Growth to be subdued for the next three quarters for M&M Financials: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, VP-Institution, Angel Broking, shares his views on the M&M Financials. Excerpts:

ET Now: Come in on M&M Financials. It has been dog of a stock. Markets are sitting at a record high but M&M Financials is nowhere close to its 52-week high. Do you think is it a good time to still buy into Mahindra & Mahindra Finance?

Mayuresh Joshi: Clearly, couple of factors for Mahindra & Mahindra Finance are important. One, the results were not that encouraging if you look at the kind of asset quality deterioration we saw in the results gone by, that is not an encouraging sign and secondly with the kind of growth that it expects. The growth will be a little bit subdued at least for the next two to three quarters. Again, M&M where it primarily supplies a lot of loans and advances to its commercial vehicles and the other aspects of this business again is seeing a little bit of a slowdown. So in that sense itself if one needs to really play the NBFC space, we are still liking LIC Housing Finance, we are still liking Indiabulls Housing Finance where we believe there is a lot of potential both in terms of earnings and the quality of earnings that these companies have been posting. So LIC and Indiabulls still remain our preferred picks specifically from the NBFC space.