Vikas Khemani’s Investment Strategy for Sustainable Portfolio Growth
Faster, Stronger, Cheaper Valuation Criteria
According to our sources, Vikas Khemani, Founder of Carnelian Asset Advisors, advocates for an investment strategy centered on faster, stronger, and cheaper valuation criteria. This method of investing, he argues, is especially potent when focused on midcaps and smallcaps. Khemani asserts that these companies are likely to outdo largecaps over the next half-decade to the full decade.
Projected Upsurge in the Pharma Sector
Khemani sees the pharmaceutical industry as a sector ripe with growth potential. Particularly, he spots considerable opportunities in the Active Pharmaceutical Ingredients (API) space, ER&D companies, manufacturing, and capital market-oriented AMCs. These areas, he believes, hold the promise of delivering substantial returns to investors.
Khemani’s Investment Philosophy
What underlines Khemani’s investment approach is his emphasis on cultivating a portfolio that outpaces the index in growth, boasts a robust return on equity (ROE), and possesses a sound debt to equity ratio. Furthermore, he values the criterion of cheaper valuation.
Optimism for the Indian Economy
Khemani predicts significant expansion for the Indian economy, anticipating its metamorphosis into a $10 trillion economy. Such growth, he states, would not only benefit the private banking sector but also public banks.
Rising Pharma Sector
Importance of Reasonable Pricing
Khemani emphasizes the significance of purchasing at a sensible price, signifying it as a crucial factor for wealth creation. Regardless of the sector, he maintains that reasonable pricing boosts the investors’ potential for generating wealth.
In Conclusion
By leaning into Khemani’s investment philosophy of faster growth, stronger return on equity, and cheaper valuation, investors can maximize their portfolios’ potential for sustainable growth. Furthermore, sectors such as pharma, IT, manufacturing, and financials are poised for future prosperity, presenting great opportunities for long-term investments.
