Dipan Mehta positive on IDFC

Dipan Mehta, Member of BSE and NSE told CNBC-TV18, "Valuations are on the side of IDFC and we have seen some amount of appetite coming back into some of the infrastructure construction companies. If you see stocks like Larsen and Toubro and BHEL have done better in the last couple of months and maybe a contrarian play does exist in IDFC that whenever infrastructure spending, infrastructure sector starts to do well IDFC is going to be one of the major beneficiaries."

He further added, "It is a very well managed company and despite all the problems within the industry they have been able to keep their non-performing assets (NPA) levels very well under control. Ofcourse it is tip to be converted to a bank because it is more or less satisfies all the criteria which RBI has in mind for new private sector banks."

"So, there are a few things going in favour of IDFC and maybe this kind of a priced move at this point certainly seems to be justified given that they have also many subsidiaries which are quite valuable as well. So, I would be positive on the stock and within the banking sector one has to keep track of the private sector banks and NBFC and IDFC certainly falls in that category. So, I would say that this particular move may have some more steam left in it," Mehta said.