MFIs and NBFCs: When (if) to start buying?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by dineshkapoor27, Dec 5, 2016.

  1. dineshkapoor27

    dineshkapoor27 Active Member

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    Hi Everyone,

    I have been tracking NBFCs to enter into once some correction was to be made. I felt 7 times book and 30+ PE was too pricey for them. However, due to FII selling and demonetization, these stocks have corrected sharply. I am focusing on the following:

    1. Bajaj Finance
    2. Shriram Transport
    3. Capital First
    4. Repco/Can Fin Homes
    5. Satin CreditCare
    6. Bharat Financial

    If you had to invest in 2 of NBFCs and 1 MFI, which one would you choose? When is the right time to buy you think?
     
    Srouta Mukherjee likes this.
  2. Manmohan Gupta

    Manmohan Gupta Member

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    Surprising that Ujjivan and DHFL are not in the list.
     
  3. RectangularPaper

    RectangularPaper New Member

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    Shriram Transport
     
  4. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Bajaj Finance is at 6.75 PBV. Very expensive stock. Repco is 3.75x Can Fin Homesis 4.95x. DHFL is 1.48x PBV. I have Bajaj Fin, Repco, CAPF and DHFL. DHFL is cheapest stock with dividend yield of 3.20% and good track record. Looks like good investment.
     
  5. adi16

    adi16 Member

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    I have IBHFL and bought L&T finance after recent correction.

    I really like IBHFL, its a large NBFC and less risky compared to others. Also good dividend yield.
     
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