Neutral impactResults
Earnings growth to play larger role in determining portfolio returns than valuation re-rating: Nilesh Shah
Economic Times 1 hr ago·13 Aug 2026, 12:21 pm
Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, suggests that for Indian investors, the primary driver of returns will be the actual growth in company earnings rather than a jump in stock valuations. He notes that current market valuations are neither cheap nor expensive, implying that a significant re-rating is unlikely in the near future.
This perspective is important for investors as it shifts the focus from chasing price momentum to identifying companies that can sustainably grow their profits. Since market multiples may not expand significantly, the real opportunity lies in the underlying financial performance of the stocks held in a portfolio.
Investors should therefore monitor quarterly earnings reports closely. Success in the market will depend on selecting companies that demonstrate consistent profitability growth, as this will be the main source of value creation in the current environment.
Affected stocks
Neutral1 stock
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns Kotak Mahindra Bank (KOTAKBANK).
- Category: Results.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update for Kotak Mahindra Bank worth tracking. Use the price and stock snapshot to gauge how the market is responding.
