Bandhan AMC trimmed its IT exposure by 12% to 8% of the portfolio, boosting financial sector holdings to 35%.
Karthik Kumar, Senior Vice President at Bandhan AMC, said the move was driven by a need for clearer revenue visibility and faster growth in banking and capital markets. He added that the fund remains wary of IT’s current valuation levels, which are perceived as high relative to global peers. The shift reflects a broader strategy to capture upside in more defined growth sectors.
Bandhan AMC keeps its IT allocation low but still holds key names, citing the fact that valuations have become ‘reasonable relative to the domestic market’ yet are still ‘somewhat expensive.’ The firm plans to re‑enter the sector only after accelerated revenue growth or a valuation correction.
In contrast, the fund is eyeing the healthcare space, especially CDMOs, after earnings upgrades and a favourable earnings season. The team highlighted the attractiveness of domestic healthcare companies amid geopolitical uncertainty and market volatility. Hospitals remain a cautious bet due to drug‑pricing policy uncertainty, which could compress earnings and multiples. Bandhan AMC will reassess its position once policy clarity emerges.
Looking ahead, Bandhan AMC will monitor IT valuations and earnings momentum, aiming to rebalance when growth accelerates. The fund also plans to review its healthcare exposure after the next earnings cycle.