Avoid Ola Electric: Established EV players better
Joshi said the firm has avoided exposure to Ola Electric since listing, preferring established electric vehicle (EV) and auto companies that already have strong sales, service, and distribution networks in place.According to him, newer EV ecosystem players may need to invest heavily in dealership and other infrastructure.
L&T remains a top portfolio holding
Joshi said, “Larsen & Toubro (L&T) still remains one of our top holdings as far as leadership stocks are concerned, in the global portfolio,” due to its role in India’s capital expenditure cycle.
He said ongoing divestments of non-core businesses are aligned with capital allocation priorities. He expects steady improvement in order book visibility, working capital management and return ratios over time.
HDFC AMC well placed as capital market participation rises
Within asset management, he highlighted HDFC Asset Management Company as well placed within the capital market theme, supported by expected growth in wealth management demand and rising participation from retail investors.
On regulatory developments, Joshi said actions by the Reserve Bank of India (RBI) and market regulators show a focus on controlling speculative trading.He said regulatory measures, including tax changes and exposure norms, indicate speculative activity is under monitoring. At the same time, he remains positive on long-term capital market participation trends.
ITC: Watching capital allocation into new businesses
At ITC Limited, Joshi said the cigarette business is likely to remain stable even after price hikes. However, he flagged concerns around capital investments into new product categories and expansion into new markets.
He said past FMCG expansion phases required large investments and took time to scale, which impacted return ratios. He said return on equity and return on capital may remain stable or muted if large investments continue.
Within FMCG, he said Nestlé India has delivered consistent performance compared with peers.
IT sector: AI shift could change business models
Joshi said artificial intelligence (AI) competition is becoming a key structural factor for IT companies. He said firms will need long-term roadmaps to adapt to the AI ecosystem rather than relying only on acquisitions.
He said, “The entire model itself will change.”
He added that IT companies may need higher capital expenditure for employee upskilling and technology infrastructure, which could impact margins, dividends and buybacks. He said markets will track how IT companies respond to large technology investments by global platform firms.
For the full interview, watch the accompanying video
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