Consumer names will find lots of investor support going ahead: Taher Badshah, Motilal Oswal AM

In a chat with ET Now, Taher Badshah, Senior Vice President & Co-Head Equities, Motilal Oswal AM, talks about the consumer space.

ET Now: At the moment there is lot of action and excitement in consumer names, especially in consumer durable and consumer staple names. On paper it may appear otherwise, but these are actually very expensive groups. Yet the appetite to buy into some of these stocks is quite insatiable. How do you look at it?

Taher Badshah: Quite a lot of money seems to have been chasing these names in the recent past. To that extent, the moves have been pretty sharp and quick. It has made the valuations of some of these stocks look a little expensive, especially from a shorter-term perspective.

But there are plenty of stocks in this space for one to make a good selection from. This is a space which we believe can deliver a lot of growth in the coming years. In the consumer discretionary — urban consumer discretionary — space, there are many names which hold out the best promise in terms of investment over the next couple of years.

Many of these companies are sitting on a lot of operating leverage. So, there could be earnings surprises. These may, on the trailing basis, probably justify some of the valuations as and when the results are out.

So, to that extent, these companies will continue to do well and will find a lot of support from investors.