Page, Eicher Motors and Glaxo Consumer to do well on earnings uptick: Manish Sonthalia

In a chat with ET Now, Manish Sonthalia, Sr VP & Head-Equity Portfolio Management Services, MOSL AMC-PMS shares his portfolio strategy. Excerpts:

ET Now: What are the top three holdings in the midcap fund you manage.

Manish Sonthalia: It continues to remain as Page, Eicher Motors and Glaxo Consumer.

ET Now: You need to own Eicher, Page and Glaxo Consumer for the next two years, because the run-up in all these three names has been quite extraordinary?

Manish Sonthalia: Yes, but earnings growth would be coming about. The argument is that, if earnings are going to double in the next two years for Page or Eicher, it does make sense to hold on to these names, because at two years forward earnings, you would be buying them at quite a reasonable rate. It is above 20 times for Page and it is about 15 times for Eicher.

Page is a 60% ROE company and Eicher is a good 25% plus ROE company. So you are looking at doubling of profits and in case of Glaxo Consumer you are looking at a healthy 20% profit growth for many years to come, not just for the next two years, but maybe for the next five years.