Latest news with #MarcellusInvestmentManagers
CNBC
2 days ago
- Business
- CNBC
India market is in a vulnerable place now given slowdown in earnings and still high valuations
Saurabh Mukherjea, Founder and CIO of Marcellus Investment Managers talks about potential rotation into high quality large cap names in India the next few months. He also highlights the importance of the trade deal between the U.S. and India. Without that, the stock market and Indian currency are likely to face a major correction.
Economic Times
3 days ago
- Business
- Economic Times
Rakshit Ranjan on sectors to focus on to geopolitically risk-proof your portfolio
Rakshit Ranjan, Investment Management, Marcellus Investment Managers, says their portfolio's sectoral orientations currently favour healthcare, including hospitals, diagnostics, health insurance, and some pharmaceuticals, largely unaffected by geopolitical events. Select discretionary consumption areas are gaining from shifts from unorganized to organized sectors, alongside market share consolidation among top-tier companies. Changes in consumer wallet shares across categories represent broader macro trends, also demonstrating resilience to geopolitical risks. ADVERTISEMENT Let us begin with the market trajectory. The current year so far has been very volatile with a lot of unexpected events. We started off with the trade tariff thing which died down. Then, we had the geopolitical tension, Operation Sindoor. The international and other macros were not favouring our markets and there was a phase where the market was still directionless. But now the red flags on the geopolitical front have died down. What sense are you making out of the current market juncture in terms of market caps? Largecaps versus broad indices? Rakshit Ranjan: To begin with, it is very difficult to answer that question with a short-term perspective. There will always be events which are difficult to predict, correlations with fundamentals basis the event or share price movements basis the fundamentals and the event. So, I do not think we have an answer to this question from a short-term perspective. From a very long-term perspective, the economy on the whole is on a very solid footing – be it in terms of demographics, the consumption side, the investment side or the capex side from a long-term standpoint. Having said that, over the medium term, for the broader market there are a few risks that investors should be aware of. Risk number one is earnings growth, profit growth for broader indices. It tends to be very cyclical over long periods of time and it is coming off a cyclical high phase. FY21 to FY24 Nifty 50 earnings growth was in the mid-20s CAGR and that is a very high run rate. We have already seen a significant moderation in FY25 where it was mid to high single digits at best earnings growth for Nifty. So, there is a risk that we might be entering a bit of a mean reversion after a cyclically high phase of earnings growth from a medium-term perspective. There is also a risk around valuations for the broader market at about 20-22 times one year forward earnings for Nifty 50. So, combine these two, as long as investors manage to stay away from these kinds of risks or downside potentials, the long-term outlook remains solid and we at Marcellus are very much bottom-up stock pickers, benefiting from such an environment because quality delivers when tailwinds go away for the broader economy. Everybody is waiting for 9th July, the Trump tariff deadline. You have mentioned insulation from geopolitical risks, the kind of portfolio with less exposure there. Which are these sectors or stocks you have focused on which will see a limited impact of the tariffs? Rakshit Ranjan: Our sectoral orientations in the portfolio include healthcare at the moment. Healthcare as a broader theme which includes hospitals, diagnostics, health insurance plays, and a little bit of pharma. Here we do not see connections with geopolitical events in a meaningful way. ADVERTISEMENT Secondly, there are pockets of discretionary consumption which are benefiting from unorganised to organised shifts which are also at the cusp of market share consolidation for the better quality players. In the last five-six years, there have also been shifts in wallet shares for consumers, for households in terms of categories. These are