“The execution, as we’ve seen by Blinkit, is far superior to peers,” Mehra said, adding that profitability and cash flow matter more than revenue growth alone when it comes to valuing these businesses. He said other players in the space, including Swiggy and Zepto, get a much smaller share of the firm’s allocation.
Mehra said the broader market has become more stock-specific, with performance varying widely even within a single theme. He pointed to electric vehicles (EVs) and quick commerce as examples, where one company in each space is pulling ahead while others struggle to keep pace.
He also noted that a large pipeline of initial public offerings (IPOs), qualified institutional placements (QIPs) and block deals is pulling investor attention toward primary markets alongside the secondary market.
Mehra said the firm has largely captured the shift from internal combustion engines (ICE) to EVs through holdings in Ather Energy and Samvardhana Motherson, though he described the latter as more of a manufacturing and diversification play, given its expansion into defence and aerospace, than a pure EV bet.
Mehra named telecom as a long-term structural theme for the firm, citing what he called significant underpricing of tariffs relative to the value delivered to consumers.
He expects the upcoming Jio IPO to trigger a re-rating for the sector, including listed rival Bharti Airtel, as tariff increases over the next 12-24 months translate into stronger earnings.
He also called NSE, which is preparing for an IPO alongside Jio ahead of Diwali, a very promising asset that has been a multi-bagger for the firm’s portfolios that hold unlisted securities.
Other themes Mehra highlighted include consumer discretionary, which he described as a stock-specific, bottom-up opportunity, and select new-age financial companies.
He said private banks remain a promising but currently underperforming space, pointing to names such as HDFC Bank as having lagged recently despite attractive valuations.
For the full interview, watch the accompanying video
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