Dipan Mehta identifies prospects in IndiGo as well as in travel technology, insurance, and renewable energy.

Dipan Mehta, Director at Elixir Equities, perceives the recent downturn in InterGlobe Aviation, which is the parent company of IndiGo, as a buying opportunity for investors. He pointed out that both his firm and its clients are invested in the airline. According to Mehta, the current decline in stock price is likely a short-term phenomenon that may benefit long-term investors.

He remarked that IndiGo is currently trading below its most recent peak, noting, “It’s trading about 10% below its all-time high,” and he added that “an additional 10% correction would provide some margin of safety.” Mehta anticipates that the aviation sector will address its near-term challenges and continue expanding as part of a low-cost industry characterized by favorable market dynamics.

Mehta identified several segments with potential for growth. In the travel industry, he highlighted various business models that are gaining popularity. “We’re very optimistic about Yatra Online,” he remarked, citing its status as a top online travel agency. He also pointed to BLS International, known for visa processing, as a strong opportunity in this sector.

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He noted that the insurance sector is witnessing increasing momentum. Companies like MediAssist and Sagility are on his radar due to their focus on claims processing in India and the US. Additionally, he mentioned that Policybazaar is “on the verge of achieving solid profitability” in the coming years as its platform scales up.

In fintech, Mehta brought attention to Zaggle Prepaid as a firm delivering impressive results. He believes companies with “a slightly differentiated business model” are likely to emerge as future market leaders.

Mehta also maintains an optimistic view on India’s clean energy capital expenditure theme. Companies involved in solar manufacturing like Waaree Energies and other recently listed firms, along with wind turbine manufacturers such as Suzlon and Inox Wind, are appealing due to an improving industry outlook.

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He mentioned that he is closely monitoring Pine Labs, viewing it as a company with robust technological capabilities and significant growth potential. Although it has yet to achieve consistent profitability, he sees a positive trend on the horizon.

“What would happen if these companies doubled their revenue in three or four years… and their costs remained stable?” he inquired, alluding to potential profitability gains. For the time being, though, his firm is holding off on any entry until clearer signals emerge.

For the full interview, watch the accompanying video

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