broader macro themes, which are not exposed to geopolitical risks and in that respect, the bulk of our portfolio is not waiting for 9th of July. In terms of the risk-reward ratio, how are you trying to mitigate the risk factor in your portfolios? A lot of experts are looking at time correction in the broader market, specifically in the midcaps and smallcaps. We have been seeing broader markets outperform quite a few sessions but here we are talking about a long-term portfolio. Are you waiting for a time correction in certain pockets? What is your expectation on the first quarter results now? Rakshit Ranjan: First and foremost, before we come to valuations, what we want in the portfolio is classical quality attributes coming up in a bottom-up stock picking approach. Now, the classical quality attributes are moats, competitive advantages, and capital allocation which is in a way reinvestment of cash generated due to high quality moats and all of this being driven by a high quality management team. ADVERTISEMENT This approach to quality becomes even more important when in the external environment, tailwinds are not as strong because then it is not a broad-based market, it is a very narrow 'the winner takes all' approach; so that is the first piece. When it comes to valuations, we are not waiting for dips. We are fully invested in consistent compounders because we are hunting for two types of plays on valuation grounds. First and foremost, areas where quality is yet to be discovered and there are a few such companies in certain sectors where either because over the last three-four years we had a far more broad-based rally, quality was not adequately appreciated in the valuations or there might be a new disruptive high quality business emerging where the quality of the business is yet to be appreciated. Unfortunately, that is not a wide enough playground for us. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
21-06-2025
- Business
- Economic Times
Linked to Britishers: Saurabh Mukherjea explains why India obsessed with elite degrees despite it not guaranteeing success
India must shed its colonial hangover of obsessing over credentials and reconnect with its entrepreneurial roots, says Saurabh Mukherjea of Marcellus Investment Managers. He warns that in today's rapidly evolving economic landscape, elite degrees no longer guarantee success. Speaking on a recent Bharatvaarta podcast, Mukherjea said India's fixation on prestigious degrees and elite institutions—once seen as the path to upward mobility—has lost relevance. 'Forget the degree per se,' he said. 'Focus on abstract thinking skills, creativity, and articulation.' According to him, these are now the true drivers of traces the root of this obsession to India's colonial legacy. 'The British came in, created the civil service and the clerical babu class,' he noted. Post-independence, India's leaders adopted the same bureaucratic model, designing a system that churned out office workers instead of risk-takers. 'We were bred through our school and college years to be fit employees for large companies,' he said. 'That world is gone.'The shift is not optional but structural. 'Employment as a phenomenon is only about 200 years old,' he said. 'Before that, we were an entrepreneurial society. Everyone will have to become an entrepreneur now—by design or necessity.' Mukherjea pointed to historian Lakshmi Subramanian's recent book India Before Empire , which highlights how pre-colonial India thrived as a global trade hub with a strong legal framework and low capital costs. 'We had a vibrant, prosperous business community,' he explained. The British, he said, systematically dismantled it by promoting disdain for local entrepreneurs and propping up colonial-backed businesses. 'The British left, but their insidious legacy remained,' Mukherjea said. 'They convinced us that the best life is one of white-collar servitude secured through rote learning and degrees. That mindset lasted 75 years—but it's breaking now.' As India's startup ecosystem flourishes and more young people veer away from traditional career paths, Mukherjea sees a revival of India's entrepreneurial spirit as both overdue and inevitable. His message to the next generation: 'Stop struggling to validate your worth through elite certificates. Build things. Think differently. Own your future.'
