Aswath Damodaran , Professor, Stern School of Business NYU , says the healthcare sector has the potential to be the young, exciting and next big go-to sector in India. Damodaran is keeping his eyes open for the next exciting young company. He wants to see how Indian markets are receptive to a business that requires more infrastructure investment and does not deliver stuff as quickly as the app-driven businesses.
Damodaran would be looking for opportunities here because these companies are undervalued at the time of the offering and do not look as exciting. The Stern School of Business professor further says that there is nothing inherently good about being a young company or bad about being a middle-aged company as long as they act their age and recognise that aging is coming for you. The young companies have to be ready for their ‘bar mitzvah moment’ and have to be willing to grow up.
On family groups , young companies and middle aged companies Aswath Damodaran: Many Indian companies are part of family groups and family groups are collections of individuals, some young, some old, some middle-aged. Let us take the Reliance Group. The Reliance Group has some middle-aged companies.
Remember, middle-age is not bad. You can be very wealthy. Petrochemicals is the middle-aged company that throws off the cash flows.
But within the Reliance Group, we have Reliance Jio, which is a much younger, high-growth entity, which is actually a cash flow burning enterprise. But you are okay .
