Indias Stock Market Through A Bottom Up Investing Lens Govindraj Ethiraj The Core Report

TITLE: India’s Stock Market Through A Bottom Up Investing Lens | Govindraj Ethiraj | The Core Report CHANNEL: The Core DATE: 2026-06-26 ---TRANSCRIPT--- With the rising per capita income, there is also a increased level of financialization of savings, which is coming more into equity markets now as we see higher level of per capita income driving higher growth rate in terms of discretionary spend. And even higher growth rate in terms of premiumization of spend.

There’s of course retail and then there are the FMCG companies. Now, all of them are growing, but none of them have been really dynamic in the markets. Yeah. Urbanization itself is increasing meaningfully. So, I think the overall set of data around, you know, formalization, retailization will continue to increase is my view. As you get more disposable income, you probably move more towards experiential, more towards premiumization. And that is where you will find new set of winners. And therefore, the existing staple companies will also have to reinvent themselves. What are the newer areas that are emerging which could be potential investment opportunities down the line? Hello and welcome to this course special edition. I’m joined by Rakesh Vyas, Chief Investment Officer and Portfolio Manager at Quest Investment Managers based out of Mumbai. They run a series of portfolio management schemes as well as alternate investment funds. Rakesh, thank you so much for joining me. So, what we’ll do today is I thought we’ll look at things bottom up. We talked to a lot of fund managers and it’s institutional and most of them are looking bottom down as as they should. And there are a few macro signals that everyone is now familiar and watching closely. So, one of course is oil prices, then there are geopolitical issues in tangent, there’s India’s own internal challenges perhaps to do with consumption and so on. But that we all know. So, let’s look at how things are looking from bottom up and how you as a fund manager are looking at the market. And suppose we were to both go on a journey together, where would we start? Sure. So, thank you so much Govind for this and glad to be on this podcast. So, as you rightly highlighted, I think on the geopolitics and the macro side, you obviously have some headwinds and tailwinds largely. But, if I was just to look at, you know, bottom up and how I see thing that, you know, investment over next 5-7 years could look like from equity perspective. There are various sectors where we still see lot of tailwind and some of this is driven by how the overall economy is driving. Some of it is also driven by the policy actions that both RBI and government has taken in last couple of years. So, if I just to think about it, you know, the financialization of saving is still a very long-term macro theme that continues to play out. In that context, if you see now, I think compared to history and this is this what data does suggest that, you know, a lot of the new set of consumers are actually very, very amenable to take that compared to what we have seen historically and therefore the credit growth as a segment is rising very, very fast. And there have been attempts by both the RBI and government also to drive that growth because that was something that was lacking for some time. So, I think overall, the credit growth as a basket will continue to drive. And second is with the rising per capita income, there is also an increased level of financialization of savings, which is coming more into equity markets now as we see now. SIP numbers do continue to suggest very, very strong inflows. So, that is one thing that we’ll probably continue to see going forward as well because people are also becoming more aware of, you know, keeping some part of saving for the next leg of their journey in terms of their life cycle and also the lifespan are increasing because of improved health care, etc. right? So, so that is a trend that will probably continue to play out in that aspect. You know, there are set of sectors or companies which can continue to benefit out there. The third very important aspect and we are just about entering that phase of journey is around, you know, higher level of per capita income driving higher growth rates in terms of discretionary spend and even higher growth rate in terms of premiumization of spend. Right? And if you look at, you know, large global economies in general data do suggest that if you cross $2,000 to $2,500 per capita and beyond that is when the acceleration in this spend continues to come through. And that is something that probably we’ll continue to see going forward. If you look at the kind of spend that people are doing now in large ticket size, which is around homes, houses, luxury houses, larger spaces also experientials, which is more around travel, tourism and then also about, you know, more convenience. So, not just the cars and the bikes, bikes, etc., but also you just look at, you know, new set of business which has come through this convenience route, which is quick commerce. You know, globally, quick commerce as a business actually doesn’t exist. Yeah, only in India. Only in India, right? And it’s not that it hasn’t been tried historically. Amazon tried it long time back in Europe. But but there were very different dynamics then. I think some of these conveniences, etc., is is a trend which will continue going forward as well. So, if I just look at few of these sectors where I think there is still very, very large tailwind around macro still exist. I think if you then at least put together, right? Then there is going to be incremental demand on manufacturing because not just services. I think manufacturing as a theme India in terms of, you know, GDP ratio is maybe 15, 16% manufacturing. India is such a large market and one trend that we are now increasingly seeing and this is specifically true in last maybe 5, 7 years. Now, see, you look at the geopolitics, right? The kind of wars or tensions that we have seen in last 5 years, decade is significantly higher and of much larger number or quantum than what you’ve seen in last decade, right? And last almost 15, 20 years Uh, has been looking at globalization, sourcing, manufacturing more from China. I think incrementally most countries are now becoming much more cautious. They want to look at more localization. So, therefore, you are moving away from globalization to deglobalization. Lot of manufacturing has to come back to uh local uh countries as well as, you know, energy security. So, these are some of the larger trends where we believe that if you if you want to identify sectors, companies out there, we’ll probably see a very, very long-term theme of maybe another 5 to 10 years. As you rightly talked about, you know, if you want to start journey from here on, which are the sectors where we still remain fairly positive are mostly around these sectors. Right. So, let me start with financialization. And when we say financialization, um are you referring banks specifically and lending uh or other areas? For example, insurance for whatever reason hasn’t really caught on, and that’s also equally part of the financialization story. Yeah. So, you’re right. I mean, uh uh so, I think the first bucket actually comes from lending part itself because that’s the larger piece, right? Um and in then, uh you know, if you look at as I was saying, you know, the propensity of people to take that now for various reasons is increasing, and which is what will continue to drive the credit growth going forward. So, uh and if even in terms of the market itself, you look at now, right? The valuations that uh banks are trading today are reasonably more attractive. If you look at the balance sheets uh of banks are fairly well balanced in terms of their capitalization, in terms of asset quality, in terms of growth. And in that context, the ROEs that they generate versus the multiples that you are paying for that ROE and growth looks very, very reasonable. So, that continues to remain reasonably longer-term story. As for around the insurance part, I think this is where uh insurance still more of a push product than a pull product. Uh and that is where, you know, the economics around insurance has to improve meaningfully. Uh today a large part of the insurance uh you know, income goes part of commissions for you to drive the growth, right? The attempt by both government and IRDA incrementally is to drive that commission down to make insurance more affordable. What is also happening over in a few clearly see, I mean government itself is stepping now into into health insurance, into giving life insurance, etc. Which takes away some part of that need to drive the private insurance largely, right? So, so they are giving lot of security to the start out people who actually need insurance. I think health will continue to drive growth going forward because as I said, you know, life span is increasing, health costs are increasing meaningfully. And the the kind of diagnostic that we have today, it is easier to identify health issues at much earlier stage than historical. And therefore for you to go out and treat as well. And therefore this set of consumption around health health insurance will still see growth. The only challenge that I still see is around the the cost of economics largely, which is commissions, etc. But that is space that over next two, three, four years will find its own way. I think the last piece that I still want to talk about in financial services is this is around, you know, the asset management services or the intermediary now. If you look globally, a large part of pool of money that people save goes into equity markets. Of course, it also goes into debt market, but equity market still commands a larger share. In India, we have just started that journey is what my view is. Of course, last one, two year if you look at equity returns has not been great. And people always Yeah, for two years. Exactly. And people always do counter as to you know, when would SIP see any headwinds. But I think incrementally people have started become more mature to look at this more from 5, 10 years perspective. Of course, we’ll probably not see the kind of bull market that we saw just post COVID for next 4 years, but I think a general expectation of getting between 12 to 15% return is still a acceptable number compared to the other asset classes that we see today. And therefore, in that context, that is something that I think over period of time will continue to drive more traction. So, these are the pockets around which I think we can still look out and identify companies who are getting So, the second part you talked about per capita leading to higher consumption and the premiumization, let’s say, curve. And various people could benefit from this. There’s of course retail, and then there are the FMCG companies. Now, all of them are growing, but none of them have been really dynamic in the markets. So, how do you see this dichotomy? Of course, this extends to other industries as well. Yeah. I think So, one other aspect is also that, you know, there is formalization of economy that is going through right now. If you look at it, I mean, even the SMEs are growing, but but there is lot more formalization of economy, and you if you look at Now, you talked about retail. Retail as a overall basket is continuing to increase meaningfully. One could argue that quick commerce is essentially taking some part of the economy away from, you know, mom-and-pop store to more formalization today. But, I think this is this is a trend that we’ll continue to see going forward as well because this is what probably is the direction of government also. And that that actually leads to much more compliance on taxes, etc., right? And in that context, you today have opportunities which are just starting to take shape. So, for example, if you just look at, you know, Trent AGM, you know, they they are now talking of potentially 5,000 studio stores. They are maybe 20% of that number today, right? And and I think they are just starting that journey, and this is this is a much longer-term story that continue to play out. And this is in the in the in the advent of the numbers that exist today in terms of urbanization etc, right? Urbanization is increasing meaningfully and that will continue to increase is what World Bank and IFC report do suggest. So, I think the overall set of data around, you know, formalization, retailization will continue to increase is my view. As far the FMCG is concerned, I think the aspect that I was trying to highlight is that, you know, these are the basic needs that you start with, right? As you get more disposable income, you probably move more towards experiential, more towards premiumization and that is where you will find new set of winners. And therefore, the existing staple companies will also have to reinvent themselves. So, for example, if you look at HUL, their commentary now, they are also talking of moving more into premium segments, more into, you know, beauty and things like that, which are going much beyond the normal staple businesses. So, those companies in many contexts will have to reinvent themselves in my view. And some of that has been happening for the last couple of years. I mean, premiumization started almost with COVID or just after COVID. Would you say that we are at the early part of the premiumization journey when you look at the retail portfolio or FMCG companies or somewhere halfway in terms of Sure. in terms of projectable potential? Sure. I think maybe we have just started to be honest. I think I think we we won’t haven’t reached the 1/4 of the journey yet and I’ll tell you the reason why. You look at and and I’ll just not talk about premiumization in terms of, you know, the cost of purchase or, you know, the luxury etc. Just the transition. So, for example, Zudio Zudio is actually premiumizing customer away from street fashion to formalization of store economics and things like that, right? And then you have, you know, a lot of new brands etc. that is coming in, which drives the luxury consumption. So, I think at each facet of the economy and the segments there are, we’ll probably see that trajectory moving up. Uh people will move away from as I said, we’ll move more into street fashion too, you know, for the point. Yeah. And therefore, you know, the each strata of economy will continue to look at premiumization in that context. And that’s why I’m saying I I think we are just starting that phase. If we look at, you know, a value fashion today, the largest player is Zudio, which is closer to 1,000 store, right? And they are talking of 5,000. You have other players which are like, you know, Vishal Mega Mart, which is 800 stores. You have You have all of these stores and all of these retail format a potential to actually go between 5 to 10x from what they are today. And therefore, I still think that we have a long way to go. Okay. And and where we started from, I mean, really all of this is not being affected by the big macro moves that we’re seeing right now. Or maybe affected, but only slightly. But this is more sort of underlying. Okay. Uh let me come to energy because that I think is your third major bucket. Yeah. Or have I missed something? No, no, fair point. Yeah. So and when you look at energy, of course, there is a demand shortfall. And particularly this summer of 2026 has been a really tough one. We’ve had heat waves. We’ve hit peak generation capacity of 270 mega gigawatts. Uh we’re searching hard for coal. We want to use gas. Gas is not available. So it’s been a tough which obviously highlights all the opportunities that there are, whether it’s in generation, distribution, transmission, and everything. So which part are you focused on and looking at? Uh so I think across the board, to be honest, right? Uh but in So if I look at just from the opportunity perspective across all three segments. Uh if you look at more from the stock perspective, I can come down to that. But I’ll just I’ll just give you maybe for the benefit of, uh you know, audience, yeah, uh the context as to why we are at this context today, right? Um if you look at the energy basket for us, it’s been primarily driven by thermal historically for all the right reason because we have large coal base and coal reserves in India, much cheaper source of energy available. Uh but also uh during between, let’s say, FY06 to FY 10 12, we had a large quantum of capacity that came in and that brought lot of stress to banking system because not all of them actually fructified into profitable ventures, right? And in that context, lenders and everyone became too cautious to fund any new capacity, right? And that took almost 8 to 9 years for things to come to a normalization level. Unfortunately, in that space, we did not add meaningful capacity. Whereas our, you know, demand increase has been reasonable. Between 5 to 7% on an average basis. Now, the backlog of not putting up new capacities is what is hurting us today. Also, at some level, we also transitioned away from, you know, thermal to renewable, which is the right thing to do. It’s just that you can’t go all out on renewable because they also have certain constraint. For example, solar is only available during days, right? Right? Therefore, we are we are hitting a situation where at least maybe 3 4 years back, government did realize that they need to look at this energy basket more holistically. And therefore, if I look at, you know, 4 years back, people were only talking about renewable as the next source. Uh, I think that has changed. The incremental capex on thermal capacity, coal-based capacity is also coming in. And as you rightly said, I mean, dependence on gas for India is not going to help because we import large part of that number, right? So, going back to core where we can get cheaper source of fuel, which is coal within our geography, probably helps. And therefore, if you look at this context, you will find opportunities in generation space, you will find opportunities in the renewable space. And on top of all of it, once you look at that, you will find opportunity in T&D space. Because if you if all these larger power plants have to come, they come in very large size and therefore evacuation has to be key. And if you look at HVDC as a segment, has been doing very well. So, power T&D as a space will continue to grow up. What is also helping this tailwind, honestly speaking, is around data center and AI, which are large guzzlers of, you know, energy. And And they And India has just given large incentive for data centers to come and put up their capacities is and the assurance that there will be minimal tax or no tax till 2047 is a big testament of government intent to bring that capex into India, which will also drive demand. So, I think across all these segments, we remain fairly positive. Our exposure, if I just talk about, you know, our exposure in our portfolios today, is primarily more focused towards the transmission space, which is where we think that you have reasonable amount of, you know, companies which have very strong moat in terms of technology that they provide. And also in terms of execution that they have been able to do historically and the track record thereof. So, we have exposure to, you know, the OEMs, which are the equipment suppliers in likes of Hitachi Energy, Siemens Energy, etc. And also people who go out and build these transmission line, which is in likes of Kalpataru and then Technoelectric and names like that. I still think that we’ll find reasonable opportunity even in the generating space, but in the context that you don’t want to, you know, have too much of exposure to a particular sector. You just want to play what themes plays best for you in terms of earning growth and valuations. Today that number, or at least till some time back, was more favored toward T&D space. Okay. And you said in renewables as well in solar you said there could be opportunities. I mean, so is again is while we’ve seen solar capacity grow quite sharply and maybe faster than our ability to evacuate the power that we’re generating. I’ve not seen or I don’t seem to get a sense that it’s as attractive in the markets. Why is that? So, so if again in solar space I’ll actually divide this into two part. One is the solar at a whole the solar wind etc. Yeah. So, so I’ll I’ll I’ll divide it between the equipment suppliers and the developers. Developers are the one who are putting up capacity, right? So, they sign PPAs and they look at their economics very differently, right? It is a 25-year revenue stream for them. And there you’ll find probably opportunities. In terms of equipment suppliers, again, I go back to where government thought process was, right? They wanted to have meaningful increase in renewable capacity in India. If you think of it, post-COVID, we had our own challenges because China actually stopped supplying solar modules globally. Prices went up and we had a we had our own tailspin around that. Government then interjected and said that, you