The market’s impressive pullback post the pandemic has caught many off guard, including Neelesh Surana, who manages Rs.177.89 billion at Mirae Asset Mutual Fund. Surana has topped the Value Research 10-year ranking table three times in succession. Today, he believes that earnings of leading companies will grow 85% over the next three years and is optimistic about the financial sector. In his latest interview, he shares how Mirae has positioned its portfolio and the risk factors that he is tracking closely
Are you surprised by the way the market has moved over the past one year? Is it even justified?
We are not surprised by the direction of market recovery. However, the pace of the upmove was not expected. We were of the view that COVID-19 was a ‘one-off event’, which would impact one or two years of earnings. With this assumption, when we did a DCF valuation of businesses, the fall in intrinsic value was marginal compared to the severe correction in the stock prices we have seen during the pandemic. The price correction has been significantly more than v