Chakri Lokapriya on 3 stocks you should continue to hold or buy some more

"On a consumer discretionary basis, whether it is Voltas or Chalet Hotels or Indian Hotels, consumption levels or volumes are still below pre-pandemic levels and pre-pandemic was not exactly a super hot economy either. It is clearly time to continue holding them or even buy some more of the consumer discretionary stocks," says Chakri Lokapriya, CIO & MD, TCG AMC

The entire consumer durable space has been fairly disappointing this quarter. Do you think air purifiers can become a big segment for some of these companies or is it still very nascent?
Yes, indeed you know this as a segment is a far bigger segment outside India and with pollution and all taking centre stage and now that it is not just a Diwali thing which causes pollution but other things do cause so I think that the focus in trying to improve the quality of life will create clearly demand for air purifiers and ionizers etc. and Havells and Voltas and all these companies are well placed because they also have the technology backups.

What are your top three large holdings and where are you looking at taking some chips off the table?
Large holdings are still in consumer discretionary as well as in specialty chemicals like SRF where the avenues for growth are immense, export is still very strong. SRF will benefit from China plus one strategy. Outside of that, this sector was not really fancied by FIIs about five years ago. Today, the company’s capabilities have increased across the industry levels.

Second, on a consumer discretionary basis, whether it is Voltas or Chalet Hotels or Indian Hotels, consumption levels or volumes are still below pre-pandemic levels and pre-pandemic was still not exactly a super hot economy either. Today interest rates are on the rise. Consumer loans and short term loans are very expensive. But volumes will pick up and it is clearly time to continue holding them or even buy some more of the consumer discretionary stocks.