Bajaj Finserv is our pick for 2016: Pankaj Pandey

In an interaction with ET Now, Pankaj Pandey, HoR, ICICIdirect.com, said Bajaj Finserv is one of the most efficient players in both life and general insurance. The insurance space looks quite interesting from one year perspective. Excerpts:

ET Now: You may not have an individual view on Tube Investments, but almost every company which had an insurance JV within itself has managed to do wonders with the kind of stake sales and the valuations that they have got, be it Tube Investments over the weekend, be it Reliance Capital, or the ICICI deal. People are fetching a good premium for the insurance businesses. What is your take on that?

Pankaj Pandey: You are right. Following the FDI hike announcement, we have seen news on that front and that is why are positive on stock like Bajaj Finserv, which is our pick for 2016. If you look at for example in general insurance space, while this company is trading at 17 times FY17 basis earnings, the general insurance business, the deals are happening at about 24-25 times, which we believe this company in particular will have a scope for rerating. I think the entire space looks interesting over the next one year period of time. Bajaj Finserv, within the insurance space, is one of the most efficient players in both life and general insurance, and this particular space looks quite interesting from one year perspective.