First, we have to familiarize ourselves with Uday Kotak’s profile. He comes from a middle-class Gujarati family. At the tender age of 26, he spurned the offer of a lucrative job in a MNC and instead decided to be an entrepreneur. He single-handed started Kotak Capital. Today, the Kotak Mahindra group is a global behemoth with revenue of $2.8 Billion. The group has compounded shareholder value at a mind-boggling CAGR of 48% over a 29-year period.
Uday Kotak’s personal worth is $7.6 Billion (Rs. 49,400 crore).
It is obvious that we cannot take the prophecies of such an accomplished person lightly.
In his latest talk, Uday Kotak explains that India is today in a very good position owing to its low current account deficit, low fiscal deficit and a good monetary policy which is leading towards interest rates.
He also points out that India has a strong fundamental situation and a stable government in Delhi.
The important aspect is Uday Kotak’s prediction for the future. He confidently says “Over the next 6 to 12 months, I see a significant recovery happening in the economy as well”.
The implication of this prediction is that we should be heavily invested in top-quality stocks. The time is opportune now because the markets are in the doldrums and stock prices are beaten down. When the recovery is experienced, these stocks will surge to new highs and provide us with the much-needed mega gains.
If you are looking for stock ideas, there is no dearth of them. Kotak Securities has itself recommended a few top-quality stocks which score well on fundamental and valuation parameters. In addition, there are attractive recommendations from ICICI-Securities, Sharekhan, Edelweiss, IIFL, HDFC Sec etc.