Market may soon chase safety than value; Bajaj Finance good pick: Pankaj Pandey

In a chat with ET Now, Pankaj Pandey, HoR, ICICIdirect.com, shares the rationale behind his preference for Bajaj Finance.

ET Now: As a house, you have been bullish on Bajaj Finance. What makes you optimistic about the NBFC, given the stock has already rallied quite a bit. It is no longer a cheap stock; it is a well-discovered, well-documented and well-owned idea now.

Pankaj Pandey: Banking space looks over-owned to us. Given the expected benefit we would expect from the Seventh Pay Commission recommendations, we believe this stock is quite well-placed in terms of financing of consumer durables and lifestyle product segments. These are the segment where we have seen a pretty good growth rate. It is true that the stock is quite expensive. But our sense is that, somewhere down the line, the market would chase safety in terms of growth, rather than in terms of value. That is what is being reflecting in number of PSU banks.