy credit and attractive interest rates is likely to fuel the housing demand and stimulate the broader economy.

“We think the entire residential property market and home improvement is currently booming. Demand for mortgage loans is very strong. About a fortnight back JLL (a prominent company that focuses on providing professional services in real estate and investment management) came out with a report which said that sales of homes are up 21 percent year to date, from January to June, and homes sales are at a 15-year high and that is translating to strong demand,” Shah said.

When discussing the investment strategy, Shah revealed that Envision Capital has a long-standing position in Kolte Patil, a prominent real estate developer. Furthermore, the recent addition to the portfolio was Stylam Industries, a company known for its innovative laminate products.

Additionally, Envision Capital has held shares of Polycab, a leading electrical cables manufacturer, for three years. Shah expressed optimism about the company’s prospects, predicting that it would deliver strong performance and maintain healthy profit margins.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Good time to accumulate ‘high-quality’ IT stocks: Envision Capital

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nilesh Shah, MD and CEO of Envision Capital said on Tuesday, September 27, that it’s a good time to accumulate IT stocks.

“Do not expect IT to be an underperformer from hereon and it’s a good time to start accumulating a lot of high-quality growth-oriented IT stocks.”

Shah expects select IT companies to sustain hefty valuations as they look to grow by 15-20 percent.

Also Read: Microsoft earnings are a good omen for Indian IT giants like TCS, Infosys, and HCL Tech

Speaking to CNBC-TV18 about the Indian equity market, he said, “The way our macros are getting managed, the way policy initiatives are being undertaken, it’s quite likely that India will continue its round of outperformance versus the rest of the world.”

Also Read: Indian IT companies face structural headwinds to margins, says JPMorgan

While on the FMCG space, Shah said, “I still continue to believe that maybe commodity prices can still fall a lot more than what they have fallen already and that could be a hugely positive surprise for India and Indian companies.”

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Correction in midcap IT provides a good entry point: Nilesh Shah

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nilesh Shah of Envision Capital views the recent correction in the midcap IT space as a good opportunity to enter, especially to investors who didn’t have a good measure of investment in IT. In an interview to CNBC-TV18, he said: “Some of the Tier-II companies, which essentially are doing extreme cutting edge work, will see higher growth rates over the course of the next 2-3 years.”

His remarks come at a time when the IT sector has taken a backseat in 2022 so far, after outperforming the market for much of 2021.

One sector that has largely remained insulated from the fallout from the COVID-19 pandemic is the IT space. It has only grown exponentially, as companies spearheaded the much-needed scale-up while riding the digital wave.

The current quarterly earnings season has been a mixed bag for the sector, with IT behemoths like TCS, Infosys and HCL Tech largely exceeding Street expectations on the revenue front. However, margins felt squeezed for most of the companies owing to wage inflation and attrition.

However, this hasn’t deterred Shah the slightest from the IT space. He is of the view that the sector looks promising for the next 2-3 years. “Maybe 2-3 quarters will still continue to be challenging for the IT pack,” he added.

Catch latest stock market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

EMs will outperform US equities; good time to buy auto stocks: Envision Capital

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nilesh Shah, MD & CEO, Envision Capital, believes emerging markets will outperform US equities, going ahead. Shah is of the opinion that state elections have a limited impact on the market. According to him, the correction currently being seen in the market is not out of the ordinary.

He said, “It’s always hard to say which way this particular development will play out going forward and that could lead to some more corrections, but so far it has not been anything unusual from the kind of correction that we have seen over the course of the last couple of years.”

On sectors, Shah believes it is a good time to buy auto stocks. As far as IT is concerned, he explained that if the companies fall 10 percent, it could present a good entry opportunity.

“In the very short to medium-term, the stock prices of IT sector depends a lot in terms of how the Nasdaq moves and that’s, of course, more a directional. So if there would be another 5-10 percent correction in some of the IT names, I think they would come back on the buy list,” he said.

Also Read: Crude crisis to hit Indian economy lesser; commodity prices may soften a bit: Bank Julius Baer

On ONGC, he shared that he will avoid the stock despite the spike in crude price. He opined that ONGC is more of a trading bet rather than an investment idea.

Catch all the live updates on Russia-Ukraine war here

“Apart from the short-term trading moves that you can get, but beyond that, these are not investment bets because you do not know how much ONGC will get to retain from this abnormal rise in crude oil prices. So enjoy the ride if you are a trader on long, otherwise, beyond that, I do not think this merits investments,” said Shah.

For the entire interview, watch the accompanying video

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Envision’s Nilesh Shah thinks this is the sector to watch for next 2 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharmaceuticals is the space to watch for the next couple of years, Envision Capital’s Nilesh Shah said in an interview to CNBC-TV18. Big Pharma has a long pipeline of launches for highly competitive markets such as the US, said Shah, MD and CEO of Envision Capital.

