Manishi Raychaudhuri of BNP Paribas Securities on Saturday told, "With regards to NBFCs, the kind of companies which can increase the penetration into both rural and semi-urban areas and therefore can continue to grow at significantly higher than the sector average rates, those are the ones that would be the winners in the medium term."
He further added, "the companies that pay adequate attention to their cost of funds and also their asset quality, those are the kind of companies that investors should be willing to side with. There are quite a few companies which fit these descriptions. So, ultimately what boils down to is the relative valuation between them."
"Valuations have increased quite a lot. Even the good quality companies are not trading cheaply at all. There are opportunities in this sector but investors would have to be very selective, " said.
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