Saurabh Mukherjea’s Marcellus Investment Managers has fully exited the IT services sector, reallocating its flagship Consistent Compounders Portfolio (CCP) with approximately 25 percent now in healthcare. The portfolio also includes pharma exports, auto ancillaries, power transmission and distribution, and fast-fashion retail. Non-IT manufacturing accounts for around 20 percent of the portfolio, with an increased allocation to two internet businesses.
Mukherjea noted that this repositioning has been gradual over the last 24 to 30 months. He cited structural challenges in the IT sector due to AI’s impact on job creation and urban consumption. Mukherjea expressed confidence in healthcare, driven by rising health insurance awareness and capital inflow into hospital chains. The portfolio consists of 19 stocks, with over 40 percent in the top five, and has shifted to include more “enterprising compounders.”
Recent performance showed weighted-average year-on-year EPS growth of 10 percent in Q1FY26, 14 percent in Q2, and 17 percent in Q3. Mukherjea’s warnings on domestic consumption weakness have been validated by the RBI’s latest Financial Stability Report.
