Daljeet S Kohli, Head of Research at Indianivesh Securities told CNBC-TV18, "We don’t take a call on whether somebody will get some license or not because we are not privy to that information. What we are banking is on that Capital First has an asset management growth of more than 50 percent. Last four years, they have shown very good growth, they are continuously showing that kind of numbers quarter-on-quarter (Q-o-Q), they are beating the expectations, their own guidance and that too not at the cost of quality of the asset. So non-performing assets (NPA) numbers, gross NPAs, net NPAs are very minimal. Just as what Bajaj Finance is doing, they are also doing in the similar fashion."
"We had started the coverage on this stock at Rs 200, now it is around Rs 340-350. As of now we have given a target of Rs 400 but again as the numbers will keep on coming, this target will keep on revising upwards," he added.
Disclosure: Analyst holds Pennar Industries.
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