Here's why Rakshit Ranjan is bullish on NBFC sector

economictimes.indiatimes.com:

«Not yet fully convinced on any specific name that we can talk about but not so much the PSUs. Elsewhere in the sector, there are some possibilities of finding an opportunity here,» says Rakshit Ranjan, Marcellus Investment.Let us begin by talking about the defence space itself. We all know the kind of potential it has, the opportunity size etc but do you really think a) it will materialise and b) is it not priced in already? I think the opportunity is good.

Whether it is priced in or not that is a company specific call that we have to take. There are certain companies where this a flash in the pan in terms of ability to capitalise on the opportunity for which you are right it might be priced in but there could also be several other opportunities from a bottom up perspective to invest in companies where this is an ongoing structural sort of tailwind rather than a flash in the pan.

So yes, stock specific wise perhaps you will have to go but the opportunity is there and in some areas it must be getting priced in.Talk to us about some of those opportunities, are they emerging more in the manufacturing side, the entire EMS vertical, defence wise as well is it like specific PSU names that you like, is it the naval based companies? Any way you can help us dissect in terms of the entire sector where the value is?We are looking at a few areas ourselves. Not yet fully convinced on any specific name that we can talk about but not so much the PSUs.

Elsewhere in the sector, there are some possibilities of finding an opportunity here.Let us also talk about financials because that is the biggest pie right now. What is your take regarding HDFC Bank? Do you think it will re-rate once this event of merger is past us? To begin with, we