Time of India
21-06-2025
- Business
- Time of India
Linked to Britishers: Saurabh Mukherjea explains why India obsessed with elite degrees despite it not guaranteeing success
India must shed its colonial hangover of obsessing over credentials and reconnect with its entrepreneurial roots, says Saurabh Mukherjea of Marcellus Investment Managers. He warns that in today's rapidly evolving economic landscape, elite degrees no longer guarantee success. Speaking on a recent Bharatvaarta podcast, Mukherjea said India's fixation on prestigious degrees and elite institutions—once seen as the path to upward mobility—has lost relevance. 'Forget the degree per se,' he said. 'Focus on abstract thinking skills, creativity, and articulation.' According to him, these are now the true drivers of success. Mukherjea traces the root of this obsession to India's colonial legacy. 'The British came in, created the civil service and the clerical babu class,' he noted. Post-independence, India's leaders adopted the same bureaucratic model, designing a system that churned out office workers instead of risk-takers. 'We were bred through our school and college years to be fit employees for large companies,' he said. 'That world is gone.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Fastest Selling Plots of Mysore from 40L | 40+ Amenities PurpleBrick Learn More Undo The shift is not optional but structural. 'Employment as a phenomenon is only about 200 years old,' he said. 'Before that, we were an entrepreneurial society. Everyone will have to become an entrepreneur now—by design or necessity.' Mukherjea pointed to historian Lakshmi Subramanian's recent book India Before Empire , which highlights how pre-colonial India thrived as a global trade hub with a strong legal framework and low capital costs. 'We had a vibrant, prosperous business community,' he explained. The British, he said, systematically dismantled it by promoting disdain for local entrepreneurs and propping up colonial-backed businesses. Live Events 'The British left, but their insidious legacy remained,' Mukherjea said. 'They convinced us that the best life is one of white-collar servitude secured through rote learning and degrees. That mindset lasted 75 years—but it's breaking now.' As India's startup ecosystem flourishes and more young people veer away from traditional career paths, Mukherjea sees a revival of India's entrepreneurial spirit as both overdue and inevitable. His message to the next generation: 'Stop struggling to validate your worth through elite certificates. Build things. Think differently. Own your future.'
News18
20-06-2025
- Business
- News18
Why Are Companies Quietly Retiring Staff In Their 40s? Business Coach Explains
Last Updated: A business coach has warned that companies increasingly view older employees not as valuable team members, but as a burden. If you're in your early 40s and working a corporate job, it's time to pay close attention. Many big companies in India are quietly redefining retirement, not at 60, but as early as 42 to 45. Business coach Rajiv Talreja warns that organisations increasingly view older employees not as assets, but as 'payroll cholesterol." With the rise of AI and evolving business models, jobs across all levels are being rapidly replaced. Talreja warns that if you don't have other sources of income, such as investments or rental properties, the early exit could put your family's financial future at risk. Getting a sudden job cut in your 40s can lead to an unexpected and unpaid retirement. Taking to X (formerly Twitter), the entrepreneur wrote, 'The retirement age in large corporates is not 60, it is between 42 to 45. Companies are laying off people in this age bracket because they are what the Finance team calls Payroll cholesterol. So if you are in a Corporate job and you don't have a portfolio of investments or a commercial property giving you a decent rental income or the idea and skills to start your own business, your family is at a massive risk, my friend." The retirement age in large corporates is not 60… it is between 42 to 45… Companies are laying off people in this age bracket because they are what the Finance team calls Payroll cholesterol… so if you are in a Corporate job and you don't have a portfolio of investments or a…— Rajiv Talreja (@rajivtalreja) June 19, 2025 Reacting to the post, a user wrote, 'At 45, when people come to realise this, they have lost time, stamina to learn other ways to make money. They end up starting a business as they don't have employment and fail. Hard truth in life." 'I strongly believe that one needs to start a side hustle very early in their career and move to it full time as soon as possible. That is the only way to avoid this looming risk," a comment read. An individual stated, 'The scenario has turned worse post-COVID. Organisations can find people in mid 30s who can do the same stuff for half of the salary and can work more. Indian corporate is doomed with politics and slave forming juggernaut." One more added, 'In Europe and the US, people can work as long as they want, because of their experience, expertise and ability to lead in business situations. Companies there are reluctant to let go of people with experience." Rajiv Talreja isn't alone in sounding the alarm. Saurabh Mukherjea, founder of Marcellus Investment Managers, has echoed similar concerns. He pointed out that across many industries, companies are increasingly relying on machines and software to cut costs. As a result, he believes that a full-time job may no longer be the most viable path for smart, hardworking professionals in the evolving job landscape. First Published:
