Kotak, Edelweiss best bet among brokerage companies: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Principal & Head-Private Client Group Business, Nirmal Bang Securities, shares his views on brokerage companies. Excerpts:

ET Now: Is the brokerage business something that you like because Edelweiss has done reasonably okay. We saw JM Financial doing well for other reasons as well. But Motilal Oswal is pure market broking and maybe some bit of PMS as well. Do you like the brokerage business now that the market tide is turning and would their investment candidates be there?

Mehraboon Irani: We have reasons to be very hopeful that business environment should improve because we belong to possibly the majority of crowd who believes that we are in for a major bull market unfolding over the next many years. My personal view was that next three-four months investors will lose the patience. But if you are asking me on the brokerage sector, Edelweiss virtually stands out I would say. But for investors, I do not like to buy into pure brokerage companies. Kotak would be the best proxy. We like Kotak mainly because of its exposure to various segment which includes a brokerage industry. So Kotak could be the best bet. Edelweiss if somebody is looking at a pure brokerage company, I would use the word Edelweiss also virtually stands out and provide as a decent buying opportunity.