From 2020 to 2024, GoI has stepped up infra spending fromRs.4.5 lakh crs to Rs.11 lakh crs. This is further set to double in the next 5years. The size of the opportunity, clarity of policies and superior execution track record make the infra theme one of the most exciting spaces in the market today.
True to label infra portfolio (no hedging with other sectors upto 20% of portfolio like some peers), very strong focus on bottom up stock picking especially in the under-researched small cap space has enabled Bandhan Infrastructure Fund to deliver top quartile performance over the last 1 yr.
Despite a huge run up in stock prices, Vishal remains comfortable about being able to manage a portfolio of stocks which still have strong value, with no pressure at all to buy expensive stocks for lack of choice.
He particularly likes construction companies – big and small. Long growth runways, reasonable valuations and capital allocation lessons well learnt from the previous cycle – all make up for attractive investment opportunities in his opinion.
He is tactical with his power sector exposure – recently moved from utilities which turned expensive to capital goods suppliers to utilities to retain sector exposure indirectly while remaining valuation conscious.