Phani Sekhar, fund manager at Angel Broking told CNBC-TV18, “Over the longer term, if a banking license pans out then I guess over the longer term it helps in the growth of the business of L&T Finance Holdings.”
He further added, “If you look at worst case scenario for the stock in the sense that the banking license does not come through, even then their non-bank financial companies (NBFC) pie and their reach as of today will help them to maintain advances growth of 18-20 percent for the full foreseeable future that is over the next three-five years.”
“Any ways, banking license even if it comes will only fructify in the form of a bank over the next not less than two years. So I think over the next two-three years as the business is poised to grow by at least 20 percent in advances terms and the valuations are fair. It’s a good stock to hold on for that period of time. We can expect an upside of at least 50 percent from these levels over the next 1-1.5 years,” Sekhar said.
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