Talking to ET Now, Dipan Mehta, Director, Elixir Equities mentioned the development is actual, however not essentially alarming.
“That’s proper and I feel not all IPOs are unhealthy,” he famous, stating that some venture-funded firms are hitting the market sooner than very best. Based on him, this has created considerations amongst value-focused contributors as a result of “they’re buying and selling at extraordinarily excessive valuations and have a tendency to disappoint” after itemizing.
Citing examples equivalent to Ola Electrical, City Firm, and Lenskart, Mehta mentioned the sample of post-listing corrections is seen. Even so, he believes fairly priced and profit-generating IPOs proceed to come back by way of. Traders, he suggests, ought to await just a few quarters of earnings historical past earlier than taking a name.
Mehta additionally highlighted the sustained recognition of leveraged IPO functions and quick flips: “There’s a complete class of buyers who… are flipping it on itemizing and that technique remains to be producing very-very good returns.”
EMS Shares: Robust Business, Stretched Valuations
Digital manufacturing providers (EMS) shares—as soon as absolute market favourites—have slowed down in latest months. However Mehta stays constructive on the sector.“It’s a dawn business… however the valuations are a bit daunting,” he mentioned. Firms equivalent to Kaynes and Dixon proceed to ship robust progress, however the worth multiples restrict consolation for contemporary shopping for.Nevertheless, he believes sharp earnings or a brief a number of compression might create engaging entry factors:
“These are nice shares to trace… we’re simply trying to find affordable valuation or margin of security.”
He added that the business itself stays essentially robust, with high quality administration and strong governance.
Fast Commerce: Excessive Danger, Excessive Potential Multibaggers
As Zepto readies for its itemizing and Blinkit retains the lead in buyer choice (Financial institution of America survey), the short commerce sector is once more in focus.
Mehta is optimistic—however with caveats.
“We’re very optimistic… however these investments usually are not for the weak-hearted,” he mentioned, stressing the necessity for deep conviction and a long-term horizon.
He in contrast the potential trajectory to CarTrade, a platform that delivered losses for years earlier than scaling and turning worthwhile. Fast commerce might comply with an identical path if unit economics fall into place.
“If they’ve the enterprise mannequin proper… these firms can ship fabulous returns,” he mentioned, advising buyers to take a basket strategy with about 4–5% allocation to such idea performs.
Consumption Traits: Jewelry Shines, Attire and Footwear Lag
The broader consumption sector has thrown combined indicators. Jewelry firms have outperformed, whereas attire and footwear have proven softer traits.
Mehta pointed to modern business-model retailers as attention-grabbing medium-term concepts. One identify on his radar is Unicommerce, which permits fast on-line transitions for companies. “It’s scalable… has an important observe file,” he mentioned, although he finds it costly at present valuations.
Amongst listed gamers, he mentioned Tier II and III targeted jewellers stay robust performers. “Kalyan Jewellers or Senco Gold… buyers might definitely take a look at these companies,” he mentioned.
He additionally talked about Sky Gold, an organization he and his shoppers are invested in, as a differentiated mannequin supporting giant jewelry retailers.
Talking to ET Now, Dipan Mehta, Director, Elixir Equities mentioned the development is actual, however not essentially alarming.
“That’s proper and I feel not all IPOs are unhealthy,” he famous, stating that some venture-funded firms are hitting the market sooner than very best. Based on him, this has created considerations amongst value-focused contributors as a result of “they’re buying and selling at extraordinarily excessive valuations and have a tendency to disappoint” after itemizing.
Citing examples equivalent to Ola Electrical, City Firm, and Lenskart, Mehta mentioned the sample of post-listing corrections is seen. Even so, he believes fairly priced and profit-generating IPOs proceed to come back by way of. Traders, he suggests, ought to await just a few quarters of earnings historical past earlier than taking a name.
Mehta additionally highlighted the sustained recognition of leveraged IPO functions and quick flips: “There’s a complete class of buyers who… are flipping it on itemizing and that technique remains to be producing very-very good returns.”
EMS Shares: Robust Business, Stretched Valuations
Digital manufacturing providers (EMS) shares—as soon as absolute market favourites—have slowed down in latest months. However Mehta stays constructive on the sector.“It’s a dawn business… however the valuations are a bit daunting,” he mentioned. Firms equivalent to Kaynes and Dixon proceed to ship robust progress, however the worth multiples restrict consolation for contemporary shopping for.Nevertheless, he believes sharp earnings or a brief a number of compression might create engaging entry factors:
“These are nice shares to trace… we’re simply trying to find affordable valuation or margin of security.”
He added that the business itself stays essentially robust, with high quality administration and strong governance.
Fast Commerce: Excessive Danger, Excessive Potential Multibaggers
As Zepto readies for its itemizing and Blinkit retains the lead in buyer choice (Financial institution of America survey), the short commerce sector is once more in focus.
Mehta is optimistic—however with caveats.
“We’re very optimistic… however these investments usually are not for the weak-hearted,” he mentioned, stressing the necessity for deep conviction and a long-term horizon.
He in contrast the potential trajectory to CarTrade, a platform that delivered losses for years earlier than scaling and turning worthwhile. Fast commerce might comply with an identical path if unit economics fall into place.
“If they’ve the enterprise mannequin proper… these firms can ship fabulous returns,” he mentioned, advising buyers to take a basket strategy with about 4–5% allocation to such idea performs.
Consumption Traits: Jewelry Shines, Attire and Footwear Lag
The broader consumption sector has thrown combined indicators. Jewelry firms have outperformed, whereas attire and footwear have proven softer traits.
Mehta pointed to modern business-model retailers as attention-grabbing medium-term concepts. One identify on his radar is Unicommerce, which permits fast on-line transitions for companies. “It’s scalable… has an important observe file,” he mentioned, although he finds it costly at present valuations.
Amongst listed gamers, he mentioned Tier II and III targeted jewellers stay robust performers. “Kalyan Jewellers or Senco Gold… buyers might definitely take a look at these companies,” he mentioned.
He additionally talked about Sky Gold, an organization he and his shoppers are invested in, as a differentiated mannequin supporting giant jewelry retailers.
