Confident on Maruti Suzuki; like Bajaj Finance: Deven Choksey

In an interview to Latha Venkatesh & Anuj Singhal on CNBC-TV18, Deven Choksey of KRChoksey Investment Managers feels that Maruti Suzuki is slightly rich valued right now, so maybe one can consider buying it at lower levels when it gives an opportunity during the corrective times.Maruti SuzukiIt is basically a very smart strategy which Maruti Suzuki has adopted and brought in new models. That is driving a larger amount of growth for the company. I would remain confident about it because the way in which the product launches are taking place, they are cannibalising their own set of old products and probably bringing in the new products in turn, giving a hard time to the competitors in respective categories of the products that they have in the car business."Certainly, Maruti remains on a better note. Maybe the market has moved up also because of a larger amount of allocation of money happening into the frontline stocks. If in some point of time, some cooling down takes place in the market, maybe there could be a time to once again relook at this stock. Given the fact that it is slightly rich valued right now, so maybe consider buying it at lower levels when it gives an opportunity during the corrective times.Bajaj FinanceWe continue to like Bajaj Finance and Capital First. Both these companies have a good amount of focus on the retail side. At the same time, what we like most about them is that they choose their customers in a systematic manner whereas, in the rest of the places, you do not get a similar kind of a comfort. They have got a very strong data analytics with them wherein they have the ability to pick up their customers and in turn, they make the maximum out of it. Bajaj Finance very systematically adopted some pricing model into their lending activity which is giving a larger amount of confidence that going forward when the pressure comes in onto the cost side, probably they would not be as much affected on the margins because of this particular way of working that they have adopted. So, we particularly like these two companies. But both have become extremely expensive for the time being. Maybe some moderation in prices at some point of time would be a good opportunity to once again relook at them. However, we continue to hold them in the portfolio, that is a disclaimer which I would like to put across.Bajaj FinservWe have been liking Bajaj Finserv and largely from the point of view of the insurance business that they are having in the portfolio. If you look at the quarterly results, in the insurance businesses, the general insurance business has started growing at 13-15 percent range now. The life insurance business has already from the degrowth phase, started growing in single digit at this point in time, but they have started growing that well. On the other side, if you look at the company’s combined ratio which is more meaningful to look at the profitability of the company, you find that this company is probably uniquely positioned with the higher amount of profits comparatively. In fact if my numbers go right, without having much of public data available, in the general insurance business, they would be the most profitable company in the country today. I would think this is one business which is holding huge amount of potential. The kind of activity which is happening in the country particularly on the asset creation side with the infrastructure and other activities coming up, I would be believe that the insurance businesses could possibly unfold huge amount of growth opportunity and some of the players early entrance, who have spent time in this business could be really beneficiary and that would include Bajaj Finserv. Certainly would like to believe that insurance could be a bigger theme going forward and one could possibly systematically invest in this particular business for next 3-5 years to get the maximum benefit thereafter.