Calling them cash machines, which are generating cash year after year, Murarka said IT valuations are very attractive at present.
SUMMARY
Pankaj Murarka, Founder & CIO at Renaissance Investment Managers on Tuesday said he finds IT stock valuations attractive and sees internet stocks as reasonably-valued, citing strong growth potential. Murarka's management and advisory firm, which manages close to Rs 5,000 crore in assets under management, has about 10 per cent exposure to the information technology sector, while its exposure to internet stocks is at a similar level, taking the combined allocation to IT and internet stocks to the high teens.
Murarka said IT firms are of high quality, with probably no leverage on the balance sheet and a lot of cash on balance sheets. Calling them cash machines, which are generating cash year after year, he said IT valuations are very attractive at present.
The analyst finds valuations pretty reasonable for internet stocks in the context of the growth that the companies are expected to deliver over the next 7-10 years.
In an exclusive interview to BTTV, Murarka explained: "It just fits into a framework of companies delivering healthy growth, pretty high growth in case of internet. In the IT, while the sector has been in a midst of earning slowdown, we think growth will pick up going forward in the second half of this year and into the next year."
Murarka's Renaissance, meanwhile, has the biggest exposure at around 30 per cent to financials, given the high weightage of the sector in the Nifty50, at about 37 per cent. Besides, he said he likes automobile as a sector because post the GST cut last year the demand momentum has been pretty healthy. He said there will be some headwinds because of the rising fuel prices but Murarka still believes the medium-term demand will sustain for auto makers.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
FAQs
+
Why does Pankaj Murarka find IT stock valuations attractive right now?
Pankaj Murarka believes IT stocks look attractive because many IT companies are high-quality businesses with strong balance sheets, low or no leverage, and large cash reserves. He described them as cash-generating companies and feels current valuations do not fully reflect their long-term strength.
+
What is Murarka’s view on internet stocks in India?
Murarka finds internet stocks reasonably valued when compared with their expected growth over the next 7 to 10 years. He sees strong growth potential in the segment, which makes these companies fit well within his investment framework.
+
How much exposure does Renaissance Investment Managers have to IT and internet stocks?
Renaissance Investment Managers has around 10 per cent exposure to the IT sector and a similar level of exposure to internet stocks. Together, the combined allocation to IT and internet stocks is in the high teens.
+
What is the largest sector allocation in Murarka’s portfolio?
The biggest sector exposure in Renaissance’s portfolio is financials at around 30 per cent. Murarka highlighted that financials carry a high weight in the Nifty50, where the sector accounts for roughly 37 per cent.
+
What is Murarka’s outlook on the automobile sector?
Murarka is positive on the automobile sector, saying demand momentum has remained healthy after the GST cut last year. While he expects some pressure from rising fuel prices, he believes medium-term demand for auto makers should continue to hold up.
Published on: May 19, 2026 2:44 PM IST
此内容由惯性聚合(RSS阅读器)自动聚合整理，仅供阅读参考。 原文来自 — 版权归原作者所有。