Deven Choksey, MD, DRChoksey FinServ Pvt Ltd, today said mid- and small-cap valuations are largely elevated while Nifty50 companies have remained quite moderated. “The current correction in the price, which is bringing the Nifty50 companies to a P/E (price-to-earnings ratio) of less than 20, is not so expensive. We will probably see buying returning to India, particularly in large caps, in 2025,” the market veteran told Business Today on Thursday.
When asked about Manappuram Finance Ltd shares, he said, “Everything is fully priced in at this point of time and nothing is surprising or exceptional going forward either. So, I’m not so bullish about the immediate prospects of the gold finance lenders. Maybe if the market gives a correction in the price then that could be a better opportunity. From the sustainability point of view, we prefer to stay with consumer finance lending and housing finance companies.”
Manappuram Finance was trading 1.06 per cent up at Rs 181.95. The Reserve Bank of India (RBI) has removed supervisory restrictions imposed on Asirvad Microfinance Ltd with immediate effect. Asirvad Microfinance is microlending arm of Manappuram Finance.
In response to a query on shares of Reliance Industries Ltd (RIL), Choksey said, “We continue to remain bullish on RIL as it is adapting the entire generation of technology from AI. Two verticals — retail and Jio Platform — are likely to become separate listed entities in 2025 and 2026-27. So, if that is the reality then in such case the unlocking of valuation of around Rs 14-15 lakh crore would be happening. Reliance, at current levels, is discounting probably the worst case scenario the one has calculated about the earnings on the refining side of the activity.”
From the third quarter (Q3 FY25) onwards, he said the prospects of refining activity are likely to improve. The market expert added that RIL currently looks interesting from an investment perspective. RIL shares were 0.99 per cent down at Rs 1,252.20.
Choksey also spoke on SRF Ltd shares which saw a sharp uptick today. “SRF’s input cost, which till now bothered this company, is now taken care of. In most of the chemical and speciality chemical companies, the last one-and-a-half years have been a troublesome period where they had the rise in input cost and they were unable to pass it on to the customers because post-Covid whatever the demand took place I think got rationalised. Customers of these companies were also subdued which I believe is now getting corrected. I think that the worst is behind for companies like SRF. We like the investment proposition now compared to what it was one-and-a-half years back. I think rerating and profit improvement both are on the cards,” he stated. SRF’s stock moved up 12.42 per cent at Rs 2,642.80.
