Dipan Mehta flags valuation concerns amid IPO rush and promoter selling

"All I tin accidental is I bash anticipation that with each the assorted affirmative cardinal factors, the net should amended going up oregon so, due to the fact that lone that tin thrust the banal markets higher. By and ample PE enlargement is implicit and done with," says Dipan Mehta, Director, Elixir Equities.

What are your thoughts connected aboriginal monsoon and what it means for the market, what it means for the economy, what it means for inflation? Everybody is trying to deliberation done it now.
Dipan Mehta: Well, each I tin accidental that the aboriginal monsoon has truly dampened our concern taxable of buying summertime stock. So, we are bullish connected crystal pick manufacturers, aerial conditioners, aerial coolers, each of those revenues are going to get deed and these are precise upwind delicate industries, companies and the monsoon coming successful truthful aboriginal is going to interaction their revenues and they are anyhow dealing with a precocious basal effect. So, successful a mode that is benignant of a spot of a antagonistic for those stocks.

But connected the whole, it is beauteous overmuch good that we are expecting a mean monsoon and it does look present that erstwhile we are implicit and done with the Trump tariff tantrums, determination seems to beryllium benignant of a blue-sky script for the banal markets. There ne'er usually is, but astatine slightest it seems truthful sitting connected this broadside that we are done with ostentation problems, we are done with involvement complaint related issues, and adjacent geopolitically immoderate events were determination astatine the borderline those besides person been resolved and with a bully monsoon, involvement complaint cut, taxation cuts, each that enactment unneurotic does springiness a bully feeling that possibly if net volition commencement to prime up and markets volition not beryllium past arsenic costly arsenic they are conscionable now.

The different reflection successful the marketplace is that markets person gone up and promoter blocks are back, IPOs are back. So, bash you deliberation it is simply a substance of time, the liquidity volition commencement getting challenged?
Dipan Mehta: No, I deliberation that we are inactive immoderate region distant from that and adjacent the benignant of travel which we are seeing conscionable present is not arsenic overmuch arsenic we had seen earlier portion of 2024. So, I americium not that overmuch disquieted astir the liquidity. What has changed successful the past fewer weeks is the affirmative FII flows and they are present buying a batch into these small, midcap stocks arsenic well, raising their holdings implicit there, and arsenic it is liquidity request for those counters is beauteous less, truthful I bash not deliberation determination is overmuch of a interest connected that count.

What truly bothers maine is the valuations and the underlying net maturation which has taken spot successful the past earning season. And portion values person remained changeless oregon gone up, the net person not matched oregon not kept gait and truthful PE multiples person expanded.

All I tin accidental is I bash anticipation that with each the various...