Prefer Satin Creditcare Network: Rajesh Kothari

Rajesh Kothari, Managing Director at AlfAccurate Advisors told CNBC-TV18, "We have been holding Satin Creditcare Network from last few months, disclaimer, we are holding for our PMS clients and we still like the company because the entire space which is going to grow probably about 35-40 percent in terms of net interest income (NII) growth and 40-50 percent in terms of profit growth compounding over next two-three years and if we have an return on equity (RoE) of 15 percent plus then the stock becomes a reasonably attractive opportunity.""Of course, on valuation basis, the stock probably right now is trading at around 2.2 price to existed book value on FY'18 basis. So, the stock is not yet that expensive, despite the very high growth. This is one of the probably only Micro Finance Institution (MFI) which has decided not to become right now the payment bank, small finance bank because if you become a bank for the next 2-3 years, your earnings growth is going to be muted because there are going to be a lot of expenditure," he said."Probably this is another MFI which is highest promoter holding within the MFI space. So, these two factors combined gives further comfort to us. Hence we continue to own it for our portfolio clients."