Tourism Finance Corp may move to Rs 85-90: Ambareesh Baliga

Ambareesh Baliga, Market Expert told CNBC-TV18, "Tourism Finance Corp of India has paused back a bit from the slightly lower levels. However, again there is a lot of focus on tourism. We have seen the hospitality sector bouncing back to a certain extent, occupancy levels improving. This actually services the tourism and hospitality sector. Nearly 90 percent of the exposure is towards that and despite the sort of uncertainties which we saw in last 3-4 years we have still seen a 14 percent sort of CAGR growth in the loan portfolio.""As per the draft policy, about 1 percent of GDP by 2020 should be from this sector, tourism sector and expected to be about 2 percent from 2025. At the same time the status for hotel projects which was, it has been given the industry stature, earlier it was only about Rs 200 crore projects. Now they have brought down to about Rs 20 crore. So, that is also very positive," he added."Now with this e-Visa and Make in India tourism should get a booster. We have seen that even the spreads have been decently high for this company; it has been about 4.5 percent what we saw in FY15. Looking at expected performance in FY17 in fact I am looking at earning per share (EPS) of about 9.5. Looking at that it is quoting at about 6.5 times FY17. Price to book is about 0.8. So, from here the downside is very limited. We could possibly see levels of about Rs 85-90 possibly in the next six to eight months," he said.