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Valuations, Disruptions & The Search For Growth
Good morning. Stock prices are at all-time highs — but that doesn’t mean everything is working. From consumer staples to IT, some of India’s most trusted sectors are under pressure, while the real momentum is shifting elsewhere.
On The Core Report: Weekend Edition, Govindraj Ethiraj speaks with the Managing Director & Co- Head at Kotak Institutional Equities, Sanjeev Prasad, about why market valuations are stretched, what’s disrupting legacy brands, and how investors should rethink portfolios in a time of structural change. They dive into the rise of high-income consumption, the limits of market sentiment, and why financials, healthcare, and focused plays in aviation and food delivery offer better risk-adjusted bets today.
THE CORE REPORT: WEEKEND EDITION
Why The Market Looks Overpriced
Kotak’s view: India’s market has been overvalued for 18+ months, especially in consumer-facing sectors.
Growth rates are not strong enough to justify current valuations.
Brands are losing pricing power, and old distribution moats are breaking down — but markets haven’t fully priced that in.
The Consumer Slowdown Is Real — And Structural
For companies like HUL and Asian Paints, revenue growth is flat or negative.
Disruption is hitting every layer: from D2C brands to private labels to evolving buyer habits.
“Market structure has changed. The old rules no longer apply.”
Why Earnings — Not Flows — Still Matter
India’s market has been overvalued for 18+ months, especially in consumer-facing sectors.
Growth rates are not strong enough to justify current valuations.
Brands are losing pricing power, and old distribution moats are breaking down — but markets haven’t fully priced that in.
The Consumer Slowdown Is Real — And Structural
For companies like HUL and Asian Paints, revenue growth is flat or negative.
Disruption is hitting every layer: from D2C brands to private labels to evolving buyer habits.
“Market structure has changed. The old rules no longer apply.”
What’s Still Working In India’s Economy
High-income consumption is strong: think Zomato, Indigo, hospitality, and healthcare services.
Manufacturing and electronics have long-term promise, though still early-stage.
Private sector capex remains weak — due to fewer opportunities and fewer risk-takers.
As Sanjeev Prasad Puts It:
You can’t manage portfolios the way you used to. Disruption is everywhere — and the cost of being slow is high.
Click below to watch the full podcast
ICYMI
THE SIGNAL DAILY
Who’s Buying A ₹10 Lakh Watch In India?
Time Is Everywhere — So Why Are Watches Booming?
Once a necessity, watches have become more of a statement. Phones, laptops, even refrigerators now tell time — but that hasn’t slowed India’s growing obsession with luxury watches.
Swiss Watches, Indian Buyers
According to Market Brew, between January and May 2025, Swiss watch exports to India hit ₹1,100 crore, marking a 10% year-on-year jump.
In 2024, that number was ₹2,600 crore — showing that demand isn’t slowing down.
Who’s Buying Them — And Why?
High-net-worth individuals are driving this demand, especially in metros and tier-1 cities.
For some, it’s about status and self-expression.
For others, it’s a form of alternative investment — with certain rare models appreciating in value over time.
Are Watches Really An Investment?
In this episode, we unpack how luxury watches are entering the wealth playbook — alongside art, vintage cars, and collectibles.
We also explore the rise of watch trading, waiting lists, and price appreciation in India’s growing secondary luxury market.
THE MEDIA ROOM
Cars, Phones & Cinemas: Dolby’s India Play
From Theatre Seats To Smartphone Screens
Dolby is betting big on India — not just in cinema, but in cars and on mobile devices too. In this episode, John Couling explains how Dolby Atmos and Dolby Vision are changing the way we watch, listen, and tell stories — and why Indian audiences are central to that evolution.
Pune To Pan-India: The Dolby Cinema Rollout
India’s first Dolby Cinema opened recently in Pune.
More are on the way — part of Dolby’s broader push to elevate premium theatrical experiences.
Partnerships with filmmakers like S.S. Rajamouli are helping reshape what immersive storytelling means in India.
Beyond The Big Screen: Dolby Goes Mobile & In-Car
Dolby tech is now embedded in phones, TVs, and even vehicles — as in-car entertainment surges in markets like India and China.
Mobile devices aren’t just for watching — they’re becoming creative tools for filmmakers and content creators.
R&D, Imax, And What’s Next
Dolby is doubling down on R&D for adaptive, platform-agnostic experiences.
Couling responds to IMAX comparisons and clarifies what makes Dolby’s approach unique: creator-first, scalable, and multisensory.
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