He pointed out that IndiGo is trading below its recent highs. “It’s approximately 10% below its all-time peak,” he remarked, further adding that “an additional 10% correction would create a margin of safety.” Mehta anticipates that the aviation sector will address short-term challenges and will continue to thrive as part of a low-cost industry with favorable market dynamics.
Mehta emphasized various segments where he sees promising potential. In the travel sector, he mentioned several business models that are gaining momentum. “We have a very optimistic outlook on Yatra Online,” he noted, highlighting its status as a leading online travel agency. He also cited BLS International, which specializes in visa processing, as another strong contender in the industry.
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Mehta sees growing momentum in the insurance sector as well. Companies like MediAssist and Sagility are on his watchlist due to their emphasis on claims processing in the Indian and US markets. He remarked that Policybazaar is “on the verge of becoming consistently profitable” in the coming years as its platform continues to grow.
In fintech, he singled out Zaggle Prepaid as a company delivering impressive results. He believes that businesses with “a slightly differentiated business model” will emerge as future leaders in the market.
He also maintains a positive outlook on India’s clean energy capital expenditure theme. Solar manufacturing companies such as Waaree Energies, along with newly listed counterparts, and wind turbine manufacturers like Suzlon and Inox Wind, appear attractive given the improving industry landscape.
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Mehta is closely monitoring Pine Labs, referring to it as a company with robust technological capabilities and significant growth potential. Although it has not yet achieved consistent profitability, he envisions a positive trajectory ahead.
“What if these companies double their revenue in three or four years… and their costs stay steady?” he questioned, pointing to potential profitability upside. For now, however, his firm is awaiting clearer signals before considering an entry.
For the full interview, watch the accompanying video
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