Prashant Jain on sectors that may get rerated and profit growth to expect going forward
India’s profits to GDP have almost recovered to 4.5% to 5% and are sustainable due to the profitability of most sectors including banks, commodities, capex, IT, pharmaceuticals, chemicals, metals and utilities. However, the power sector is a good bet for potential re-rating as it is still not trading like a growing business and its quasi-sovereign status gives them advantages for borrowing.
