“Bajaj finance was worth buying even when we started off on a soft note in the market,” said market expert Prakash Diwan in an interview to CNBC-TV18.
“However, given the kind of valuations and froth that could easily we could graduate to, I would believe sticking to the leaders would make sense because if there is a cascade into a slowdown again, you would have a much bigger loss erosion in the smaller NBFCs because they are still vulnerable,” he added.
According to him, Bajaj and all have a model which helps them get bigger market share when things get difficult for other players in the industry.
“Therefore, I would stick to the larger players while Mahindra & Mahindra Financial Services or Cholamandalam Investment and Finance Company do look promising at this moment, but it’s more momentum rather than anything on the long-term,” Diwan further added.
For entire interview, watch video
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