DHFL looks promising: Prakash Diwan

In a chat with ET Now, Prakash Diwan of Altamount Capital, shares his views on financials.

ET Now: What is your view on financials? Is there any housing finance company or brokerage which looks comfortable from the valuation perspective?

Prakash Diwan: I am not sure. Every time, I look at valuations, I write off Gruh Finance. But, it bounces back.

Disclaimer: I also have positions in the stock, but the space itself is getting re-rated.

DHFL still holds a lot of value. There is a lot of appetite for the stock. I would have said the same thing for Indiabulls Housing, a week back. But the kind of move DHFL has had, it is probably in the same stage. We believe all of it's acquisitions will start adding to the operating leverage.

So, parts for their businesses big and small, premium and non-premium segments will be phenomenal now.

They need to just consolidate. For this, they would require two quarters. Meanwhile, as affordable housing has become a reality, there are more choices they can make in terms of not just lending to individual investors, but also funding to construction activities. So, you need to look at that book. But DHFL has been out of the entire GIC, CanFin, LIC Housing Finance because some of these financials are distinctly overvalued.

Gruh Finance is good, but if you have got into it, then stay invested. You cannot buy into it with that same gusto..