According to reports from CNBC TV18, Atul Mehra, fund manager at Motilal Oswal Asset Management Company, revealed that more than 90% of the firm's money in the quick commerce space is allocated to Eternal, the company formerly known as Zomato. Mehra cited Blinkit's superior execution as the key factor behind this concentrated allocation, stating that the company's performance significantly outpaces peers in the space. He emphasized that profitability and cash flow matter more than revenue growth alone when valuing these businesses, with other players including Swiggy and Zepto receiving much smaller portions of the firm's allocation.
As reported by CNBC TV18, Mehra noted that the broader market has become more stock-specific, with performance varying widely even within a single theme. He pointed to electric vehicles (EVs) and quick commerce as examples, where one company in each space is pulling ahead while others struggle to keep pace. The fund manager highlighted that a large pipeline of initial public offerings (IPOs), qualified institutional placements (QIPs) and block deals is pulling investor attention toward primary markets alongside the secondary market. He also called NSE, which is preparing for an IPO alongside Jio ahead of Diwali, a very promising asset that has been a multi-bagger for the firm's portfolios that hold unlisted securities.
According to the report, Mehra said the firm has largely captured the shift from internal combustion engines (ICE) to EVs through holdings in Ather Energy and Samvardhana Motherson, though he described the latter as more of a manufacturing and diversification play, given its expansion into defence and aerospace. Regarding telecom, he named telecom as a long-term structural theme for the firm, citing what he called significant underpricing of tariffs relative to the value delivered to consumers. He expects the upcoming Jio IPO to trigger a re-rating for the sector, including listed rival Bharti Airtel, as tariff increases over the next 12-24 months translate into stronger earnings.
As reported by CNBC TV18, Mehra highlighted consumer discretionary as a stock-specific, bottom-up opportunity, and named select new-age financial companies as other key themes. He noted that private banks remain a promising but currently underperforming space, pointing to names such as HDFC Bank as having lagged recently despite attractive valuations. The fund manager's comments come as Motilal Oswal Asset Management Company manages assets worth over $1.5 billion.
