Long & Short Markets: Long & Short Markets: Raamdeo takes over unicorns; realty as a contrarian bet and more

The bulls are picking up full speed, but at the same time, a few are turning cautious. On the other hand, some bears are still being invested. Sounds like a paradox? That’s reality. There’s no better way to look at that than the retail and institutional benefits seen in the Zomato unicorn publicity issue. Read more on Raamdeo AgrawalApproach the unicorns, advice from a veteran fund manager on what to do when bulls are making bets by sector and upcoming sector in this week’s edition of ‘Markets long and short term’.

A unicorn’s path to profit
Veteran investor Raamdeo Agrawal says that falling marginal costs are a key factor in scaling profits. This also applies to unicorns. Once the critical phase of lightning scaling and revenue stream is in place, falling marginal costs are key to increasing Ebitda margins, he added. For this, a positive cash flow is important.
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Realty as an opposite bet

Low interest rates and low housing demand are similar to pent-up demand in the real estate sector. Nilesh Shah, MD & CEO, Envision Capital, says that in the coming quarters, a surprise could come from the construction and infrastructure space. He said that home developers are currently undervalued because despite strong home buying demand in the December and March quarters, overall demand still looks subdued.
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Get some off the table!

Conditioning a portfolio to defend during a bull run is like buying insurance. It can seem like a dead investment (unnecessary defensive thinking) when things are not going as expected. But ask their seasoned investors about past bear markets! It only takes one loss to realize the importance of having insurance. The same is true of hedging against a bear market when all parameters signal a low valuation. Dalal Street Veteran VK Vijayakumar write what to do now when the bulls are running enchanted.
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Production boom?
Anand Shah, the head of PMS in ICICI AMC Prudential. Complementing this trend is a push from the government, such as– Made in India, PLI, lower tax rates for new investments, lower corporate tax rates and now low interest rates, the veteran fund manager added.
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Unpopular PSU

India’s largest money manager has plummeted on slow-moving, high dividend yields PSU stocks accumulated over the past year, for better businesses available in the same field. The decline can also be due to the passive source of money reducing the load when the composition of the benchmark indices is changed.
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