Basant Maheshwari recommends PNB Housing & Can Fin Homes

Here we track the latest buys and sales and portfolios of famous investors
Post Reply
Pee Vee
Site Admin
Posts: 453
Joined: Mon Dec 26, 2016 10:45 pm

Basant Maheshwari recommends PNB Housing & Can Fin Homes

Post by Pee Vee »

Basant Maheshwari has recommended two stocks to buy in latest interview.

That brings me to HFCs. Given the thrust by the government post the budget when it comes to HFCs and when one talks about HFCs in particular, it is PNB Housing Finance and Can Fin Homes which seem to stand out. What is your own view on this particular pocket and, of course, these two names which seemed to be leaders in the pack?

It is not a recommendation at all and since you have spoken about these two name, we own both of them. Can Fin, we own since 2015 and that has kind of saved our Titanic from sinking whenever we hit an iceberg over the last one-and-a-half years.

As for PNB Housing, it was the first day first show stock. Even when I was on the Diwali show, I said there are a flurry of IPOs coming and we have to just look at them. So when the world was crumbling under demonetisation, we were buying PNB. It is not a recommendation. I am not asking anybody to buy. We can sell it tomorrow itself. I am just telling you. In housing finance, you have a 20% grower, you have a 30% grower, you have a 40% grower. So the difference between 20 and 40 is like a distance from earth to the moon. The 20% growers are good, 25% growers are very good, 30% ones are brilliant and 40% growers are extraordinarily wonderful. We like to be with the 30-40% growers. Just do the basic back of the envelop calculation on PNB Housing just for academic interest. 18-19% ROE for FY18 on their book value. Look at the kind of profit it generates, look at the kind of geographical diversification it has made and all that cost to income can come down and things can happen. So it is going to beat most of the analysts for their estimates whatever they have made and it should do phenomenally well and that is liquid stock.

The large institutions might get interested at some point. Suppose you have a two-three-four quarter history of delivering good returns. So these are the two names which we own so that is what I can say, not a recommendation at all, please do not buy anybody just by looking at what I am saying.
Post Reply