“We were all fully invested,” Ved said, adding that the only incremental change was adding exposure to autos. “It looks like the cycle is now turning after a very long time. The combination of interest rate cuts, easy liquidity, and goods and services tax (GST) cuts is getting the mojo back.”
Ved said two-wheelers have seen a strong start, while four-wheelers are also showing early signs of recovery, especially in smaller car segments. “At the lower price point, things are beginning to improve. Once the auto cycle kick-starts, it usually lasts for some period,” he noted.
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On Force Motors, Ved said it was a “bottom-up pick” and not a broad bet on autos. “It was a stock long forgotten by most investors,” he said. Ved highlighted the company’s “new Urbania van” as a key growth driver, with strong demand from tourism, healthcare and the GCC segment. He also pointed out that Force makes engines for BMW and Mercedes and has a joint venture with Rolls-Royce for export engines. “It’s a great engineering company,” Ved said, disclosing that Alchemy and its clients hold the stock.
Ved believes IT stocks may be bottoming out. “Things have been better compared to expectations,” he said, citing relatively improved results from companies such as LTIMindtree and Persistent Systems. “Largecaps can probably give late single-digit to early-teen returns, with safety and cash flow.”
Alchemy continues to hold KPIT Technologies and Latent View Analytics
. Ved said, “KPIT had a soft patch, but things should bounce back.” He added that Latent View is a “derivative play” on AI and machine learning, likely to benefit as AI spending shifts from infrastructure to application layers.
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In the initial public offerings (IPO) space, Ved said Alchemy participated in Euro Pratik, a building materials company, and found LG Electronics India and Urban Company “interesting.” However, he noted that post-listing optimism remains high, and the firm would wait for better entry points.
Discussing gold, Ved said the firm prefers exposure through the Multi-Commodity Exchange (MCX). “For us, that was a more interesting and profitable way,” he said. Ved added that MCX has built a strong ecosystem with leadership in crude oil, gold, and silver trading. “Once you build a leadership position, it’s very difficult to disrupt an ecosystem like that,” he said.
In the capital markets segment, Ved said Alchemy holds positions in exchanges, asset managers, and wealth managers. “We like the business models because all of them have great operating leverage,” he said.
Ved also remains positive on the electronics manufacturing services (EMS) sector, despite high valuations. “It’s a sector we’ve been owning for quite a while now,” he said, mentioning holdings in Dixon Technologies, Kaynes Technology, and Syrma SGS.
For the full interview, watch the accompanying video
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