PSU banks and housing finance companies good for long and short term investment: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities shares his views on the the banking, NBFC and housing finance space.

ET Now: Do you see any stock with the potential to give a quick 5-15% return over the course of the next 5 to 10 sessions?

Neeraj Deewan: PSU banks can continue to do well. They can still give some returns from current levels.

Generally, financials as a whole (including NBFCs, Housing Finance Companies) is the sector which people are still positioning themselves in and buying into them before the election.

Financials is another sector where you can still get positive momentum.

ET Now: What within the PSU banks would you recommend?

Neeraj Deewan: In the large caps, we are bullish on Bank of Baroda and PNB, and Oriental Bank of Commerce from the smaller ones.

PNB is among our coverage even after the run-up. It is trading at only 0.8-0.85 times next year adjusted book value. Oriental Bank of Commence is trading at 0.55 times. These two have lot of scope even with the fundamental one-year perspective. You can get some return in the short term also.

Besides this, one can go for housing finance companies because of the banking license news.

Housing finance companies like LIC Housing and GIC Housing which among our coverage, their loan growth is happening at 19-20%. This growth is happening even in the last three quarters of this financial year.

LIC Housing would be still trading at about 1.7-1.8 times book value that still looks interesting. Even GIC Housing will be trading at less than book value at 0.7-0.8 times.

These are some stocks which are very good for investment fundamentally as well as can give you some short term upside momentum too.