Now Reading: Ikigai CIO Tibrewal turns bullish on smallcaps after Q1 earnings surprise
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Ikigai CIO Tibrewal turns bullish on smallcaps after Q1 earnings surprise
Ikigai CIO Tibrewal turns bullish on smallcaps after Q1 earnings surprise
Pankaj Tibrewal, founder and CIO of Ikigai Asset Managers, has turned constructive on Indian equities, citing a strong Q1 earnings season and easing foreign investor selling. He says 398 of the top…
The Story in Brief
Pankaj Tibrewal, founder and CIO of Ikigai Asset Managers, has turned constructive on Indian equities, citing a strong Q1 earnings season and easing foreign investor selling. He says 398 of the top 500 companies reported results, with topline growth crossing 20 per cent, the strongest in 12 quarters. Bottom line growth is healthy at 13-14 per cent despite oil marketing companies reporting cumulative losses of Rs 17,000-18,000 crore.
Tibrewal told Business Today that earnings breadth is improving, with 56-57 per cent of companies reporting over 15 per cent profit growth, up from 45-50 per cent in recent quarters. He expects Q2 momentum to sustain, with July demand picking up. His smallcap fund, launched in March during extreme pessimism, has delivered 25 per cent returns in four months. He manages Rs 4,200 crore.
The Indian Opinion
Indian markets love a hero narrative, and Tibrewal's bullishness fits neatly. But caution is warranted. He admits OMCs dragged earnings, and he flags risks in autos, consumer and IT. The Q1 topline surge partly reflects price hikes after supply chain disruptions, not pure volume growth. Watch whether July's demand pickup translates into Q2 earnings, especially for smallcaps. One number to track: whether upgrades outnumber downgrades after the full earnings season. That will separate a real recovery from a trap.
Sources (3): businesstoday.in, businesstoday.in (2), businesstoday.in (3)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
