Value is gradually turning out to be a premium. And market needs to be more value based than growth driven.
Market veteran Shyam Sekhar is trying to make a forceful point when he says so.
"We are in a market where it should be more value than growth driven because growth anyway is paid adequately for," Shyam Sekhar said.
The consumer sector as a whole gets a big thumbs-up from him.
"It has done very well because of the base effect, the pre-GST slowdown in the market as well as the demand effect on the base. All these things have created a nice optical place for consumers. People have really paid 10-20 per cent more based on the current earnings," he reasoned.
Is there too much of froth in the housing finance companies (HFC) space? The segment, which was once ruled by a handful of players, is now home to at least 25-30 players.
He is absolutely convinced that HFCs are going to become one of the most commoditised parts of banking in future.
"If the business becomes commoditised, higher valuations may at best taper down gradually," Shyam Sekhar said further.
He also sees competition intensifying as more players troop in. And this could keep established players on edge because "there is no great differentiator in the space".
How? "A loan is a loan, it is all about how much you are going to borrow and at what rate you are going to lend it. The customer is somebody who is going to lend from someone else if it is available at even 0.25 per cent less," he explained.
Shyam Sekhar doesn't subscribe to the view that commodities need to be seen as one basket. He is all for an individualistic treatment of the same.
As he put it: "You should look at each item or commodity separately and understand the global dynamics, industry dynamics, the government policy and also which are the companies positioned to take advantage of all these things."