Housing finance companies among NBFCs should do well: Ajay Bagga

In a chat with ET Now, Ajay Bagga, Market Expert, shares his views on the NBFCs. Edited Excerpts:

ET Now: Within NBFCs what is the clutch of stocks that you like the most?

Ajay Bagga: Look at when the commercial vehicle cycle is going to turn this year. You can look at financials of that and then housing finance. Housing finance is no brainer.There is a huge growth you are seeing. Managements come out with guidance of 20-25% growth that they are anticipating. In the NBFC segment these two can be looked at.

ET Now: Would you bet on the tried and tested like Gruh Finance etc. which are trading at premium valuations? Or would you go in for the ones which have not moved at all, say GIC or even LIC Housing Finance? The Can Fin Homes etc have not really moved as much as a Gruh Finance or an HDFC have moved?

Ajay Bagga: You can look at either of those sections. Overall housing finance NBFC should do well. The market leaders of course stay at the top. But there are people who are able to lent to affordable segments so look at the distribution strength and even smaller companies can be looked at.