On financials
There could be a lot of up moves in the financial stocks and there is deep value in a few corporate banks like ICICI Bank and SBI. We have seen a decent upside in near terms and I think this rally in financials that we have seen in the last seven to eight trading sessions should continue. The valuations are still so compelling that you cannot go wrong with SBI with less than one time book with scope for a lot of subsidiary valuations unlocking.
On privatisation of PSU banks & takeover of ailing pvt banks
The government has been trying its best to do it as we saw in case of YES Bank. The government infused funds through various banks and did not allow it to fail. Also, smaller PSU banks have been merged and now the government might consider privatising a few of them. In the listed space, after the top three or four plays, there could be some game changers in terms of the government looking out for some private players to get infused into. It should be a welcome move and a good step for the financial sector as a whole.
On gold financiers
Rahul Shah: I still think the gold financing companies are going to benefit. This is going to be the most liquid asset, where rural Indians can just go and take the funding. We saw good growth and performance in the two NBFCs -- Mannapuram as well as Muthoot. Both the companies have superior return ratios and superior quality of management but Muthoot may benefit more.
The stocks have done quite well and maybe other stocks are catching up but there some more upside is likely in both Muthoot and Mannapuram. My top bets in gold financing companies will be Muthoot from current levels. There could be another 20% upside easily from here and then one can look at the Federal Bank. This stock has underperformed big time vis-à-vis other banks and there could be some very good opportunities for investors to play it both for its gold loan bit as well as the overall core book of the bank. I would bet on these two stocks.
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Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price