Avoid trouble spots, stay cautious amidst volatility: Daljeet Kohli

“Overall, it will be more and more stock specific and how each company delivers on the numbers,” says Daljeet Kohli, Roha Asset Managers.

Help us with your take on the markets. It has been a decent recovery for the Indian markets, though the global handover was not that great and a bit of a sector churning underway. Help us understand that what are you looking at specifically amidst this market setup?
Daljeet Kohli: See, we are believing that probably from here onwards, markets will be more of stock specific in nature. It will be very difficult to take a call on any one particular sector because we have seen the fall also across the board. So, brutal fall in last two months, we have seen, especially in the broader markets, almost 30% from the top many of the stocks have gone down. In fact, some of them have even more than that. So, which means that now the recovery will happen. So, if we analyse what had happened in last two months, market has been very brutal, wherever there was no growth or the valuation was very high and if the combination was there, no growth and high valuation, then the stocks just went for a toss.

So, now what we will be looking for will be the same things. Now, where the quarter four recovery will come in, if the corporate earnings are coming back in quarter four, whichever stocks, whichever sectors, we will see that happening and where the valuations are reasonable, then the markets will probably reward those companies.

Otherwise, any bad news, we have seen what happened to IndusInd bank. So, any bad news, probably we will see the same fate. So, how we are building our portfolio or what we are doing in our portfolio is we just reworked on all these companies, almost 25-28 companies that we own we have gone back to each and every line item of these models and see that whether these companies are likely to show that momentum in quarter four or not and what happens to FY26 and FY27 numbers.

Fortunately for us, barring one or two, we did not have to change any numbers. So, whatever our expectation before the quarter three numbers, that has continued, so which means that we just have to stay put. We do not have to do anything major churning around wherever possible and whatever new money is coming we are just adding the same stocks, so that is on our particular portfolio strategy. But overall, it will be more and more stock specific and how each company delivers on the numbers.

What should a shareholder be doing?
Daljeet Kohli: Due to compliance reasons I cannot give any recommendation on the stock. What I would just say in a simple way better to stay away from things where there is trouble and especially in this kind of market when sentiment is so bad, every day a new news flow is coming in and market is very brutal with the reaction, so instead of doing bottom fishing one should stay away from such kind of things.