Bullish about companies in midcap space: Tushar Pradhan, HSBC AMC

In a chat with ET Now, Tushar Pradhan, CIO, HSBC AMC, shares his views on midcap stocks. Excerpts:

ET Now: While we have been discussing your broad outlook on equities and you are favouring global as well as local equities, your focus on relative value in the midcap space has caught my attention. What is it that you like there right now?

Tushar Pradhan: When we talk about an economy which is bottoming out and when growing from here, the growth rates for quality midcap companies happen to be the most stellar and the most sustainable over the next two or three years when the economy will start to take upsteam. So that is the space which is very interesting from our point of view.

Midcap is a very generic term so generally people just calculate market cap to call every company within that range as a midcap but here what I would like to emphasise is that quality in terms of the sustainability of the business enterprise, a certain competitive advantage and a significantly superior management are recipes for a very interesting company to look at any point of time. This is a space we believe where we will find some very big winners for us in the next three-four years.