PL Asset Management prefers to avoid banks and the broader lending space but is heavily invested in the capital markets theme, including brokers, asset managers, wealth managers, depository participants, and certain tech companies within the sector.
The firm has held IT stocks for the past four to five months and continues to do so, though not with the largest allocation. While IT benefits from rupee depreciation, providing a natural advantage, Vora stated that the sector’s valuations are currently stretched.
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Despite its defensive nature, strong cash flow, and currency tailwinds, they view IT growth prospects as average compared to other preferred sectors.
In healthcare, they focus on export-driven pharmaceutical companies and domestic hospital players. They also have some exposure to real estate.
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