Stocks to Buy | Strategic Bets, High Valuations: Amnish Aggarwal Breaks Down the Market Moves​

Amnish Aggarwal in an interview to ET Now said that as Torrent Pharma is looking to acquire a controlling stake in JB Chemicals from KKR, valuing the company at ₹25,689 crore, this translates to about 6.5 times EV to sales, making it an expensive deal. However, strategically, he believes it complements Torrent's portfolio in the domestic branded generics space with well-known drugs like Rantac and Nicardia.

Amnish Aggarwal also highlighted that the acquisition strengthens Torrent’s position in the CDMO (Contract Development and Manufacturing Organization) segment, enabling it to scale operations both in India and globally. He sees it as a long-term strategic move rather than a near-term value driver.

According to Amnish Aggarwal, the structure of the Torrent-JB Chemicals deal is complex — involving stake acquisition, an open offer, and eventual merger. He pointed out that Torrent would need to arrange ₹12,000 crore for the transaction, adding significant pressure to its balance sheet.

Amnish Aggarwal mentioned that while the deal may not boost stock performance in the immediate term, by FY27 the company expects to pare down its debt and benefit from synergies. He believes this could lead to a 2%–3% margin expansion, ultimately adding value to Torrent Pharma in the long run.

Amnish Aggarwal commented on the recent surge in Jio Financial Services' stock price from ₹250 to ₹330, despite little fundamental change in the company’s operations. He observed that such volatility isn’t new — the stock had earlier spiked from ₹200 to ₹350 before correcting.

As per Amnish Aggarwal, the rally lacks any solid business triggers. While the company is gradually exploring financial services like mutual funds and lending, there’s no major development to justify the sharp price movement. He attributes the rise more to speculation than substance

Amnish Aggarwal believes that the upcoming earnings season for IT services is unlikely to surprise investors. He expects commentary to remain similar to recent quarters, with no meaningful recovery in sight over the next few quarters.

Amnish Aggarwal noted that while segments like BFSI and AI-focused services might show some signs of stability, pressure is likely to continue in ER&D and Europe-linked auto-tech services. He feels some niche players may outperform, but overall, the outlook remains muted.

Amnish Aggarwal said that Mazagon Dock’s planned acquisition in Sri Lanka could be positive, especially for its commercial shipbuilding ambitions. He pointed out that India has limited capacity for building large vessels, and this deal could help fill that gap.

Amnish Aggarwal also emphasized that Mazagon Dock, with its experience in submarines and naval ships, stands to benefit from India’s strategic push in shipbuilding. However, he cautioned that the stock is richly valued and suggested that investors would need a 3–5 year view to generate meaningful returns.