know, you I’ll give you incentives you put manufacturing capacities in India. Therefore, module manufacturing was incentivized and was also given lot of policy levers, right? And the idea behind all of this step, if I think of it, is that at some level government want to actually do lot of backward integration incrementally. So, they have given incentives which are for a definite period of time, maybe maybe 5-7 years. Within that time frame, whatever cash flow that you generate, government want you to reinvest that into backward integration. So, you move from module manufacturing to wafer manufacturing, cell manufacturing, things like that. And that is something as a ecosystem India is developing. Now, we have always seen and I go back to, you know, 2006-8 period where a lot of incentives were given by government to put up capacity. You always will find surplus CAPEX coming in. You know, and that actually leads to a lot of overcapacity in between. I think that is the reason why markets are not finding equipment suppliers as a primary attractive proposition because there is a fear that there is very strong demand traction, but there is oversupply that is coming in, which makes economics very, very difficult for people to make higher ROIs or better returns. And as we are all aware, right? And the stock returns are a function of corporate earnings, right? And and if you see concerns around that, that will lead to some sort of risk. And that is why people are moving away from equipment suppliers largely. Got it. So, and and I know that you’ve not touched on IT, for example, or you’ve not touched on oil and gas. I mean, in IT is of course outside all of this. So, is that because you’re no longer seeing that as a as a growth area and you’re focused more on growth from your perspective or some other reason? Uh sure. So, you’re right. I mean, for us, IT as a space, we have been underweight for almost last 2 years. And the reasons were very clear. We We were seeing reasonable headwinds around, you know, incremental investment in IT by global majors. It was also in the context that interest rate globally were going up, right? And therefore, their ability to spend was coming down on on technology. So, this is ahead of AI AI scare. And then you obviously had AI scare, right? I think we are entering a phase where at least over next 2 years, we’ll see IT services bouncing back. And in that context, we have started to reposition ourselves. So, if you even today, we are underweight on IT services, but we are now entering into companies where we see reasonable visibility of stronger growth and better valuations. Unfortunately for the larger IT services companies, a few headwinds have come to fore. One is obviously this AI headwind. Second also is that with this AI headwind and all, there are price deflation that has come through because these companies are also using, you know, large language models, etc., digitization. And therefore, the benefit of all of it is what they have to pass on in terms of their pricing to customer. So, the amount of work they might be doing more compared to They do more work, but they can only charge less. And therefore, there is a headwind around revenue, right? In that context, for the larger IT companies to grow meaningfully to justify valuations is becoming difficult. Also, if you see the proliferation of the GCCs in India, it’s almost doubled in last 4-5 years, right? Larger GCCs are historically the customers of larger IT services companies. And they’re going out and taking it back. Correct. So, there is a headwind around that as well. So, therefore, we are finding opportunities where, you know, mid-size companies still have very long leeway for growth. For example, then this is not a recommendation. I’m just highlighting what I have in my portfolio. We have entered Coforge in last few months. Just after the you know, IT de-rating story, right? It is because we believe that this is a name which can continue to deliver 15-20% growth over next 5-7 years. This was a name which was actually trading at two times price to earning multiple, right? So, price to earning growth multiple, right? And it has de-rated meaningfully. So, we find it attractive at maybe one time price to earning growth multiple. And therefore, we are entering that phase. But I I still think that all of these companies who are putting investment into AI right now have to make ROIs. And for that to happen, enterprise-level usage of AI has to increase. And for that to happen, you know, IT services company will come into picture. I just give you one example, you know, people talk about Anthropic and what they great work they have done. They actually have entered into a JV to start IT services company because they also realize that if all of these What about the Infosys? No, no, not just the Infosys. They on their own along with private equities, etc. So, these are the JVs or partnerships that they have done. They are starting a company in which Anthropic will have their own stake, right? And with the idea that whatever would they have done or developed will have to go at enterprise level and will need IT services. And therefore, IT services as an industry will actually still see lot of traction. I still think that we are maybe 12-18 months away from a larger