From pizzas to personal care: Where Pankaj Murarka sees the next wave of growth

India may be the most expensive equity market globally right now, but that hasn’t stopped fund manager Pankaj Murarka from spotting areas where earnings growth could outpace broader market expectations.

The CEO and CIO of Renaissance Investment Managers, which manages over ₹1,300 crore in assets, says he’s looking beyond near-term volatility and focusing on companies with long-term growth potential and strategic resets already underway.

“Returns from here will track earnings growth,” Murarka told CNBC-TV18, pointing out that while Nifty 50 earnings grew just 5% in FY25—one of the slowest in recent years—some segments are poised for a stronger comeback. He’s particularly upbeat about three areas: private sector banks, IT services, and consumption.

Also Read: Manulife Investment sees overseas flows returning to India

In the consumer space, Murarka is betting on a rebound after nearly three years of subdued performance. Among his top picks is Jubilant FoodWorks, where he sees significant headroom for growth in the organised pizza market. “There are only around 10 million (one crore) pizza consumers in India through organised chains, compared to 50 million (five crore) people trading in stock markets,” he said. The company’s strategy to offer more value-based products has already led to strong volume growth over the past three quarters, he added.

Murarka also sees promise in the staples and durables categories. He likes V-Guard and Crompton in the consumer durables space, and Tata Consumer and Godrej Consumer in staples. These companies, he says, are taking meaningful steps to expand their product portfolios and penetrate deeper into existing markets—moves that could help them grow faster than the industry average over the medium term.

Also Read: Good macro, patchy earnings: Axis MF’s Devalkar on his strategy

The consumption story, in his view, could get further support from income tax cuts, a recovery in rural demand, and favourable monsoon conditions—all of which could improve second-half spending.

While the broader market may look fully priced, Murarka believes bottom-up stock picking in high-growth pockets remains the key to generating returns in a maturing cycle.