172@29@17@138!~!172@29@0@53!~!|news|business|stocks|bajaj-fin-hdfcsatin-creditour-top-picks-iifl-917581.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Dec 08, 2016 11:51 AM IST | Source: CNBC-TV18

Bajaj Fin, HDFC & Satin Credit are our top picks: IIFL

In an interview to CNBC-TV18's Latha Venkatesh, Sonia Shenoy and Anuj Singhal, Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs of IIFL shared his reading and outlook on the market and also gave recommendations on various stocks.

In an interview to CNBC-TV18's Latha Venkatesh, Sonia Shenoy and Anuj Singhal, Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs of IIFL shared his reading and outlook on the market and also gave recommendations on various stocks.

Below is the verbatim transcript of Sanjiv Bhasin's interview to Latha Venkatesh, Sonia Shenoy and Anuj Singhal on CNBC-TV18.

Sonia: How do you approach a stock like Crompton Greaves now after the newsflow that they terminated that deal with Pauwels Spaco Ltd and also the earnings have not been very impressive?

A: Disappointing, this has been one leg, after that divestment of merging the other arm on the consumption side, this is where the real problem lies, the power division. Despite euro doing fine, they are unable to go ahead with that sell off which leads to almost Rs 200 crore of losses on the balance sheet.

So it is a sell on rallies for this stock, it is a total exit. If you want to be in that side of the business, you would rather be on the consumption electrical side which is stocks like Havells or Voltas. For us, this side of the division is totally a sell. So look for rallies, the stock has corrected already in anticipation of the news. We think that any rally or any rise in the stock would be an opportunity to exit. We don’t want to be in sectors or stocks where the leverage is still high and where there is paucity of visibility going forward.

Latha: Do you have a price at all for the stock or you just have a sell recommendation?

A: We thought that 75 was the top for this stock. Now it is closing close to Rs 65, because of over-ownership by some of the foreign institutional investor (FII) even touch levels of Rs 55. So it is a sell on any rallies. The marketcap is about close to Rs 4,000 crore. You could see that getting hurt by at least 10 percent downside further.

Anuj: Your thoughts on NBFCs?

A: Bajaj Finance is our top pick. We think it will withhold through this storm and it will emerge as a winner. We have a target of Rs 1,000 by the next six months.

Second would be Satin Credit Care, a microfinance company where the management has guided that the cash crunch is not affecting the business at all.

Third would be HDFC -- the mortgage lender -- which we think will weather these storms much better than the entire sector. So in that order, Bajaj Finance, HDFC and Satin Credit Care would be our top picks.

For full interview, watch accompanying video....

First Published on Dec 8, 2016 11:18 am
Sections