“I would think that the best of the cycle is over for with its exposure to crude as well as metals, aluminium, and copper. The next couple of years are going to be tough,” says Sandip Sabharwal, asksandipsabharwal.com.
PVR is buzzing down by 5% in trade. Three investors have offloaded about 7% equity. We saw that big deal in PVR yesterday. What is your outlook when it comes to that entire space?
I still like the exhibition space because I still believe that people want to go out and watch movies rather than sit in their homes. So, the entire thesis is that because everything is getting digitised, no one will move out of their homes, they will just remain there and will just be playing video games and not go to theme parks or entertainment centres or just order in food and not go to restaurants. That does not happen.
But multiplexes are also dependent on good content.We saw a few movies flop. So the stock sold off but directionally, such selloffs give opportunities. I still believe that the next few years should be good for them. The private equity selling of some stocks has been happening on a regular basis.
We have seen that in some insurance companies, we saw that in . A few older private equity investors have exited. That creates a short term pressure on the stocks, but directionally I would still be positive.
The semiconductor plant would be part of the listed entity. But it is a long gestation project. The Vedanta Group is struggling with a lot of debt, both at the holding level and even at the listed level. When one is committing to such a large investment in this kind of market, should one be nervous?
The market should be nervous on commodities because the peak of the commodity cycle has clearly played out. Given what is happening in China and a potential slowdown in the US and Europe, I think we will see further commodities selloff. I do not see a story there.
These groups want to move into semiconductors, EVs because these get higher valuations in the market. I do not think that is a story investors should be playing. We should not be following price action out here. I would think that the best of the cycle is over for Vedanta with its exposure to crude as well as metals, aluminium, and copper. The next couple of years are going to be tough.
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