Why Viral Berawala is bullish on NBFC sector

economictimes.indiatimes.com:

«Similarly MFIs have been ignored for long but MFIs follow a cycle so if you get the cycle right the upside can be big.So MFIs and mortgage or housing finances within NBFCs where we are currently investing,» says Viral Berawala, Director, Buoyant Capital. Have you started buying pharma yet because that too is showing sparks that perhaps worst should be over, especially for generic exporters, pricing pressure and big demand for medicine in US.So there are sort of two buckets in which we have divided pharma. So there will be negative impact of lower chemical prices, especially the API prices have gone down. So within pharma which are very API driven is something we are not looking at but pharma where the exposure is more towards US generic, their prices have stabilised. The price erosion, normally what we are seeing this year, we are seeing much lesser price erosion. So within pharma, we like companies which are exposed more towards US generic and avoiding where the exposure is more towards APIs. In the auto, auto ancillary space, where all have you been looking for value? Anything which got you occupied there? So within auto, we are not into auto but especially auto ancillaries. So a couple of factors have played out in auto ancillary. Some of the auto ancillaries who are supplying to Europe, the cost of Europe auto ancillary manufacturers have gone down a lot, both tier-1 and tier-2. And that is where some of our, let us say forging companies have done very well. So within auto, that is the space we like. We participated a bit in the two wheelers but now we think the valuations are full on the two wheeler side. So auto ancillary, especially where there is some exposure to Europe, is we think a good place to be. Part of