Sandip Sabharwal Highlights Top Investment Picks Amid Concerns Over Zepto IPO
Banks, Bharti, IT: Sandip Sabharwal's top picks & why he is worried about Zepto IPO
Image: The Economic Times
Market expert Sandip Sabharwal recommends investing in Axis Bank and ICICI Bank, citing their undervaluation. He sees potential in the IT sector with a 12-15% upside, while expressing caution towards the Zepto IPO, questioning its path to profitability at a $7 billion valuation.
- 01Sandip Sabharwal identifies Axis Bank and ICICI Bank as top banking picks due to their attractive valuations.
- 02The IT sector is viewed as oversold, with Sabharwal projecting a potential upside of 12-15%.
- 03Bharti Airtel is highlighted as the only viable telecom investment, while Vodafone is deemed unable to achieve sustained profitability.
- 04Sabharwal raises concerns about the Zepto IPO's $7 billion valuation, questioning its profitability prospects.
- 05He emphasizes the need for Indian investors to focus on domestic loss-making companies rather than overseas IPOs like SpaceX.
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Sandip Sabharwal, a prominent market analyst, sees significant investment opportunities in select private banks, particularly Axis Bank and ICICI Bank, which he believes are undervalued. He highlights the potential impact of the FCNR(B) deposit schemes, suggesting that an influx of approximately ₹5 lakh crore could alleviate deposit growth concerns for banks. In the IT sector, Sabharwal notes that stocks are technically oversold, with a projected upside of 12-15% despite short-term growth pressures from AI disruptions. He recommends Bharti Airtel as the sole investable telecom stock, dismissing Vodafone as structurally unfit for profitability. Sabharwal expresses particular caution regarding the Zepto IPO, which has filed for a valuation of ₹73,000 crore (around $7 billion), questioning the company's pathway to profitability and advising investors to be wary of high valuations of domestic loss-makers compared to international IPOs like SpaceX.
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Investors in India could see significant shifts in banking and IT stock valuations, influencing their investment strategies.
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