WhiteOak Capital Group Founder Prashant Khemka maintains a constructive outlook on Indian equities, emphasizing quality company selection over market-cap segment predictions. According to reports from CNBC TV18, Khemka stated that investors should focus on picking quality companies rather than trying to predict which market-cap segment will outperform. The firm does not take a top-down approach to investing, instead focusing on identifying businesses that can consistently outperform their respective sectors. As reported by CNBC TV18, Khemka noted that different market-cap segments tend to outperform at different points in the cycle, making it difficult to predict winners with confidence. Rather than making broad market calls, the investment team prefers to create value through careful stock selection.
Healthcare continues to be one of WhiteOak's preferred sectors due to the wide range of listed businesses across pharmaceuticals, hospitals and diagnostics. As reported by CNBC TV18, the sector offers enough diversity to identify companies capable of generating superior returns. Khemka also sees attractive opportunities in select non-banking financial companies (NBFCs), particularly smaller lenders serving lower-income borrowers. Many of these companies witnessed sharp corrections following concerns over unsecured lending and rising oil prices, but valuations remain appealing in several cases. Within industrials, WhiteOak continues to like private-sector defence companies and selected capital goods and machinery businesses. The firm also remains positive on parts of the new-age economy where it continues to find quality businesses.
On the global front, Khemka acknowledged that AI-linked stocks have become more volatile after a prolonged rally. According to reports from CNBC TV18, while sentiment around artificial intelligence has weakened in recent weeks, he believes it is too early to predict whether the trend will continue. Despite the uncertainty, Khemka remains constructive on the technology sector over the long term. He expects companies to continue spending on technology and believes AI will reshape the industry rather than reduce its importance. "My view is some of these midcap companies where execution is very strong they will transform faster than some of the larger companies," Khemka explained, noting that those who can transform their workforce capabilities faster and in a more nimble manner will gain market share during the AI transition. He added that some midcap companies where execution is very strong will transform faster than some of the larger companies during the AI transition.
Khemka highlighted the growing pipeline of investment opportunities in India's private markets, with manufacturing emerging as the most active area for entrepreneurs over the past few years. As reported by CNBC TV18, this spans precision engineering, industrial components and specialised manufacturing. He added that chemicals, healthcare, fintech and defence are also generating significant entrepreneurial activity, supported by favourable policy changes and expanding domestic opportunities. Khemka believes the growing base of innovative businesses could reshape several industries over the next decade as more companies build capabilities across manufacturing and technology. "The number of entrepreneurs in India... the entrepreneurial energy is amazing here," Khemka noted, emphasizing the remarkable entrepreneurial ecosystem in the country.
