In this interview with ETMarkets, Saurabh Mukherjea, Founder, Marcellus Investment Managers, also talks about investing in a recessionary environment and why FIIs are no longer the prime driver of the Indian market.
Edited excerpts:
New-age stocks listed in the last few months are now going through a bad patch. Do you like any one of them after the correction?
We have nothing against new-age or old age. We just look for companies with clean accounts, good capital allocation and strong franchises. Right now, one simple proof of a strong franchise is profitability. I am not even saying show me the cash flow. I am saying boss
profit bana ke dekaho (Please, show me some profit). I am not even saying make profit at a consolidated level. I am saying
product level pe profit bana ke dekhao (be profitable at the product level) and these guys do not have it. Most of them do not have credible business models and basically most of them are ponzi schemes where a group of investors pass the parcel among themselves and keep marking to market these positions. The businesses do not have credible business models and my reckoning…
