Prefer LIC, GIC Housing Finance among HFCs: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities, shares his views on NBFC stocks.

ET Now: Among NBFCs, what are your high conviction ideas? While private banks have been a standout trade, we are also seeing are also seeing rally in NBFCs. Post the recent earnings, on what stocks do you still hold conviction?

Neeraj Deewan: There are certain NBFCs which are under over coverage. Among them, Bajaj Finance has been one which is under over coverage since it was ruling at Rs 1,300 levels. We still keep holding on it because we feel that the performance will continue. There will be further scope of improvement there. So that is one where we will be holding on to. In the housing finance companies, LIC Housing Finance and GIC Housing Finance are two which are on the top of that our list.

We also like Shriram City Union and Cholamandalam Investment. These are also two NBFCs which have seems to have good future. They are showing some improvement as far as their books are concerned. They have good capital adequacy ratio to grow further as well.