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Why Growth is the Only Game in Town?
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Good morning. India’s stock market has hit record highs — but beneath the surface, the real story is about where growth is coming from, and where it isn’t. The old rules of value investing are fading, and the hunt for alpha is being redefined.
On The Core Report: Weekend Edition, Govindraj Ethiraj speaks with Prateek Agrawal, MD & CEO at Motilal Oswal Asset Management, about why investors should shift focus from consumption to production, why earnings growth—not brand strength—drives performance, and what makes sectors like renewables, defence, and manufacturing the next big opportunities in Indian equities.
THE CORE REPORT: WEEKEND EDITION
Growth > Value: The Investing Philosophy
Value opportunities are limited in today’s market.
Growth investing is driving returns — especially with tailwinds like low inflation, weakening dollar, and falling global interest rates.
“Markets follow earnings growth. That’s the only thing that compounds.”
Alpha Is All About Discipline And Mistakes
Beating the index by 3–4% over 3–4 years requires consistent outperformance and fewer errors.
“Alpha is earned by avoiding mistakes — not just picking winners.”
Every position has to justify 20%+ CAGR in earnings to stay in the portfolio
Where The Next Decade of Growth Lies?
The future is in:
Renewables
EVs and electronics manufacturing
Defence and capital goods
Healthcare and senior living
Financial infrastructure like mutual funds and brokers
Investing Is People-first
In emerging sectors, “you bet on the person — not just the balance sheet.”
Look for entrepreneurs with fire in the belly and a focused plan, especially in new-age sectors.
For Investors: What To Do Differently
Don’t over-diversify — too many funds = paying fees to own the index.
Pair one strong growth fund with one strong value fund — and rebalance based on market cycle.
Avoid chasing consistency. Instead, seek focused, conviction-driven portfolios.
As Prateek Agrawal puts it:
India is blessed with entrepreneurs. Growth is volatile, but that’s where the money is made. Markets are — and always have been — slaves to earnings.
Click below to watch the full podcast
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HOW INDIA’S ECONOMY WORKS
JRD Tata To Vijay Mallya: The Story of India's Airlines Business
From JRD’s Vision To Today’s Turbulence
India’s aviation story began with Air India under JRD Tata — a symbol of elegance and aspiration.
But decades of mismanagement, shifting policies, and indecision have battered the sector.
Even under Tata’s return to Air India, the road to revival is bumpy.
Policy Over Pilots: Why Airlines Keep Failing
Airlines like Jet Airways, Kingfisher, Air Deccan, and Air Sahara rose fast — and crashed just as dramatically.
Behind the scenes: poor regulatory oversight, ad hoc government policy, and ill-timed corporate decisions.
Mergers were messy, and bailouts came too late — or not at all.
Lessons From A Reporter Who’s Seen It All
Ashwini Phadnis reflects on years inside the beat — tracking missed opportunities, political interference, and boardroom drama.
From Kingfisher’s cash burn to Jet’s silence in crisis, he breaks down where things went wrong — and why.
Indigo: The Outlier
Amid the chaos, Indigo stands out. Why?
Disciplined fleet strategy
Low-cost, high-efficiency model
Staying out of glamour, and focused on scale
Can Air India Turn It Around?
Under Tata, the brand has promise — but must fix operational reliability, crew morale, and customer experience.
For it to truly fly again, it needs more than nostalgia — it needs performance.
THE SIGNAL DAILY
A Quiet Revolution In Higher Education
Over the past two decades, a wave of liberal arts universities has challenged India’s traditional “streamed” model of college education.
It began with FLAME University in 2007, followed by Azim Premji, Shiv Nadar, and Ashoka in 2014.
Now, a new entrant — Nayanta University in Pune — will welcome its first batch in 2024.
What Sets Them Apart?
These institutions emphasise interdisciplinary learning: economics majors take philosophy, data science students explore political theory.
They follow a Socratic, discussion-based pedagogy, offer smaller class sizes, and often replicate elements of the US liberal arts model.
The goal? Produce well-rounded, critical thinkers — not just narrowly trained graduates.
But What About Jobs?
Placement outcomes have improved, but vary widely across institutions.
Liberal arts grads are entering consulting, public policy, journalism, development, academia, and increasingly, tech and product roles.
Soft skills like communication, writing, and problem-solving are strong — but employers still need to be educated about these degrees.
High Cost, High Stakes
Fees are steep — ₹30–40 lakhs for a 3-year undergraduate degree is the norm.
That raises real questions about return on investment, especially for families outside India’s urban elite.
Scholarships exist, but accessibility and equity remain core concerns.
What Parents, Students, And Employers Are Asking
Do these colleges deliver real career outcomes — or just elite signalling?
Is a broad, flexible education better preparation for an uncertain job market?
And most crucially: what does “success” look like beyond engineering or commerce tracks?
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