Bundles of Indian twenty rupee banknotes (Photographer: Dhiraj Singh/Bloomberg) 

Investors Carnival: Jatin Khemani Says It’s The Right Time To Invest

The latest selloff eroded all the year’s gains for Indian benchmark equity indices. The correction, according to Jatin Khemani, founder and chief executive officer at Stalwart Advisors, is a good entry point for investors with a three- to five-year horizon.

His investment advisory firm sat on “decent” levels of cash in 2017 and through most parts of this year. “We fully deployed our cash post the recent market correction,” Khemani told BloombergQuint on the sidelines of the Investors Carnival in Goa.

A sector and market-cap agnostic investor, Khemani bets on companies whose earnings grow at an annualised rate of 20 percent. His portfolio has no exposure to financials, information technology or even pharmaceuticals sector. He’s bullish on capital goods which may provide interesting options over the next three-five years.

Advice To Investors

A sound management and a non-leveraged balance sheet are two important qualities that Khemani looks at before making an investment.

Just because a stock has fallen 60-70 percent from its peak does not mean it has now become an attractive bet. One should look at the intrinsic value that it will generate before making an investment.
Jatin Khemani, Founder & CEO, Stalwart Advisors

Khemani said that while the current sentiment in the market is sombre, the situation on the ground is upbeat. “Most of the managements we interact with are optimistic about the future outlook,” he said. “It’s likely that earnings growth will surprise us over the next three years.”

Watch the interview