While Karwa sees robust passenger vehicle sales due to new product introductions, he anticipates a decrease in commercial vehicle sales.
Despite certain banks’ strong results and upbeat performance, earnings increases have been few and far between, according to Emkay Global’s managing director Krishna Kumar Karwa.
“Numbers have been very good for banks, and banks have recovered from their lows in the last 30-45 days, but in terms of valuation multiples, will we see further expansion of valuation multiples, or are most banks entering a territory of valuation multiples saturation?”
“I haven’t seen too many earnings upgrades across the board,” he noted.
In Q4FY23, HDFC Bank and ICICI Bank both reported positive results. HDFC Bank reported a 21% YoY increase in overall net profit to Rs 12,594.5 crore for the quarter ended March 31 on April 15.
When it comes to the car industry, Karwa believes that the’massive replacement cycle’ in the two-wheeler area is picking up, and that the segment will yield solid results.
While Karwa sees robust passenger vehicle sales due to new product introductions, he anticipates a decrease in commercial vehicle sales.
He also stated that the insurance industry has been in a state of stagnation for almost three to four years, but at good valuations, implying that one investor may look to invest in the market in the next two to three years.