He believes the opportunity extends beyond generation to the broader ecosystem, particularly transmission. “There’s a lot of renewable energy being put up in the country… how do you get the power, how do you evacuate the power to where it’s actually needed, so I think transmission is going to be a very important element,” he said, highlighting opportunities across ancillary players that could scale up over time.
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Despite the sharp rally in power stocks, Trivedi remains confident about the runway ahead. “If you have a five-year perspective, you’ll make money. If you have a six-month perspective, you might see a correction.”
In contrast, he remains cautious on IT services despite more reasonable valuations. “The impact of AI has not been fully understood on what it’s going to do to the IT companies,” he said, adding that there is still no clear visibility on the next phase of growth. He pointed out that apart from isolated moves, the sector has not demonstrated a decisive shift in strategy, keeping him on the sidelines for now.
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Feedback from global investors also reflects caution. While there is interest in India, fresh capital flows remain contingent on macro stability. “The question is how much of the bad news is already priced in,” he said, adding that committing significantly more capital is unlikely until the rupee stabilises. Elevated oil prices remain a key concern, with the Indian basket still at high levels, creating a meaningful macro headwind.
That said, Trivedi continues to find opportunities on a bottom-up basis. Alongside power, he is constructive on sectors such as data centres, hospitality, precision engineering and exporters. “We like hospitality, we like precision engineering, exporters given trade deals now with the EU and the US,” he said. At the same time, he flagged a gap in India’s export penetration, noting, “I found almost nothing made in India, I was very disappointed,” during a recent visit to US retail stores, underscoring the untapped opportunity.
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Within portfolios, financials remain a core allocation, but incremental capital is shifting. “Our biggest allocation is to financials, but incremental money definitely goes to power,” he said, pointing to stronger growth visibility in the latter. He also sees opportunity emerging again in EMS and cooling-linked plays after a sharp correction. “Now is a good time to get back into these stocks,” he said, citing rising temperatures and increasing demand for cooling as structural tailwinds that could support companies in this space over the long term.
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