Rahul Arora, CEO at Nirmal Bang Institutional Equities told CNBC-TV18, "There is a lot of institutional investor interest in stocks like Repco Home Finance and LIC Housing Finance when we speak to our clients. The only one in the non-banking space that we track is SKS Microfinance and it is in links into what Modi is trying to do because the average ticket size for people who are taking the loans at that level is about Rs 10,000-15,000."
"SKS Micro Finance is a great company to be holding, it has got about 4.5 percent RoA and 25 percent RoE. My own analyst thinks that the earnings could compound by about 40 percent in the next two years as well as the assets under management could grow by about 40 percent. So, this could be an indirect beneficiary in a way of what it is trying to do but that is one stock that we like. We have recently initiated a buy call on the stock and have a price target of close to about Rs 600 on it," he said.
Disclosure: Analyst has no personal holdings, most of these stocks are recommended to his clients.
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