Yeah Manappuram, Axis and Indus looks compelling to invest in Finance category. Even HDFC Bank and Kotak Bank which have historically managed NPAs well are available at reasonable valuations. I have taken small positions in all of them (except Manappuram, was tracking it at 110-115 to buy, but missed buying it and couldnt make up mind to buy it at 120 seeing it at 110 once!!)
The only issue here is a. I am already overweight on financials, still have half the PFC, b.) Will NPAs start climbing? Loan growth was high, interest rates are high now, perfect receipe for NPAs, but we are not seeing any stress yet.
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