“There are some blockbuster opportunities which are likely to unfold over the next few quarters, and that will take care of some of the recent concerns in terms of pricing pressure going away or the base portfolio of generics facing price erosion… I think they will have some significant launches going ahead,” he said.

Also Read: Why India is the pharmacy of the world?

Speaking on the power space, he suggested avoiding conventional generators, and said it is better to play the theme through ancillaries.

“ABB Power Products is a major leading player in transformers. So much action is happening in the renewable space. Triveni Turbines essentially is going to play a very significant part with all the private sector capex happening in the power space… Look at names that are leaders, are focused, niche and capital-efficient, and where there is still a lot of headroom to generate alpha over the next few years,” he said.

Also Read: Expect weak auto sales in September, Ashok Leyland, M&M, Maruti Suzuki top picks: Analysts

Shah prefers auto ancillaries to auto stocks, as the demand for components is going to remain be it electric vehicles or conventional plays. “The auto component space is a much effective way to play the entire demand for automobiles because they are pretty much vehicle agnostic, OEM agnostic and technology agnostic,” he said.

“They obviously have the replacement market and the exports market. So whichever way you look at it, in terms of the big opportunity, the linear opportunity, or a diverse set of opportunities, auto components are a better way to play, from a bottom-up perspective as well as a good proxy for automobiles,” he added.

For more details, watch the video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Midcap IT stocks warrant caution; positive on specialty chemicals space: Envision Capital

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nilesh Shah, MD & CEO of Envision Capital, on Wednesday, said that the midcap IT stocks warrant caution.

“Midcap IT segment does warrant caution at these kinds of levels. There has been a massive rerating and most of these midcap stocks in the technology service space, are now trading at a huge premium to some of the bellwether, the larger IT stocks. So, one has to be very careful of adding fresh positions or fresh names,” Shah said, in an interview to CNBC-TV18.

Also Read: Amid fintech offerings in lending space, are merchants’ savings taking a hit?

According to him, the demand environment for tech companies is very strong. “However, the parameter to watch out for is margins. If you look at it, over the last four quarters or so, margins have been at record highs and it’s unlikely that margins are going to sustain at these kinds of levels. And so, if a bit of slippage on margins happen, you could actually see a sharp correction in the stock prices of that, some kind of alignment of PE multiples where some of these stocks fall in line with the valuations of some of the largecap peers. So, this is a time to turn a little cautious on the technology services sector,” he said.

Also Read: Morgan Stanley selective on midcap IT; overweight on Mphasis, Mindtree; here’s why

He further said that sectors like specialty chemicals continue to be strong. However, he does not see alpha generation in universal banks. “I don’t see massive scope for alpha generation in the universal banks because they are most vulnerable and with the kind of margins and spreads that they have enjoyed is in a way, now getting threatened with fintech, specialized lenders coming in etc., with abundant liquidity,” Shah said.

For more, watch the video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Outlook on economy remains robust; prefer IT over FMCG: Envision Capital

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Nilesh Shah, MD & CEO of Envision Capital, on Tuesday, said that outlook on the economy remains robust.

In an interview to CNBC-TV18, he said, “The outlook on the economy, the demand environment still continues to be robust. Of course, there is some kind of speed breakers coming in because of supply-related challenges and especially for those companies, which are part of a global supply chain, obviously are getting challenged, but overall, I still believe that the demand environment is very strong and as we come out or get used to COVID-19 and all of that, I still think that consumer sentiment will come back even stronger than what we have seen over the last three to four quarters.”

On investments, Shah said, “In the context of how the market dynamics are playing out currently, clearly, technology services as a sector could be the safe hiding spot and the concerns, which are there, globally, they are all around liquidity, inflation, rate hikes and all of that. In that context, IT services still continue to have a very stable demand environment, margins are intact, or probably they could soften a bit, but by and large, intact, strong cash flows, and valuation, which of course have kind of moved up and rerated but they are not as expensive as I would look at the other pocket of safety, which is the consumer names, the valuations do tend to be north of 50 times in that context, probably, technology services will continue to hover around this kind of valuations, and end up being a strong outperformer.”

Also Read: Indian economy rapidly normalising towards pre-pandemic levels: Kumar Mangalam Birla

“Auto components, auto ancillaries, is a much better place to be in. There are some really capital-efficient companies there, which have a very strong anchoring with some of their original equipment manufacturer (OEMs). In addition to that, they have the replacement market, the exports market, and obviously, will be still relevant for the new set of new-generation electric vehicle (EV) players. So relative to OEMs, we still believe that auto accessories, auto components are essentially a significantly better way to participate,” he said.

Also Read: Zero emission but electric vehicles aren’t so green as projected; here’s why

Shah further said that for investors that are looking for inflation plus returns, commodities is not a place to be in.

For the entire interview, watch the video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow