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

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?

 

Surprising that Ujjivan and DHFL are not in the list.

 

Shriram Transport

 

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.

 

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.