Prefer LIC Housing Finance, says Mayuresh Joshi

Mayuresh Joshi, VP- Institution at Angel Broking told CNBC-TV18, "PC Jeweller - a lot of participants are hoping that any rollback that probably happens in terms of the import duty norms, would benefit jewellery companies in a substantial manner because that reduces the working capital constraints in a substantial way. So the way the working capital debt in terms of short-term borrowings that these companies had to undergo would see significant amount of reduction going forward.”

“However, our take is that if investors are looking at six months to a years time horizon, probably financials would be one place to stick with. Housing finance companies is something that I will suggest with investors for an alternative investment. So something like an LIC Housing Finance, which has boosted a decent set of numbers where we believe that the volume growth can be substantial going forward,” he added.

“I think the topline, bottomline should grow at an exponential pace and with rate cuts probably happening over the next few quarters to the extent of 50-75 bps in our opinion should have a significant amount of bearing in terms of this structural wholesale borrowing casts. So in terms of valuation at around 2.4 times price to book, we believe that the story is intact for LIC Housing. So LIC Housing is one story where the investors can also look at from a six months to a year’s time horizon,” he said.