Veteran Investor Sabharwal Bullish on Auto and Hospitality, Cautious on Defense and Precious Metals

Veteran investor Sandip Sabharwal recently shared his market insights across various sectors in a conversation with ET Now, offering a mixed outlook for different industries.

Defense Sector

Sabharwal highlighted Bharat Electronics as the top pick for Indian defense investments. While shipyard companies show promising earnings visibility, he cautioned that their valuations remain on the higher side.

Hospitality Sector

The hospitality sector is expected to see a strong second half, driven by:

Increased wedding demand
Upcoming events

Sabharwal favors:

Indian Hotels Company
Budget chains like Lemon Tree
Booking platforms such as MakeMyTrip

Food Delivery

Sabharwal expressed caution regarding Swiggy, citing:

Unpredictable cash flows
Volatility around results

Auto Sector

Sabharwal maintains a bullish stance on the auto sector, predicting a 2-3 year secular growth trajectory. Factors contributing to this positive outlook include:

GST cuts
Lower interest rates
Higher disposable income

Precious Metals

Sabharwal advised caution in the precious metals market:

Warned against buying gold and silver at current elevated prices
Described the market as being in "bubble territory" after gold crossed 3500
Recommended waiting for consolidation before adding exposure

Sector Outlook Summary

Sector	Outlook	Key Points
Defense	Mixed	Bharat Electronics favored; shipyard companies overvalued
Hospitality	Positive	Strong H2 expected; Indian Hotels Company, Lemon Tree, MakeMyTrip recommended
Food Delivery	Cautious	Swiggy faces unpredictable cash flows and result volatility
Auto	Bullish	2-3 year growth trajectory expected due to favorable factors
Precious Metals	Cautious	Advised against buying at current prices; wait for consolidation

Investors are encouraged to consider these insights while making investment decisions, keeping in mind that market conditions can change rapidly and individual research is crucial.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.37%	+0.76%	-5.25%	-12.39%	+4.71%	+683.17%

Indian Hotels Company Limited (IHCL) is reportedly in discussions with Adani Group to operate two new hotels planned for Ahmedabad Airport. This potential collaboration marks a significant development in the hospitality sector, bringing together two major players in the Indian business landscape.

Project Details

Aspect	Details
Location	Ahmedabad Airport
Number of Hotels	2
Investor	Adani Group
Planned Investment	₹15.00 billion
Potential Operator	Indian Hotels Company Limited

Strategic Implications

This move could represent a strategic expansion for Indian Hotels, allowing the company to strengthen its presence in Gujarat's largest city. For Adani Group, partnering with the experienced operator of Taj Hotels could enhance the quality and appeal of their airport infrastructure development.

Market Impact

While the discussions are still ongoing, this potential partnership highlights the growing trend of airport-based hotel developments in India. It also underscores the continued investment in hospitality infrastructure, despite recent challenges faced by the sector.

As these talks progress, investors and industry observers will be keen to see how this collaboration, if finalized, might impact both companies' market positions and the broader hospitality landscape in India.