quantum of work coming in. But that is space that I continue to now look more projectively at given that, you know, valuations have also corrected meaningfully. Right. So, let me go back to where we started. So, you talked about financialization, you talked about energy, and you talked about the overall consumer growth story. Is there any theme that ties these three at all? So, as I said, I mean, if you look at the the consumption itself, so maybe the the easier aspect is One is scarcity at least at this point. Energy scarcity, consumption is consumption, of course, and financialization is also consumption, I’m assuming. But but but if you if you just want to look at all of it and you want to identify one sector, actually that is the lending space. And I’ll tie it up because if you look at, you know, energy and the energy security and the kind of capex that we have to do, not all of it will come from equity. A reasonable part of it will come from debt. Therefore, lending business will come. Even on the consumption side itself, if I look at right now, right? As I said, the propensity of people to take credit to drive that consumption growth is increasing and therefore that also ties in with it. And even accounting for all of this, I mean, the financialization of saving will drive their money into banks and, you know, asset management companies thereof, will drive liquidity into the system, which will make credit more affordable. So, therefore, one piece that ties all these together is actually lending space in my view. Okay, so and and you’re saying when you think lending, don’t think only retail, but think lending as a complete Correct. offering. Okay, so and and when you talk to investors, I mean, your investors, I mean, you’ve got a couple of funds now operating. What are they looking for at this point? What is their experience been watching the markets and watching their returns in the last two or three years? And how are you managing their expectations? It’s been tough. I mean, as you rightly indicated, I mean, last two years for the market, it’s been consolidating meaningfully. And I think the returns are reasonably lower than what the normal expectation has been. Also, we have seen continued outflow from FIs, which which continues to play on mind, right? As to, you know, whether yeah, where valuations will settle, etc. Uh but you also have to look in the context that where the economy was in last 2 years, and it it was also going through a transition phase. Uh last 2 years, the corporate earning growth has been actually significantly lower, single-digit growth CAGR, right? Compared to what we have seen historically for India, which is known to be a growth market. I continue to believe it’s a growth market, uh where we expect between 13 to 15% corporate earning growth, right? Uh the context is that if you look at last three, four quarters, every quarter we have just improved our trajectory on earning trajectory, right? Uh it’s just that West Asia probably has come out as a blip right now. Uh but my expectation is that uh starting second half of this year itself, we’ll probably go back to our normalized earning growth. Without accounting for any re-rating in the markets, and the stock returns will largely mirror the earning growth trajectory, which is where we are saying going out and saying that, you know, over next 12 to 18 months, a reasonable expectation of between 12 to 14% CAGR return is what is realistically more feasible. And and you’re saying this, or are you also seeing this when you look bottom-up? And to go back to the starting point, when you look at companies, or you look at, let’s say, uh channel numbers and things like that, are you getting a sense that it’s heading in that direction? Yeah, so obviously. So, I’ll I’ll go maybe uh sector by sector. You look at banks or lenders, right? Uh maybe a year back, uh credit growth in India was 8%. It is touching 16% now, right? Uh we are now probably bottom of our NIM cycle because a lot of repricing of loan has already happened, maybe repricing of liabilities has also happened. Therefore, just the translation of this growth into earnings will probably reflect similar kind of numbers as you move forward. And that’s a large piece in India. Uh when you look at consumption, you look at, you know, uh data that come out very regular, which is around auto sales very very strong numbers that we see today. Even the likes of you know the consumer discretionary space trend and the other retailers continue to see double digit growth. What is also important to understand is that you know some of the staple companies have been impacted because of lack of inflation in last two years. See in moderate inflation in economy is always very good here. And the lack of inflation was not allowing them to pass on their increased cost to the customer. Given that West Asia has given them an opportunity because raw material price inflation went through the roof, they’ve been able to take price increase. So for example if you look at paint companies, you know they have taken between 12 to 14% price hike. If you think of company like HUL and all, 5 to 7% price increases. Therefore just the price inflation will drive revenue growth and therefore that will translate meaningfully into operating leverage