Carnelian Capital Is Betting On Tech, Real Estate Sectors For Multi-Year Returns
Smaller names in India’s real estate sector could turn into large players over next 5-10 years, Carnelian’s Vikas Khemani says.
Carnelian Capital Advisors was one of the first to spot the potential of specialty chemical stocks. Over the last year, share prices of sectoral leaders rose between 40-90 percent while the Nifty 50 has dropped close to 20 percent.
The investment advisory fund’s founder now has another sector that is likely to give returns over multiple years to investors: Real Estate.
While it’s early days, some smaller names in India’s real estate sector could turn into large players over the next 5-10 years, Vikas Khemani told BloombergQuint in an interview. After facing multiple years of liquidity and regulatory headwinds, the BSE Real Estate Sector Index has given a negative return of 31 percent over the last 12 months, according to Bloomberg data.
The sector, however, is bound to perform well going forward, Khemani said. “One should keep an eye on which companies could be 10x-20x within that space because there is no doubt there’s a structural change happening in the businesses. You will find a $5-10 billion market cap company in 10 years from now.”
Another space where Indian companies could see exponential growth is the tech sector. Growth in India’s technology sector has been service-based but the growth coming ahead could be based on product development, he said.
Speaking about specialty chemicals, Khemani said the sector still has many years of returns. “Opportunity from here could also be really big from 5-7 years... I feel that this is far from over yet.”