No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, October 25, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Most excited about these business segments in next 1-2 years: Raamdeo Agrawal

by TheAdviserMagazine
3 months ago
in Business
Reading Time: 4 mins read
A A
Most excited about these business segments in next 1-2 years: Raamdeo Agrawal
Share on FacebookShare on TwitterShare on LInkedIn


Raamdeo Agrawal, Chairman, Motilal Oswal Group, says the capital market segment is experiencing significant growth, particularly in QIP and IPO activity, alongside a booming AMC sector. The AMC business is expanding rapidly, with AUM growing from approximately Rs 75,000 crore last year to Rs 155,000 crore. While AUM-based businesses and wealth are flourishing, the broking side remains relatively subdued. In 2022, you said that capital markets is one theme that is going to go great guns. But within the capital market theme and considering your group is now so diverse and very large as well, what segment of your business are you most excited about in the next one to two years? Raamdeo Agrawal: Till last year September, broking was going full blast. The volumes were exploding like never before and then suddenly thanks to regulatory action, it came to a halt in terms of expansion and there was a little bit of contraction also. Then the IPO market, QIP market and the entire new issuance market is booming big time. Now there is a shortage of paper and so much demand for fresh paper that the IPO market is booming. Right now the biggest action is in the capital market segment where the fresh raising of QIP and IPO is really booming and second, is the AMC segment. Our AMC is growing at 70-80% per year. Last year, at this point of time, we were about Rs 60,000, 70,000 crore AUM, maybe Rs 75,000 crore. As of yesterday, it is Rs 155,000 crore AUM. So, this kind of expansion is happening at a 60-70% scale. If you grow at 50% even on Rs 150,000 crore, you are looking at Rs 2,25,000 crore next year. So, it is a very exciting time. All the AUM-based businesses are growing. All the AMCs are growing. Wealth is growing. As I said, the capital market is growing. Only the broking business is somewhat muted at this juncture.

The party will continue for the longer run, but in the near-term, after the RBI bazooka, one would have thought corporate performance is going to give it a leg up and demand will come back swiftly. But it has not been witnessed in Q1 earnings so far. Is that a concern for you because that is also going to have a bearing on the speed at which the market moves.Raamdeo Agrawal: That is a major concern because markets are very richly valued. We need to support good earnings growth and wherever earnings growth is there, despite rich valuations, the market is giving salami (saluting it). We started tightening credit flow in the economy sometime last year after Q1 24-25 and the full impact of that is visible now. Now we are seeing the credit flow in single digit; housing loan growth is about 2.5%, 3%; automotive growth is literally flat; now gross direct tax collections are up only 3-4%.

So, multiple high frequency data are showing that the economy is slowing down and all the authorities are aware of it and that is why we see very determined efforts by monetary authorities as well as fiscal guys to loosen the purse. But it takes two-three quarters. I would think that by the busy season in September, October, November when all the credit flow is in place and lower credit cost is also passed on to the consumers, the demand will start picking up.

Live Events

Low oil price, low inflation, everything is falling in place, but two-three quarters are needed for the party to start again. Nobody knows when the party will start, but the probability is much higher that the second half of the year should be picking up in the economy. Up until then, you think it is going to be a very range-bound move?Raamdeo Agrawal: Yes, the foreigners in any case have other options to go to America, to go to some other emerging market, to Europe as defence spending is happening there. So, there are a lot of options and that is why their entry-exit is very muted in the sense that they are not committed to coming to India. They love the Indian story, but since the valuation does not justify the current low earnings growth rate, the multiples are still fine if you are able to deliver about 15-17% aggregate corporate earnings growth in the second half. So far, what is your analysis? Where are the positive surprises, if at all, in earnings? Maybe not this quarter, maybe next?Raamdeo Agrawal: It will start with the financial sector because the banking sector is the biggest. They count for almost 30% of the corporate profits. The banks are in a very healthy shape. Just that they are growing at 10-12% or 8% to 10% they are not growing at 15%, 20%, 25%, so that gap on this large size like you might have seen the profits of say icici Bank was very good. HDFC Bank was also reasonably good but then their numbers are like Rs 16,000 crore, 18,000 crore for the quarter. These are the giants. When the credit growth starts at about 15-17%, each of these banks will not only have topline growth a little faster but also the operating leverage will come to play and their profits growth will also be very good, more like 20%, 22% and that gives a push to the aggregate earnings and along that even consumer companies like whether it is a QSR, whether it is a Nestle, whether it is a Lever, all sorts of consumer companies.How can you have an economy growing for five, seven, eight years at about 6.5% and 7% and yet none of the consumer companies are doing well broadly whether durable or non-durable. I think there is some kind of a disconnect, I do not understand why it is happening so. But authorities must also be thinking about how to go about it. My view is higher interest rates, lower petrol-diesel prices – they need to cut petroleum prices reflecting the $65 to $70 crude oil prices – and that will give multiple relief to the consumers so that they will have a little more purchasing power than earlier time.



