AlfAccurate Advisors on Friday said that house remained positive on auto ancillary, speciality chemicals and consumer space.
In an interview to CNBC-TV18, Rajesh Kothari, managing director, said, "On select basis, we have turned positive on healthcare, pharmaceutical names particularly from the month of March onwards, post one or two large companies getting the clearance for Food and Drug Administration (FDA). So, these are the few sectors on which we are fairly positive."
Speaking on non-banking financial companies (NBFCs), Kothari said, "Housing finance is a theme, which we have avoided almost from last two years. We are positive on all other consumer financing or whether it's rural financing names like Mahindra Finance or the commercial vehicle financers, these are the themes on which we are positive. Valuations are already touching high but you also need to keep in mind the earnings growth and the asset quality of these NBFCs."
"One of the large NBFC, which has been recording all time high every day has reported 55 percent compounded earnings growth in last eight years and the market capitalisation has also reported 56 percent compounded market capitalisation growth in last eight years. So, market capitalisation growth and earnings growth are inline. We are very conscious about earnings growth with the asset quality. So, all the names which I have been mentioning, which we have been holding for our PMS clients are the companies where the asset quality is under tight control, very superior asset quality, very superior return on net worth, high RoA and importantly high earnings growth," he added.
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