Multiple rerating over in defence, railway stocks, but these are sustainable businesses: Prashant Jain

Prashant Jain, believes defence stocks are highly sustainable businesses with growth tailwinds and government support, but their PE multiples have already rerated. Jain is optimistic about large, technology-driven financial institutions like SBI and ICICI, which are well-placed to leverage the current digital environment. While defence manufacturing and railways are long cycle businesses, Jain anticipates they will still grow between 10-15% per year over the next 5 to 10 years, even if there is no further increase in PE multiples.