Source link

Tags: AgrawalBusinessexcitedraamdeosegmentsYears
ShareTweetShare
Previous Post

5 AI Tools Every Startup Should Use to Humanize Their Brand in 2025

Next Post

S&P 500 Notches New Highs but Underlying Weakness in Growth Stocks Raises Concern

Related Posts

edit post
Why Southwest stock is down while American Airlines is soaring

Why Southwest stock is down while American Airlines is soaring

by TheAdviserMagazine
October 25, 2025
0

At the end of the day on Friday, Southwest Airlines ended the week starting on Oct. 20 with its shares...

edit post
LendingClub, ABTC surge, Bitfarms, FHI slide: financials wrap

LendingClub, ABTC surge, Bitfarms, FHI slide: financials wrap

by TheAdviserMagazine
October 25, 2025
0

Oct. 25, 2025 10:10 AM ETIBN, FHI, SFBS, LC, ENVA, KNSL, BTC-USD, BITF, UPST, CRCL, ABTCBy: Max Gottlich, SA News...

edit post
Insiders Are Scooping Up Shares of a Miner, a Driller, and a Biotech

Insiders Are Scooping Up Shares of a Miner, a Driller, and a Biotech

by TheAdviserMagazine
October 25, 2025
0

Denys Yelmanov / iStock via Getty Images While insider buying is typically slower when markets are near all-time highs and...

edit post
I helped design rocket engines for NASA’s space shuttles. Here’s why businesses need AI as trustworthy as aerospace tech

I helped design rocket engines for NASA’s space shuttles. Here’s why businesses need AI as trustworthy as aerospace tech

by TheAdviserMagazine
October 25, 2025
0

When I was an aerospace engineer working on the NASA Space Shuttle Program, trust was mission-critical. Every bolt, every line...

edit post
Bharat Rasayan board okays stock split, issue of bonus shares

Bharat Rasayan board okays stock split, issue of bonus shares

by TheAdviserMagazine
October 25, 2025
0

Agro-chemical firm Bharat Rasayan's board has approved the sub-division of its equity shares and issue of bonus shares in a...

edit post
F&O Talk | Nifty takes breather after Diwali gains, 30,000 still a likely destination by next Diwali: Sudeep Shah

F&O Talk | Nifty takes breather after Diwali gains, 30,000 still a likely destination by next Diwali: Sudeep Shah

by TheAdviserMagazine
October 25, 2025
0

Markets continued their upward momentum for the fourth straight week, ending the Diwali-shortened trading period with modest gains. Optimism dominated...

Next Post
edit post
S&P 500 Notches New Highs but Underlying Weakness in Growth Stocks Raises Concern

S&P 500 Notches New Highs but Underlying Weakness in Growth Stocks Raises Concern

edit post
Tax Guide for Independent Contractors

Tax Guide for Independent Contractors

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Popular investing strategy losing appeal with stocks at record finding

Popular investing strategy losing appeal with stocks at record finding

0
edit post
Why Southwest stock is down while American Airlines is soaring

Why Southwest stock is down while American Airlines is soaring

0
edit post
2025 List of All 46 Energy Stocks Now From Major Energy ETFs

2025 List of All 46 Energy Stocks Now From Major Energy ETFs

0
edit post
Another Violent Outburst – Democrats Inciting Civil Unrest

Another Violent Outburst – Democrats Inciting Civil Unrest

0
edit post
White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

0
edit post
How Many Dimes Are In 5 Dollars?

How Many Dimes Are In 5 Dollars?

0
edit post
Why Southwest stock is down while American Airlines is soaring

Why Southwest stock is down while American Airlines is soaring

October 25, 2025
edit post
White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

October 25, 2025
edit post
Popular investing strategy losing appeal with stocks at record finding

Popular investing strategy losing appeal with stocks at record finding

October 25, 2025
edit post
How Many Dimes Are In 5 Dollars?

How Many Dimes Are In 5 Dollars?

October 25, 2025
edit post
A Brief History of the Enduring American Embargo against Cuba

A Brief History of the Enduring American Embargo against Cuba

October 25, 2025
edit post
LendingClub, ABTC surge, Bitfarms, FHI slide: financials wrap

LendingClub, ABTC surge, Bitfarms, FHI slide: financials wrap

October 25, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Why Southwest stock is down while American Airlines is soaring
  • White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
  • Popular investing strategy losing appeal with stocks at record finding
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.