IDFC looks attractive, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Jindal Steel & Power (JSPL), IDFC and Punjab National bank (PNB) have got beaten down for reasons which were attributed to both the macro conditions as well as the performance of the company on a standalone basis. So JSPL typically got affected because of coal mining issues, because of fuel supply and few other corporate issues that were surrounding the company."

He further added, "For IDFC it was more to do with the kind of NPA rises that we saw. Traditionally the kind of AUM built-up that the stock has and the kind of business environment function it is very obvious that the margin compression was going to be seen on the stock performance."

"Similarly PNB and generally the PSU stocks we have seen the asset quality deteriorate over a period of time, structurally the asset pipeline both in terms of restructured assets and the bad assets have obviously increased into the banking system causing a stress on their NPA books. Again the provisioning which was imposed by RBI will be a cause of concern for their treasury books going forward in Q3, Q4 and the kind of provisioning that one has to make," Joshi said.

He further said, "One has to be a little stock specific when you are talking of ranked underperformers going forward. It is still a little bit of a benign environment in terms of the macro economics. But once they improve I think you might have a few stocks within the PSU space which can do well. IDFC again on a valuation perspective is looking attractive and the banking license is something which can be a trigger for the stock going forward. So you have to be specific when it comes to the PSU banking space or the NBFC space."