Suresh Soni on the Industry Outlook | OLM Interaction - video Dailymotion

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Suresh Soni, CEO, DHFL Pramerica Asset Managers, shares his outlook for the economy and DHFL Pramerica's future plans.   Subscribe to Outlook Money for more: https://goo.gl/jHD2AA  #SureshSoni #IndustryOutlook #Money #OutlookMoney #OutlookMagazine #OutlookGroup #OLMInteraction

Transcript

00:00 (upbeat music)

00:02 - From an economy perspective,

00:12 I think we are reasonably well poised.

00:14 In fact, India is one of the largest economies in the world

00:17 which is growing at the fastest pace.

00:19 Happening at a time when the economies

00:21 are struggling to grow.

00:22 Our corporate sector is in a reasonable health,

00:26 I would say.

00:27 And the reason I'm using the word reasonable

00:29 is because we have had almost about three years

00:32 of relatively low profitability growth in corporate India,

00:35 but that is beginning to change now.

00:38 In the current year, we expect the corporate profits

00:40 to grow by about 10 to 12%.

00:42 In fact, starting with the next quarter,

00:44 the profitability growth is expected to be fairly good.

00:47 So overall, I think corporate profitability

00:50 is likely to improve from here on.

00:52 Now, market per se, in terms of valuations,

00:55 are not exactly at the cheapest level.

00:58 In fact, they are probably trading at a little higher

01:00 than their long-term averages.

01:02 More so in case of mid-cap space.

01:08 So overall, while the economic prospects

01:10 as well as the market prospects remain bright,

01:12 the valuations are slightly higher than long-term,

01:15 which of course happens at a time

01:17 when the market is turning a little bit

01:19 from a multiple year of low profitability.

01:22 Having said that, the expectation

01:24 from a near-term perspective should be somewhat moderate.

01:27 Over a long-term, our markets have compounded

01:29 investors well at 15% CAGR.

01:31 So overall, market outlook

01:34 from a long-term perspective remains bright.

01:36 Near-term, improving profitability,

01:39 at the same time, maybe a slight amount of valuation

01:42 above the normal range.

01:44 Within the market segments, I would favor the large cap

01:47 at the expense of mid-caps,

01:48 because they appear to be relatively better value

01:51 at this point of time, compared to the mid-cap space,

01:54 which has seen a serious run-up.

01:56 Over the last, let's say, decade,

01:58 we have seen mid-caps trading at about 10% discount

02:00 to large cap indices.

02:02 Currently, they are trading at about 50% premium

02:04 over large cap indices, and therefore,

02:07 from a segmentation, I would say,

02:09 large cap space offers better value.

02:11 For our company, I would say the acquisition

02:15 of Deutsche Bank's asset management business

02:18 that we did last year was a transformational event for us.

02:22 Post that, we are looking to aggressively build this business

02:26 and would continue on the path of engaging

02:28 more retail investors as well as distributors

02:31 as we go along.

02:32 So, overall, we are poised to grow,

02:34 and we believe that markets

02:36 are looking reasonably healthy, too.

02:38 (upbeat music)

02:41 (upbeat music)

Suresh Soni on the Industry Outlook | OLM Interaction

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