ET Alpha Wealth Summit | Quality has rarely been this cheap relative to junk; 3 themes to buy now: Saurabh Mukherjea

At the ET Alpha Wealth Summit, Marcellus Investment Managers' Saurabh Mukherjea argued that a multi-year 'low-quality rally' in Indian markets is unwinding, with investment-grade stocks now historically cheap relative to subpar peers as India enters a prolonged economic stress period. He outlined three high-conviction themes: export-oriented Indian manufacturers trading at ~20x trailing P/E (2019 levels) with a $5 trillion EU FTA opportunity; US and European small-mid caps at their widest discount to large-caps in 30 years; and high-quality Indian financial services at PEG of 1. He specifically named HDFC Bank, ICICI Bank, Bajaj Finance, and ICICI Lombard as preferred vehicles.