For our universe, we have almost a 20% sales growth, 17-18% EBITDA growth and 15-16% profit growth. The consumption recovery or the broad-based consumption trends is driving the earnings right now.The combination of price hikes and some excise duty changes will make some more broad basing for these companies to start operating back at the margins that they were doing earlier. Right now, a large part of the portfolio is focused towards companies where earnings growth is good because if this year remains a year of earnings recovery trend, then whichever stocks benefits, will keep doing well. Second, there could be a smaller part of the portfolio where earnings recovery may happen with a lag of one or two quarters but the underlying correction in those franchises have become reasonably steep. For example, we just spoke about OMCs which has a combination of consumption and retail financiers among others.

Source: Economic Times May 15, 2018 11:03 UTC