Positive on insurance businesses, look at M&M Finance & Bajaj Finserv: Prateek Agarwal

In a chat with ET Now, Prateek Agarwal, CIO, ASK Investment Manager shares his view on NBFCs and the financing business overall. Excerpts:

ET Now: You mentioned that you like NBFC. So what exactly do you like do you like from the NBFC group?

Prateek Agarwal: At this point in time we are not really looking at infrastructure plays, but we are looking at tractor financials and small ticket financials. So our portfolios today would have a M&M Finance and Bajaj Finserv which has Bajaj Finance.

The other apart from the financing businesses we are positive insurance businesses. If you look at the valuation of insurance businesses in the listed entities, you would find that if you do a sum of the parts, the insurance businesses are available at significantly lower than the embedded value, which is currently in the business already. So that is a cheap part of the market and potentially a high growth one and of a very high quality and a very regulated one. So we have kept our faith in that space.