Ravi Dharamshi is bullish about green energy, solar & EV stocks

[Ravi]

Ravi Dharamshi says energy transition is a giga theme in which he has highest conviction. Cos will become so big in 5-7 years that their present topline will become the bottomline. Valuations are cheap. Solar modules, green hydrogen, ethanol, EVs are themes to bet on

"You have talked about energy transition being a 30-year investment opportunity, given the kind of rotation which has happened in the market and will continue to be so. That is the nature of the beast. Would you say that it makes sense to have the largest allocation now in your portfolio to the energy transition theme as opposed to any other?
Ravi Dharamshi: So, that is a matter of choice or that is a matter of your conviction in the theme. And we do have very, very high conviction. So, we have a high percentage in particular theme. But, of course, you have to diversify and be present in at least three-four themes, because you do not want a particular regulation or some competitive dynamics to go against you and that can end up ruining your entire portfolio.

So, from the perspective of being well diversified and ensuring that one event does not damage your portfolio, you should be spread across a few themes. But yes, at this juncture, our conviction level is highest in energy transition. But remember, energy transition is a very-very broad theme, we need to still identify a sector or a subsector that will be the beneficiary of that trend and from the next five years perspective, again, there are technologies which are still not reached that inflection point in terms of either cost or technology. So, we will wait until that materialises and then place our bets."