Market Has ‘Gravitated’ Towards Firms With Good Governance: Nepean Capital’s Trivedi
“The market is fed up of poor governance and high debt where you’ve seen companies blowing up, banks blowing up,” Trivedi said.
After a few years that witnessed scams, fleeing promoters and insolvencies, India’s equity investors have gravitated towards companies which are well run, according to Nepean Capital’s Managing Partner Gautam Trivedi.
“The market is fed up of poor governance and high debt where you’ve seen companies blowing up, banks blowing up, promoters fleeing the country. In the midst of this, the market has gravitated and polarised towards good corporate governance and companies with good ownership,” he told BloombergQuint in an interview.
Trivedi also cited the example of Spandana Sphoorty Financial Ltd.—the stock has risen more than 45 percent since listing on Aug. 19—which grew popular with investors after Kedaara Capital Investment Managers bought around 49 percent stake in the company. Other such companies, all backed by credible private equity funds, include Aavas Financiers Ltd., Essel Propack Ltd. and Zee Entertainment Enterprises Ltd.
Here are other key highlights from the conversation:
- “Think we have an economic situation that needs to be corrected”.
- Believes personal tax increase on the super rich was unnecessary.
- commercial vehicle space has been hurt badly, indicates production cuts.
- Lack of availability of financing in automobile sector needs to be addressed.
- Two-wheelers and commercial vehicles need better financing options.
- Think there is a lot of demand for bluechip names in India.
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