Bullish on HFCs, will take a call on NBFCs after elections: Vaibhav Sanghvi, Ambit Investment
In a chat with ET Now,
Vaibhav Sanghvi,
MD,
Ambit Investment Advisors,
says finds oil and gas PSUs very attractive.
Edited excerpts
Let's talk about the prospects of PSUs. Metals, oil and gas, energy, all these pockets have been flying high and some have reached life highs. Do you have any favourite from this PSUs basket?
Because of a) valuation gap and b) some amount of political interference or perceived political interference, earlier we did not get the intrinsic value of the PSU stocks. Now we can their value because of lesser interference, independent decision-making, better corporate governance. Of course, the valuation gap still remains and we are getting to see a good amount of interest in the whole basket. In terms of sectors, oil and gas stands out because of the consistent reforms which has been happening in both the downstream and the upstream companies. That is a segment which definitely I will look for.
Given the bit of a pullback in the last few days, what pocket within the NBFCs are you guys at Avendus bullish on? Is it housing finance, is it brokerages, is it pure play NBFCs -- what do you like here?
At Avendus, we like the typical NBFC model barring microfinance. In addition to that, housing finance is something which we are bullish on. Given the focus of the government on the affordable housing and various incentives in the housing sector, this is a segment which one should not miss out on. At the same time, in terms of microfinance, let the election and demonetisation process get completely over, then we will take a call. At the same time, housing finance companies are something which we are bullish on.
Pharma seems to be a story that most people will not touch. Have you guys looked at Glenmark or a Natco or something else here that you like?
We have definitely looked at them and we have always believed that pharma is a very good bottom up story or bottom up sector rather than getting on the top down basis because we do not know how USFDA gets on to each of those companies and 483 are issues.
We would rather go up each and every individual company in this and in this sector as you rightly mentioned these couple of two stocks definitely are the ones which can probably stand out going forward.
At the same time what we also need to understand is that the valuations are not very undemanding or probably are not very rich. If there is some amount of visibility in terms of the launches in US and things get sorted out on the FDA front, then these are the stocks to look forward to definitely considering that the valuations are pretty much in line and lesser than average.
Edited excerpts
Let's talk about the prospects of PSUs. Metals, oil and gas, energy, all these pockets have been flying high and some have reached life highs. Do you have any favourite from this PSUs basket?
Because of a) valuation gap and b) some amount of political interference or perceived political interference, earlier we did not get the intrinsic value of the PSU stocks. Now we can their value because of lesser interference, independent decision-making, better corporate governance. Of course, the valuation gap still remains and we are getting to see a good amount of interest in the whole basket. In terms of sectors, oil and gas stands out because of the consistent reforms which has been happening in both the downstream and the upstream companies. That is a segment which definitely I will look for.
Given the bit of a pullback in the last few days, what pocket within the NBFCs are you guys at Avendus bullish on? Is it housing finance, is it brokerages, is it pure play NBFCs -- what do you like here?
At Avendus, we like the typical NBFC model barring microfinance. In addition to that, housing finance is something which we are bullish on. Given the focus of the government on the affordable housing and various incentives in the housing sector, this is a segment which one should not miss out on. At the same time, in terms of microfinance, let the election and demonetisation process get completely over, then we will take a call. At the same time, housing finance companies are something which we are bullish on.
Pharma seems to be a story that most people will not touch. Have you guys looked at Glenmark or a Natco or something else here that you like?
We have definitely looked at them and we have always believed that pharma is a very good bottom up story or bottom up sector rather than getting on the top down basis because we do not know how USFDA gets on to each of those companies and 483 are issues.
We would rather go up each and every individual company in this and in this sector as you rightly mentioned these couple of two stocks definitely are the ones which can probably stand out going forward.
At the same time what we also need to understand is that the valuations are not very undemanding or probably are not very rich. If there is some amount of visibility in terms of the launches in US and things get sorted out on the FDA front, then these are the stocks to look forward to definitely considering that the valuations are pretty much in line and lesser than average.
