Look at Reliance Capital, says Porinju Veliyath

Porinju Veliyath, MD & Portfolio Manager, Equity Intelligence India told CNBC-TV18, "We recently bought Reliance Capital in our portfolio management since last two months I want to disclose it first. It is another stock which was not in good sentiment market. Like Anil Ambani Group was not so fancied and not in favour of the stock markets. I think again the group and this company in particular is at an inflection point."He further added, "If you see some of these microfinance companies, some of the NBFCs, the way those companies have moved some of them don’t have that kind of fundamentals to justify the price, but that was a fancy. Considering that now Reliance Capital even after the move which is at around 10 price earnings multiples that looks interesting.""See Reliance whatever said and done it is a huge brand in this country and they have the potential to do business. They are into many verticals general insurance, life insurance, the NBFC activity. Now the housing finance is being separated and they can develop anything related to finance, they can establish that business unlike most of the same much better than most other people in the market, because Reliance is a big brand and the group is coming out of its problems leverages kind of issues today.""One focus area for the group they have already talked it in the public domain defence and finance, two of the focussed areas for the group going forward. Taking that into consideration today’s market cap is around Rs 14,000 crore which is equivalent to its book value, the net worth of the company I find this is one company ignored as a finance company and I like it at this point of time," he said.