What does Saurabh Mukherjea pick in the current fall?

He mentioned real estate, construction and capital goods ancillaries are the key sectors to watch out for in the coming months.

Saurabh Mukherjea is the Founder and Chief Investment Officer of Marcellus Investment Managers. In a recent interview, he has discussed what companies and themes he buys in the current fall. 

Saurabh Mukhrejea eyeing quality financials in the current fall!  

As he has stated, quality financials are important. There is a revival in the economy. He's out on the road with a group of individuals interacting with businesspeople in small communities across northern India. The economic recovery is gaining traction, and high-quality financial services companies offer a simple way to profit from it.

The real estate construction boom has gathered up steam, as we covered last year, and he is looking into the construction materials space.

The capital goods cycle is the third area where they have been looking for acquisitions; capital goods ancillaries, where valuations are relatively reasonable and well-run companies are available at discount rates. The post covid unlock leads to ports, hotels, and schools filling up as the economic recovery gains traction. Over the next two to three quarters, they will see a significant increase in profits growth, and we want to take advantage of that.

What is his view on IT stocks across large, mid and smallcap?  

TCS is the largest provider of IT services. Because the order books of all Indian IT services companies are rising, they continue to strengthen their position. So, since order books aren't an issue, they're concentrating on supply-side companies that have a consistent stream of talent. 

In India's IT industry, talent scarcity is a major issue. TCS, a large-cap company, and L&T Technology Services, a mid-cap company in their Rising Giants portfolio, are their key IT investments. They also have Info Edge in their Rising Giants portfolio, and given Info Edge's exceptional track record of establishing great franchises over the last 5, 10, 15, and 20 years, they are adding to their Info Edge positions.