E-commerce stocks likely to gather momentum in long-term: Avinnash Gorakshakar

In a chat with ET Now, Avinnash Gorakshakar, Head of Research, Miintdirect.com, shares his views on markets. Excerpts:

ET Now: One space which I want to discuss with you is this entire buzz on e-commerce. Anything which is remotely got to do with e-commerce is on a tear; be it JustDial, Info Edge, Gati or Blue Dart. Is there merit in buying some of these over-rated and over expensive e-commerce stories?

Avinnash Gorakshakar: If you look at JustDial for example, definitely valuations are very expensive. But if one takes a two to three-year call and obviously sees the kind of entry barriers in this business and the kind of opportunity which lies, the big picture is e-commerce is a very large market. Indian companies have not scratched even a significant part of it. So if one were to take a two-to-three-year scenario, obviously one could definitely say that companies like JustDial could obviously be one of the few companies which could possibly gather greater momentum. But clearly only from a long term perspective. From a near term perspective, my sense is at least till FY16, most of these stocks have actually discounted their earning. So clearly, in the near term, probably unless some major event happens, these stocks would possibly move in a range.