and profit growth. We are finding opportunities where it is easier to look at companies delivering more than 20% earnings. So for example our portfolio we just do you know this math every quarter. Our expectation is that for our portfolio in general next year we should see between 25 to 27% earning growth and FY 28. Next year means 27. FY 28 another 23 to 25% earning growth. So there are opportunities that exist today which gives you meaningfully higher earning trajectory and across sectors. And therefore I think we are right now well positioned to see this expectation translate into real numbers. Okay. So last question which is really two questions. One is what are the negatives or the challenges that you’re seeing and secondly as you look outward and look beyond what are the newer areas that are emerging which could be potential investment opportunities down the line? Sure. So I think risk obviously you know some amount of macro headwinds still exist. It is also because I think at some level the fiscal deficit is becoming a constraint and also if if crude remains at these levels we are relatively okay. If crude spice back up then energy as a economic impact on of this energy will continue to start hitting us on CAD numbers etc. The other headwind I think it’s now well addressed is around rupee depreciation. Historically if you go back and we have seen across cycles right you find every 3 4 years one year where rupee depreciate meaningfully compared to USD. I think that year has already come through. We have already seen a double digit depreciation of rupee. Given the policy action that RBI has taken which is around FCNR B and ECB etc. We’ll probably find a reasonable number somewhere around these right? But if if there is continued outflow of you know capital from India then rupee will come under pressure as well and and given that we are normally CAD negative right? It continues to eat our economy in general. So I think apart from this I don’t see major headwinds in terms of domestic economy. Inflation is there but I think as I said a reasonable inflation is actually good for economy no doubt about it. As far as newer set of you know the companies or sectors are concerned I think India as a space will still have to find opportunities on exports. And largely on exports around not just the electronics which is where government has given a lot of benefit but also around other sectors like pharma, chemicals and specially I think the new age pharma molecules. So for example historically we have been known as generic companies right? Country which provide generic medicines. Few of the recent successes around new molecules which have very large addressable market is very welcome. So for example companies like you know Sun Pharma, Glenmark, Wockhardt have been able to develop products which are at global scale, maybe a billion dollar or multi-billion dollar opportunities. Of course, this takes lot of capital, effort, and time. But, I think the ability of our companies to go out, invest, and then reap benefit is something which will drive more investment into this space. So, I think manufacturing not just for India, but globally is some is a longer-term thing that I think market is underestimating today. What we are looking is more inward. But, if I just think of maybe next 10 years, manufacturing as a opportunity across segments is something which excites me meaningfully. Okay. And and and so, you’re saying that’s the broad big bucket of manufacturing stroke exports or exports stroke So, both. I think I I I think one will lead to the other. As As you start to manufacture in India, maybe for India first, the economies of scale then drives you to become competitive globally, and then you drive exports as well. So, I think you start first with, you know, inward-looking, replacing imports, and then you become more competitive and exports outward. And let me supplement that. Uh our valuations today uh fair, beaten down, stretched in comparison, in isolation? Sure. So, I’ll I’ll put it in two baskets. One is if you look at the overall market, right? Market are fair value. I think if you look at history, if you look at what multiples we are trading right now, maybe 18, 19 times broadly, uh is the long-term average for the market in general. And with the expectation that we’ll go back to normalize earning growth, right? And in that context, I don’t think we have very massive overvaluation or undervaluation. But, there are pockets in market. I think which which will you will find both. As I talked about, you know, some of the sectors, especially let’s say lending space and all, uh compared to history, are reasonably valued, maybe attractively valued today, right? But there are some pockets and narratives where valuations have become expensive. So so you’ll find both of those legs, but on the overall market level, I think valuations are more fair and therefore our communication to our investors also has been that we don’t expect a meaningful re-rating in the market going forward. Expect the corporate earning growth to translate into market returns and that’s where I said, you know, maybe 13-14% CAGR return is much more for next 18 to 24 months. And that’s a good optimistic note to end on. Thank you so much for Thank you so much. Thank you. [music]