In an interview to CNBC-TV18 SP Tulsian of sptulsian.com talks about home finance companies, PNB Housing IPO and couple of other companies like Adani Ports and Mastek.
Below is the verbatim transcript of SP Tulsian's interview to Latha Venkatesh and Sonia Shenoy on CNBC-TV18.
Sonia: Of all the home finance companies even DHFL did extremely well. What would be your pick of the pack in the home finance business?
A: Difficult to set the pecking order, but if you really take a call probably I will go with all the housing finance company and if you see I really agree maybe DHFL which has posted the result is available at the least valuation maybe at a PE multiple of 10, but if you see the Can Fin Homes the consistent profit growth which the company has been showing when you compare it with any other NBFC, you find that Bajaj Finance and Can Fin Homes have the same pattern of the growth showing, the growth visibility which we have been seeing in case of both, so may be in terms of the growth perspective Can Fin Homes look really very good.
On the valuation parameter DHFL looks very good, but I think LIC Housing also qualifies a very good investment, but if you take a little broader view maybe on the other housing finance companies all are now moving into all the verticals, whether you talk of housing finance, consumer finance even this microfinance companies, so the whole space is looking very good. I don’t think you can really generalise unless until you see all the results which have posted the best number. Can Fin has been posting the highest growth in the housing finance companies on the relative basis.
Latha: Have you taken a look at the details of the PNB Housing IPO. Obviously, they are trying to cash in on this NBFC and housing finance boom, are they becoming too ambitious?
A: I have not yet gone through, because the analyst have gone and attended the conference today, so maybe the RHP and the note by the analyst will come to for joint discussion amongst us. So I have not yet gone through but again because as I have said that housing finance is really seen to be a very good play going forward along with the NBFC on which we have been keeping a positive view, so we will analyse then because everything depends on issue price for any IPO. You can’t say that any IPO in fact whatever IPOs we have seen none of them were bad. It is only the pricing which has been seen to be quite bad, so I won’t say that the company is not good, but ultimately the valuation vis-à-vis with the financials has to be taken into consideration which we will analyse maybe next couple of days.
Latha: Do you like Adani Ports?
A: Very much and in fact I have been giving a positive call on the stock when it was ruling closer to Rs 210-220 maybe 4-6 months back. If you really see after its inclusion in Nifty and Sensex which has happened about 6 months it has corrected by about Rs 100 from Rs 300 to Rs 200 and that seen the stock bottoming out and post that the stock has been continuously seen the value buying. In fact, I was very happy with the Q1 numbers so again there was again some kind of disappointment by the market, but in regards to the inter-party transactions once the management has confirmed that they will be setting them right, that has in fact re-rated the stock and I am expecting that maybe Q2 numbers because monsoon remains dull for the port companies, but going forward Q3 and Q4 will really be seen very good, this is a what you call maybe a kind of portfolio stock where you can look for a gain of about maybe 15 percent in next 6 months from here.
Sonia: Wanted your thought on Mastek that was up almost 13 percent post its numbers, but this is a stock which has just eroded wealth for investors over the last 6-12 months, so would you stay away given its history or do you think there is a turnaround that we are witnessing in the stock?
A: I don’t think that you can really conclude from one quarter’s numbers. We have seen that if I just take a call on maybe last 20 quarter numbers or maybe 24 quarter numbers, you may have seen this type of quarters good robust quarter results coming in and as such if you have been taking a negative call on the IT sector per se, there are few ideas maybe in the midcap IT like Trigyn Technologies and Hexaware where we have been keeping a positive stance on a very selective basis, but I won’t be cheering just merely that Q2 numbers from Mastek, but definitely they are looking good. Just on a one quarter results and the kind track record as I have said that out of 24 results if you see majority of them have disappointed, so I won’t be taking a positive call because you have many other ideas in the sector and stocks available.