Deepak Jasani, head of retail research at HDFC Securities, spoke to CNBC-TV18 about the non-banking financial companies (NBFCs) and why he is positive on LIC Housing Finance.
With regards to the NBFCs, he said, "One will have to be stock specific in this space and be cognizant of corporate governance levels of the companies one is betting on."
"Currently, a lot of the NBFCs are seeing an upward bounce because they were highly oversold but one has to be cautious while getting into them as an investment bet," said Jasani.
Sharing his rationale for picking LIC Housing Finance, he said, “It is more than 30 year old company and more than 40 percent is owned by LIC of India. They have 249 marketing offices with an asset book of Rs 1,76,000 crore. Moreover, the current valuations are cheap and so it is a risk worth taking.”
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First Published: IST