Parag Thakkar positive on Cholamandalam Investment

Parag Thakkar of HDFC Securities told CNBC-TV18, "We have been continuously recommending Cholamandalam Investment and Finance Company since long and we continue to remain very positive. So any non-banking finance company (NBFC) where they buy on a floating basis and lend on a fixed basis like Chola Finance or like Shriram Transport Finance, Sundaram Finance, Mahindra & Mahindra Financial Services, even some part of the portfolio of L&T Finance Holdings would figure in that."

He further said, "In some of these companies there are some challenges on the ground in terms of rural lending, in terms of unseasonal rains which will have its impact in April-May. Cholamandalam Finance, Shriram Transport and Sundaram Finance are in a sweet spot. On one hand there is a commercial vehicle (CV) cycle revival going on and so volumes are going to go up, credit growth is going to pick up, asset quality is going to be stable now and on the other hand you have raw materials."