Chakri Lokapriya, Managing Partner at RSB LLP, believes that ICICI is leading among private banks. HDFC, on the other hand, still has room to grow despite merger integration and cost of capital issues. The recent acquisition of a major home loan provider by HDFC will take time to show results, so it’s best to wait until these issues are resolved.
In the cement sector, consolidation is happening rapidly, especially with UltraTech and India Cements making headlines. UltraTech, as the market leader with 200 million tonnes, is facing competition from Adani, who has made significant acquisitions in the industry. With Adani’s recent acquisition of Sanghi Industries, UltraTech is looking to add 15 million tonnes from India Cements to maintain its position. This move will give UltraTech a market share of about 20%, crucial in a consolidating industry.
When asked about his preference between UltraTech and Adani, Lokapriya believes that UltraTech is well-positioned as the market leader. However, Adani’s acquisitive nature with ACC and Ambuja might lead to faster growth in the future.
Regarding HDFC Bank, Lokapriya suggests that there is still time to invest in it despite ongoing merger and capital issues. The bank’s acquisition of a major home loan provider will take time to show results, so investors should wait for these issues to be resolved.
In the telecom sector, Jio’s tariff hikes are expected to be followed by other players, benefiting Vodafone Idea the most. Jio’s strong subscriber base and balance sheet strength indicate a step towards its IPO.
Lokapriya also discusses the potential of CSB stock after new management took over, expressing optimism about the company’s growth plans under the new leadership. He also highlights the positive outlook for Stanley Lifestyle, a luxury furniture maker with strong margins and scarcity premium in the market.
Overall, Lokapriya’s insights provide valuable information on key players in various sectors and their growth prospects.