Market Volatility Restores Valuation Discipline, Says DRChoksey Finserv’s Deven Choksey

Heightened market volatility has triggered a broad correction in equity valuations, with several stocks retreating from the steep premiums they commanded just months ago. However, according to Deven Choksey, Managing Director at DRChoksey Finserv, this phase of consolidation is helping restore rational pricing and opening selective investment opportunities for medium-term investors.

He believes the recent correction is gradually bringing valuations back in line with fundamentals, creating room for disciplined portfolio accumulation in high-quality names.

Bajaj Housing Finance Trades Near Realistic Valuations​

Bajaj Housing Finance has emerged as one of the key stocks Choksey is tracking closely. He noted that the stock has fallen significantly from earlier levels and is now trading closer to a realistic price-to-book ratio.

Choksey emphasized that the company continues to demonstrate strong growth, and at current levels, downside risks appear limited. While he cautioned that returns may not be immediate, he sees meaningful upside potential over a two to three-year horizon.

From a medium-term investment perspective, he believes such stocks now offer reasonable entry points after the valuation reset.

Tata Technologies Near IPO Levels After Sharp Correction​

Tata Technologies is another name highlighted by Choksey. After listing and climbing to the ₹1,400 to ₹1,500 range, the stock has corrected sharply and is now trading close to its IPO price.

Choksey pointed to the company’s competitive strengths and indicated that current levels may offer an opportunity for gradual portfolio addition. In his view, the steep correction has improved the risk-reward balance for long-term investors.

Metals Sector Remains Structurally Strong​

Choksey continues to maintain a positive stance on the metals space, including companies such as Vedanta.

He stated that white metal commodities remain fundamentally strong, supported by sustained demand trends. He also highlighted a structural shift underway within the sector, as several metal producers increase their renewable energy capacity.

Lower power costs from renewable integration are expected to strengthen margins and improve balance sheet health over time. In certain cases, additional triggers such as demerger-related value unlocking may further support shareholder value creation.

Given these factors, Choksey believes staying invested in quality metal names continues to make sense.

Positive View on CleanMax Energy’s Business Model​

Among renewable energy-focused businesses, Choksey expressed a favorable view on CleanMax Energy. He confirmed a “subscribe” stance on the company and described its business model as structurally attractive.

While refraining from detailed commentary on valuations, he indicated confidence in the long-term prospects of the platform.

Medium-Term Opportunities Emerging Amid Correction​

As volatility reshapes the equity landscape, Choksey’s assessment suggests that the recent market correction is not merely a pullback but a recalibration of valuations. For investors with a two to three-year horizon, selective accumulation of quality stocks trading closer to intrinsic value may offer compelling opportunities.

Markets may remain volatile in the near term, but from a medium-term perspective, the current environment appears to be gradually restoring rationality to pricing across sectors.