Parag Thakkar, Senior Fund Manager at Fort Capital, outlined his investment strategy in the Indian telecom and banking sectors. Reliance Industries remains his top holding. While the market is divided on Vodafone Idea, Thakkar said he is taking an indirect approach to benefit from the company’s revival prospects.
Thakkar said he is building his position in Indus Towers, which he expects to gain if Vodafone Idea continues to operate. The government now holds nearly 49% in Vodafone Idea, and he believes their stance is decisive. “The intent will definitely be to save Vodafone,” he said, adding that “Indus Tower will benefit.”
He cited two factors supporting Indus Towers’ value. Bharti Airtel has been increasing its stake, and Bharti leaders have spoken about “deep value” in the company when compared globally. “If you see it on… market cap by cash profit basis, Indus Tower clearly offers great value,” he said.
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Thakkar also clarified why he does not directly invest in Vodafone Idea. “Because of the net debt to EBITDA number, we cannot buy it in the fund,” he said, pointing to financial constraints for institutional investors.
Thakkar also sees strong potential in public sector undertaking (PSU) banks, especially the State Bank of India (SBI). He highlighted that a large portion of SBI’s value is tied to its subsidiaries, with about ₹300 of the share price reflecting holdings in entities like SBI Life and SBI Cards. He values the bank’s stake in the National Stock Exchange at around ₹50,000 crore.
SBI’s 2026-27 (FY27) book value is expected to be near ₹585, suggesting the stock trades close to its future one-time price-to-book value. The bank’s return on assets has crossed 1%, while growth remains solid. SBI has seen margin improvement, helped by an 18% increase in low-cost current accounts and a 25% rise in fee income. Its large loan book of ₹44 lakh crore continues to be managed with a credit cost below 50 basis points (bps), which he believes is strong.
The bank has raised its credit growth outlook from 11-12% to 12-14%, supported by government and RBI policies. Thakkar called SBI a “pure play leverage play on India’s economy,” well-positioned to benefit from expanding gross domestic product (GDP).
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He added that SBI’s leadership remains confident about maintaining a 3% net interest margin by March 2026, even if the central bank cuts rates by 25 basis points.
Thakkar shared differing views on other stocks. On the Indian Energy Exchange (IEX), which gained after a tribunal hearing, he noted its long underperformance. “There were some desperate sellers also because the stock has not done anything,” he said, while adding that concerns over market decoupling are likely priced in. “I think that is in the price now.”
He expressed caution on Whirlpool, saying its parent plans to sell Indian assets to repay US debt. “I would not like to buy this kind of company in my portfolio,” he said.
In contrast, LG Electronics is his “very large exposure” in the consumer durables basket and the biggest holding in that segment for his fund.
For the full interview, watch the accompanying video
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