Anil Singhvi finds NBFCs, HFCs attractive now; few NBFC stocks can double in 2-3 years

After the apex banker Reserve Bank of India (RBI) in a positive surprise move lowered the repo rate cut by 0.5 per cent, Indian equities rallied significant with the Nifty rallying 250 points and Bank Nifty jumping by 800 points and scaling past its previous all-time high in intraday trade. So, as India’s macro seem to be highly robust with only valuations being a concern, Zee Business Managing Editor Anil Singhvi believes NBFC space is the best to currenty put in investors money.

Why Anil Singhvi finds NBFC as the best sector?

Anil Singhvi believes that after the RBI has cut repo rate by a sharp 50 basis points – NBFC or non-banking financial institutions will be able to secure loan at a much lower rate. 

Additionally, with a cut of 1 per cent or 100 basis points, liquidity crisis in the system will be taken care of and growth of credit is likely to be spurred at a good rate.

Besides, Singhvi finds valuations of a select set of NBFC stocks to be highly attractive. Also, importantly, RBI is slowly and gradually removing and relaxing the different regulationary curbs for these NBFCs.

The expert added that some of the companies in the NBFC space are available at a price to book value of less than 1, others at a price to book value of less than 2 and likewise.

Which NBFCs are good for investment?

– IIFL Finance
– AB Capital
– L&T Finance
– Piramal Enterprises 
– SG Finserv
– Northern Arc

Housing companies which present opportunity for buying 

– PNB Housing
– LIC Housing
– Adhar Housing
– Repco Home