There are a whole lot of financial services companies which are still trading at enticing valuations, says Sudip Bandyopadhyay, Group Chairman, Inditrade Capital.What is your outlook on BPCL? In today’s trading session, that capital was under pressure as the trust is offloading about 7% post. This thing is being done to facilitate the divestment. As we are all aware of, the Numaligarh transaction closed a few epoches back and that gives the BPCL cash at the rate of about Rs 35 per share. Today’s treasury stock sale applies them another Rs 34 -3 5 per share cash. Now we will wait for the special dividend which is expected to be Rs 50 per share. This will come before 31 st March. All this is a prelude to the disinvestment. There is a lot of fervor around BPCL divestment. It is a good and well managed company. The government is trying to do what needs to be done to ensure that the disinvestment process goes through smoothly. Considering everything to be regular, I will not like to comment on the oil price hike and the marketing firms not increasing the price in the last 10 eras. That remains a question mark and originates some disarray in the minds of the potential investors. But the oil marketing firms have gone through this cycle. They are permitted to get overcompensated formerly the elections are over. So, that is getting played out. I am particularly hopeful and bullish on the entire oil backpack, particularly BPCL, It is a good buy for an investor who has a 6-12 months’ horizon in spirit. The disinvestment will happen and the chaps who are taking risk by investing now are likely to be handsomely rewarded. Everyone is betting on significance right now as opposed to growth. Do you find ethic in any of the forged down bank lists? Perfectly. We are strong believers in financial services. If we are pencilling in a increment of 8-9-10% in GDP in the next fiscal, financial services by and large should double-dealing or triple of that. And if that is the case, there are a whole lot of financial services companies which are still trading at alluring valuations. I can talk about a couple of turnaround occurrences. Take CSB. It used to be known as Catholic Syrian Bank. The conduct deepened and a good deal of focus “re coming back” in the businesses which are high yielding. Gold loan is about 40% of their record now. Q3 answers goes to show that. The low-cost deposit base continues to remain sticky. The net perimeter is poising around 4% which is good. The resource excellence problems have been greatly left with. Considering where it is today, the investors can consider buying. We are looking at about Rs 330 -3 40 for the Catholic Syrian Bank. We can look at some of these residence finance corporations. We like residence finance quite a bit and in the financial services room, HDFC Limited is still relatively enticing for a long-term investor. One can look at Can Fin Homes. One can look at LIC Housing Finance. In the part home room, the larger players certainly will have a significant advantage going forward in terms of fundraising, deployment and in terms of building their retail journal. So one should look at these. The other room is the insurance, especially life insurance. It is a great space to be in. I will not recommend HDFC Life though it is the best company in the sector because of the sheer valuation at which it is trading. But one needs to look at Max Life. I had recommended this inventory at a much lower level but even at the current level, Max Financial can be bought as can be SBI Life — for an investor who is building a long-term portfolio. These are secular compounding floors. Do you read the ESG theme catching up fast? Yes, definitely. Look at what really happened globally. This has become a big trend and people are looking at ESG as an investment theme and undoubtedly “thats a lot” of these environmentally friendly companionships which are attracting a lot of attention and speculations. You can talk about the world solar business, world-wide agricultural financing companies and clean energy and clean-living ocean are large-hearted. As far as domestic markets are concerned, as an ESG compliant investment, we have been looking at VA Tech Wabag. This is a company which is into water treatment and they have been getting a lot of interesting guilds. Some of these companies can be looked at. In the solar space, there are some firms but we are not in a position to recommend any of the solar companionships. Maybe at some stage when we have more firms, we will be able to look at them in India as well. What about good old-fashioned IT refers? They have had some bouts of consolidation and correction but the fundamentals continue to be intact? I completely agree with you that the fundamentals are absolutely intact for the large tech companies — TCS, Infosys, Wipro and HCL Tech. But the incremental advantage in these will be taking a little time to come. If you are a patient investor, you want to play the long play with a five-year or a three-year time horizon. There is absolutely nothing wrong in investing in these companies even now. But if you are looking at let us say one, one-and-a-half-year time horizon, maybe you should look at some of the nimbler, smaller tech companies. We can talk about L& T Infotech and Happiest Memory. The only difference between the large and these companies is that in case of some of these companies like Happiest Spirit, most of their business is digital and they are completely geared up for this digital change which we are witnessing now. Some of these companies is rather ahead in terms of their digital journey and equipping suitable customised solutions to their world clients. So if I had to bet today and take a call for one year, probably I will go for some of the smaller reputation. Some of the other niche tech companionships like let us say KPIT can also be looked at.

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