Accumulate Aditya Birla Nuvo, Bajaj Finserv: Rajen Shah

One can accumulate Aditya Birla Nuvo, Bajaj Finserv, says Rajen Shah, CIO Angel Broking.

Shah told CNBC-TV18, "I am not a fan of either Manappuram Finance or SKS Microfinance but there are two  companies in the NBFC space, which I like and which look very promising from a longer timeframe is Aditya Birla Nuvo,  which has this Aditya Birla Financial Services where we expect something on the banking front also to happen.”
He further added, “The stock has also come down from about Rs 1,175 levels to about Rs 975. So it has corrected  almost about 15-20 percent. It is quoting at about 10 times the next year earnings. At the same time, the promoters  have just about a few days back taken up almost 67 lakh shares at a price of Rs 910.”
“So, the promoters are putting in about Rs 550 crore and raising their stake from 49 percent to 54 percent certainly this  stock looks very interesting. Five years back the stock was quoting at Rs 2,000 and today it is quoting at 50 percent  below that price and in these five years, the company’s net profit has gone up 300 percent. So, this stock looks very  interesting.”
The second stock, which I like in the NBFC space, is Bajaj Finserv. The stock has corrected almost 22 percent from  Rs 979 to current levels of about Rs 769 or so. Insurance we believe should do extremely well in the coming years.  They own 74 percent stake in Bajaj Alliance General and Bajaj Alliance Life and they also have a stake of about 60-62  percent in Bajaj Finance probably which may go in for banking license and it is trading at just about ten times next year  earnings. So, these two stocks look very promising. Good management, good valuation and good prospect, so,  certainly stocks are worth accumulating.”