Bandhan MFis launching its Innovation Fund which will invest in leading as well as risinginnovators across sectors.
Innovation can be disruptive – as we are seeing in the entertainment space (OTT vs TV) or can be productivity focused (manufacturing).
Manish advises caution in the entertainment space as he sees value shifting from the pipe owners (TV channels / multiplex owners) to content creators (studios).
E-commerce will continue growing as more use cases come into play. Expect many more listings of established platforms, which will provide ample investment opportunities.
EV disruption in the auto space is not only creating EV champions in India that are investment worthy but is also creating many more opportunities in the auto ancillaries space as global EV leaders increasingly outsource non-core activities to globally competent auto ancillary companies.
Expect companies in this portfolio to have price/book of 4 to 4.5. Innovation focused companies create significant intangible assets in the form of intellectual property – which doesn’t feature in book value.
Expect to see software product companies, healthcare innovators, MNC capital goods companies, disruptive retailers and such innovation champions in this portfolio.
Don’t expect to see utilities, banks, NBFCs and commodity companies in this portfolio.