Stocks to Buy After Bajaj Housing Finance’s IPO
Introduction: If you missed out on acquiring shares in Bajaj Housing Finance’s IPO, there’s no need to be disheartened. The stock market offers numerous opportunities for growth, especially with the excitement generated by this IPO in the housing finance sector. Market experts are focusing on several stocks that are poised for significant gains following the buzz around Bajaj Housing Finance.
Market Insights on Bajaj Housing Finance
Rahul Arora from Nirmalbang Institutional Equities indicates that the valuation of Bajaj Housing Finance’s IPO is appealing. He predicts that even after its listing on September 16, the stock could see a remarkable growth of 30-35%. The grey market suggests that the shares may list at a premium of approximately 100%, trading at about 7 times its P/BV on debut.
Positive Outlook for the BFSI Sector
Arora believes that the entire Banking, Financial Services, and Insurance (BFSI) sector is currently in a favorable position. He anticipates a growth rate of 20% in Repco Home Finance and over 30% in HUDCO shares. Muthoot Finance is also on his radar as a promising opportunity. The enthusiasm surrounding Bajaj Finance seems to have positively influenced the non-banking financial company (NBFC) sector as a whole.
Future Performance Predictions
Despite an initial period of sideways trading expected after listing, Arora is optimistic that the strong environment fostered by Bajaj could catalyze a surge in other quality NBFC stocks. According to him, investors should look for opportunities in this thriving market.
Investment Preferences
During a discussion with CNBC-Awaaz, Arora shared his favored stocks, highlighting HUDCO as one with potential for a 25-30% gain. Additionally, two auto ancillary stocks, SANSERA Engineering and Suprajit Engineering, are on his watchlist. In the auto original equipment manufacturer (OEM) sector, he favors Maruti and Eicher, while LTI Mindtree stands out as a top pick in the IT sector.
General Market Climate
Arora conveyed confidence in the Indian economy, citing a robust rupee and a decrease in crude oil prices as positive indicators. He highlighted that a potential decline in interest rates in the US could attract foreign investors back into India, elevating market performance further.
Investing in Gold and Other Sectors
Gold Investment: Alongside equities, Arora recommends investing in gold, forecasting a price increase of around 15%. He sees promise in the quick-service restaurant sector, where a 5-10% monthly growth is being witnessed. Companies such as Westlife Food and Burger King are appealing, although he cautions against investing in Jubilant Food at present, recommending instead shares of Devyani and Sapphire.
Defensive Sector Downgrades
Arora has recently downgraded the entire defense sector and reduced the rating for Balakrishna Industries shares. Given this reevaluation, he advises caution for investors considering defense-related stocks in the near future.
Conclusion
In summary, while the Bajaj Housing Finance IPO creates a ripple of excitement in the market, numerous investment opportunities abound in various sectors, particularly within the BFSI and auto industries. With a solid economic backdrop and sectoral enthusiasm, investors are encouraged to consider these stocks for a potentially lucrative portfolio.
