Dipan Mehta, Director at Elixir Equities believes non-banking financial companies (NBFCs) have a great way forward considering that a lot of consolidation has taken place in the entire banking sector.

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“Overall credit is picking up. Automobile and housing have picked up and provide a lot of opportunities for the NBFCs. I am quite positive on the NBFCs space and depending on the numbers for this quarter, we would be looking at buying into some of the interesting NBFCs especially gold finance, microfinance or consumer finance,” he told CNBC-TV18.

On Reliance Industries Ltd (RIL), he said, “Many things going positive for RIL, the stock has underperformed largely because the rest of the market has done pretty well providing many opportunities. If we have a good number and positive commentary from the management, we could certainly have the stock start to perform in-line with the Sensex and Nifty.”

RIL is a long-term play, Mehta said.

“RIL may not be such a great trading play and one needs to be a bit more patient, have a three-five year type of view on RIL.”

Mehta also said though he is invested in Larsen and Toubro Financial Services, this company doesn’t seem to be that attractive at this point in time.

“There are better bets in the NBFCs space which perhaps have higher growth rates,” he said.

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(Edited by : Ajay Vaishnav)

First Published:Jan 19, 2021 11:02 AM IST