October 2, 2025
Saurabh-Mukherjea-Marcellus-Investment-Managers
Saurabh Mukherjea has advised us not to be influenced by the doomsday scenario about the CoronaVirus being portrayed by economists. He has assured that demand will roar back as soon as normalcy returns and stocks will surge back into glory. He has also recommended three stocks which are powerhouses and a good buy now
Saurabh Mukherjea has advised us not to be influenced by the doomsday scenario about the CoronaVirus being portrayed by economists. He has assured that demand will roar back as soon as normalcy returns and stocks will surge back into glory. He has also recommended three stocks which are powerhouses and a good buy now




CoronaVirus will soon be a distant memory

Anecdotal evidence is suggesting that people are already beginning to shrug-off the impact of the CoronaVirus and are slowly but steadily resuming their normal lives.

In Shanghai, for instance, which was the nerve center of the CoronaVirus a few months ago, tickets for Disneyland are sold out, which implies a return to normalcy.

Similarly, Cruise Ships are reporting a 600% surge in demand.

Even restaurants are thronging with people.

Saurabh Mukherjea confirmed that things are indeed recovering across the Globe.

If you see across the world, look at China, Italy or even other beaten down European economies, the recovery post lockdown seems to be pretty rapid; so two-wheeler demand, car demand, washing machine, fridges, Disneyland sell outs, Airbnb pickups, these are coming back very sharply once people come out of the lockdown,” he stated.





Auto stocks are a good bet

Saurabh opined that the auto sector looks attractive because there is strong data across the world that post Covid lockdown, auto demand roars back.

The auto sector I would say is probably looking the tastiest I have seen it in five-six years,” he said.

In fact, Hero MotoCorp and Maruti Suzuki, the market leaders, are both reporting robust demand for their products from consumers.

We can also consider tucking into auto ancillary stocks like Amara Raja and/or Exide because they will face humongous demand from OEMs as well as from the replacement market.

Forecasts about bleak GDP forecasts are useless

Saurabh cautioned us not to be unduly influenced by the bleak GDP forecasts because there are all backward-looking and not forward-looking.

That GDP is not going to grow this year is obvious. We are going to lose April, May and most probably June as well. But the question is can we rebuild this economy from August, September, October and I think based on what we are seeing in other countries, the answer looks to be almost an emphatic yes,” he advised.

Do not get caught up in the bleak forecasting community who are making forecasts which are obvious. If you shut down the economy for two months, obviously you will have bleak GDP growth but that is neither here nor there. What the utility of those forecasts is, I fail to understand at this juncture,” he added.

Saurabh pointed out investors who had dared to buy stocks on the worst day, when the Sensex plunged to the lower circuit, are basking in massive gains of nearly 25%.

From that day when the market hit circuit down, we were very optimistic. The market is up about 25% from that day and the overall macro situation is a lot better than the kind of whole bleak forecasting industry would have you believe,” he said.



Some industrialists are trying to arm-twist the Govt for concessions – Don’t be worried by their grim tone

Some wily industrialists like Sanjiv Bajaj are taking advantage of the scenario to arm-twist the Government and obtain concessions and relief packages for their respective sectors.

Saurabh advised us not to be influenced by their grim statements about the state of the economy.

Now coming on to Sanjiv Bajaj’s comment vis-à-vis RBI line of funding. As a smart businessman, obviously he is playing from a position of strength and he is urging the RBI to lower the cost of funding further for NBFCs. It is something that will help the whole industry but it will also help the market leader Bajaj Finance disproportionately. Bajaj Finance alongside HDFC is another unquestioned market leader in the NBFC world. They will benefit disproportionately from an RBI line of funding,” Saurabh stated.

Three stocks which are looking “incredibly juicy and attractive

It is obvious that stocks which have been pummeled the most (without an adverse change in fundamentals) will the first ones to surge when normalcy returns.

These stocks are Bajaj Finance, HDFC Bank and Kotak Bank.

Specifically the sorts of stocks that we love to buy like Bajaj Finance, HDFC Bank, Kotak Bank, which I have advocated for a long time on your channel look incredibly juicy and look incredibly attractive at these levels,” Saurabh stated.

He also pointed out that this is the first time in his distinguished career of 12 years on Dalal Street that he had seen HDFC Bank at these bargain basement levels.

If you are looking at people returning to work in the second half of May and normalcy in demand returns by July-August, the overall market looks attractive; specifically high quality financials in the NBFC world like Bajaj and in banking, HDFC Bank and Kotak,” he said.





Why is Bajaj Finance so “incredibly attractive“?

Saurabh revealed that Bajaj Finance is a big holding for the Marcellus PMS Fund.

He gave a detailed commentary on why he finds it “incredibly attractive“.

In very simple terms, any company’s stock price broadly discounts the next 20 years of profits in very simple terms. Bajaj Finance is almost halved; it basically suggests that the market is implying that Bajaj Finance would not make money for the next seven-eight years. That to me does not make any sense. Why does it not make sense? If we look at the secondary yields in the CV markets, both on three months commercial paper and on one year commercial paper, Bajaj Finance alongside HDFC is trading at the lowest PEs,” he said.

He also pointed out that if one looks at the liability franchise of Bajaj Finance, a little more than 92% of the liabilities are locked in for three to five years, which means that it will not require funds at high cost from the market.

He also pointed out that Banks are happy to lend to premium NBFCs like Bajaj and HDFC, so there is no dearth of funds, should the need arise.










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