More constructive on Pidilite as compared to Adani Ports: P Phani Sekhar, Angel Broking

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on markets. Excerpts:

What about an Adani Port or a Pidilite Industries, do you like the businesses that these companies do?

P Phani Sekhar: I like the businesses of both Adani Port as well as Pidilite. However, the entire concern is with what value you attribute to these businesses and how far in the future do you start discounting.

For a business like Adani Port, viability will only be known or at least will be seen while it is generally assumed that it will be viable but viability will be seen may be three to four years down the line and may be acceptable ROEs will build up 10 to 12 years down the line, so how much you discount today is the central question.

As far as Pidilite is concerned it is more in the theme of the FMCG stocks that have generally done well and to that extent Pidilite has also done well. Being a strong brand, it will enjoy good run going forward but I am generally more constructive on Pidilite as compared to Adani Ports.