Stocks to Buy | Growth vs. Value: Digant Haria on EMS, PSUs and Beaten-Down Winners
Digant Haria, in an interview to ET Now, said that the EMS space has become one of India’s biggest manufacturing success stories. It has consistently grown despite a high base, supported by Make-in-India and PLI schemes. He highlighted that Dixon Technologies posted triple-digit growth, especially in the mobile segment. The company’s management is confident about future margin improvements.
According to Digant Haria, valuations remain a key concern, with companies like Dixon trading at 70–80x earnings. Yet, such premiums reflect strong, sustained growth. Digant Haria adds that for investors uncomfortable with high P/Es, there are proxy plays. Ram Ratna Wires and Whirlpool are examples he suggests for indirect exposure to EMS growth.
Digant Haria points out that most PSUs haven't participated in the recent market rally, barring names like Coal India and ONGC, which have started moving up. He believes the mining sector holds promise. Digant Haria explains that global re-industrialisation will drive demand for metals, and Indian PSUs like NMDC and MOIL are well-placed to benefit.
Digant Haria sees value in PSU banks, especially Canara Bank and Bank of Baroda. He notes that Bank of Baroda trades at just 0.8x FY27 book value, implying significant upside. However, Digant Haria cautions that these banks may take one or two quarters before showing a strong recovery. Patience, he says, will be essential for investors in this space.
Digant Haria highlights small finance banks like Equitas, Ujjivan, and Northern Arc. He notes these firms suffered earlier but should benefit now from falling interest rates and easing regulation. He also points to beaten-down consumer stocks. Digant Haria mentions Whirlpool, Heritage, and Sheela Foam as names that could rebound after years of underperformance.
Digant Haria advises blending high-growth sectors like EMS with value-driven PSUs and recovery plays. This approach, he believes, balances risk and return in today’s market.
He also suggests looking beyond headline names. According to Digant Haria, proxy plays and overlooked consumer stocks could deliver meaningful upside.
Digant Haria concludes that EMS is India’s most visible Make-in-India success. Despite high valuations, he sees long-term promise in companies like Dixon. He also reiterates his preference for mining PSUs and undervalued financials. Digant Haria encourages investors to position for future growth by staying diversified and patient.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
