Buy GRUH Finance, Bajaj Finance, M&M Financial: Jain

Nitin Jain, Edelweiss Securities is of the view that one can buy Gruh Finance, Bajaj Finance and M&M Financial Services.

Jain told CNBC-TV18, “We like retail Non-Banking Financial Banking Companies (NBFCs) a lot. There is a huge opportunity there. Most of these companies are giving Return on equities (ROEs) in excess of 20-25 percent. We don’t see any slowdown in demand pick up at least for the next three-four years. Hence it is a huge opportunity.” 
He further added, “We like a lot of these NBFCs particularly a Gruh Finance or Bajaj Finance, even Mahindra Financial Services. L&T Finance Holdings is an excellent company but the stock has run up too much. Probably market expectation in terms of may be a banking license or something like that. The stock might be trading at 3.5-4 times book which for the standalone business definitely looks expensive except for a catalyst like getting a banking license then the stock might get rerated. If I have to pick stocks in that space I would be more keen on stocks like GRUH Finance, Bajaj Finance and Mahindra & Mahindra Financial Services.”