Tag: Gurmeet Chadha

Gurmeet Chadha prefers Bajaj Finance to HDFC — here’s what he thinks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Veteran fund manager Gurmeet Chadha finds the Bajaj twins — Bajaj Finance and Bajaj Finserv — relatively better among housing financiers than Housing Development Finance Corp and Cholamandalam Finance. His remarks come at a time when financial institutions are scrambling to protect their margins amid rapid increases in COVID-era interest rates.

“There are consumption growth levers that are reflected in discretionary spending in the economy,” Chadha, Managing Partner and CIO at Complete Circle, said in an interaction with CNBC-TV18.

He recommends buying Bajaj Finance and Bajaj Finserv shares on dips.

“The Bajaj twins are probably relatively better options among some of the housing finance names like HDFC and even Cholamandalam, where vehicle financing makes a large part of the chunk and we are seeing some uptick in disbursals, and credit quality be maintained,” said Chadha.

Bajaj Finance shares have outperformed the overall market by a wide margin over the past few weeks.

In three months, Bajaj Finance has rewarded investors with a return of 18.7 percent, a period in which HDFC has risen 6.8 percent and the Nifty50 benchmark 5.8 percent.

Both Bajaj Finance and HDFC — the country’s eighth and ninth largest companies by market value — are positive on the economy’s growth prospects in the current environment of steep increases in benchmark interest rates to tackle inflation.

HDFC CEO Keki Mistry believes the level of optimism in the economy is one of the best in recent times.

“The economy is on an extremely strong footing. I genuinely believe that. I genuinely see that in the economy. I talk to friends in different industries. And the optimism level that I have seen today is far higher than I have seen at almost any other time in the past. We have completely come out of COVID-19 (pandemic). So the economy stands on strong footing,” he told CNBC-TV18 last week. 

Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, and President of industry body CII, is no less optimistic. He sees a golden opportunity for the economy.

India can grow 8-10 percent in the next 20 years but it needs to stay focused on building strong domestic financial institutions, he told CNBC-TV18 last month.

Chadha also likes some of the Tier 2 banks where “the worst of asset quality and credit cost is behind… something like an IDFC First”.

“Maybe relatively the risk reward is better there, but it remains a portfolio stock for me for the long term,” he said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Smart Money: Best themes and stocks to own in Samvat 2078

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a CNBC-TV18 special Smart Money, Gurmeet Chadha, Co-Founder and CEO at Complete Circle Consultants shared all the top stocks and themes that one needs to own between this Diwali and the next.

Chadha spoke about the stocks and sectors that one can invest into this Diwali and reap the benefits for years. He is bullish on various themes – changing energy theme, housing revival theme, financialisation of savings theme, speciality chemicals space and digital platform plays.

Also Read: Muhurat trading 2021: Key tips you should know before investing

Gurmeet has been extremely positive about the way the energy mix and the entire ecosystem is changing.

He likes Reliance, Indian Energy Exchange and Tata Power in this green energy theme.

“The energy mix of Reliance makes me very optimistic for the long run. They are building an entire ecosystem around it. They have a roadmap of 100 gigawatts of green electricity portfolio, which they want to convert into carbon-free green hydrogen, very bullish on that. That is something I would look at. It makes me very constructive on Reliance,” he said.

Tata Power’s focus on renewable portfolio impresses Chadha the most. He believes it is an integrated power play that gives access to solar, EV and the way this entire transition is working out

“The solar EPC order book continues to grow, so does their solar panel and solar rooftop projects,” he stated.

Also Read: Larsen & Toubro, State Bank of India, Trent and more: Key stocks that moved the most on Nov 3

Real estate and housing is a very broad sector and this theme will continue to play probably for a few more samvats, not just from this Diwali to next.

According to him, there are multiple ways to play this sector, he is betting on the entire building material play.

“Since it is a long theme, I will restrict myself to companies which are into wires and cables and fast moving electrical goods,” he said.

He picks Polycab. It is a clear leader in wires and cables.

“Between Havells and Polycab, probably Polycab looks more reasonable in valuation,” he said.

Housing finance is the other play he is betting on.

“HDFC is relatively underperformer vis-à-vis other financials, great value in all subsidiaries including life insurance, asset management business etc and now individual loans almost make up 78-79 percent of the book. My sense is this entity can deliver 2 percent RoA and 14-15 percent RoE for probably next three-four years,” he said.

Chadha likes Central Depository Services Ltd (CDSL), Computer Age Management Services (CAMS) from the financialisation of savings theme.

Deepak Nitrite and PI Industries are two stocks he likes from specialty chemical space.

He also likes Mindtree from the digital platform plays.

Advertising tech as a theme will play up. “Excluding Google and Facebook, Affle India has 10 percent market share. I like its proprietary model which is an RoE centric model where they only charge on deliverables,” he mentioned.

For the full interview, watch the accompanying video.

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Looking for stocks ideas from the banking space? Here are Gurmeet Chadha’s top picks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bank stocks have lagged behind in the current bull run, posting relatively lower returns to other sectors despite being one of the most preferred bets of many investors on Dalal Street. As IT valuations peak to new levels amid fears of a looming meltdown haunting investors, interest is rekindled in financials particularly largecaps with market players anticipating greater participation from the heavyweight sector in the rally.

Complete Circle Investment’s Gurmeet Chadha is a believer and recommends ICICI Bank as the best bet from the banking pack, while also recommending HDFC Bank and the State Bank of India (SBI).

On why ICICI Bank is his most preferred stock, Chadha told CNBC-TV18 India’s second-largest private sector bank (on assets and mcap) stock is “still available at a price-to-book value ratio of 2.1-2.2.”

Over the last five years, ICICI Bank’s domestic credit growth has been around 15 percent, and its valuation gap should continue to narrow compared with HDFC Bank, said Chadha, Co-Founder & CEO of Complete Circle Consultants.

In order of preference, he also likes HDFC Bank, and SBI from the PSU banking basket. “There has been relative underperformance in both HDFC Bank and Kotak Mahindra Bank, which commanded a 4-5 book multiple. We saw outperformance in counters like ICICI Bank, Axis Bank and even State Bank of India from the lows,” he said.

SBI’s credit quality metrics are almost comparable to its private sector counterparts. SBI has a restructured book of 0.8 percent of the assets and great focus on all streams, he said. “So in that pecking order, it is ICICI Bank and SBI,” said the market veteran. 

Chadha also likes Federal Bank and City Union Bank. “I think big will continue to become bigger which is what we are seeing in a lot of sectors,” said the market veteran.

Chadha is neutral on Kotak Mahindra Bank. “I am very impressed with what they have done on the loan composition front. All of its subsidiaries are doing well,” he said.

Chadha’s picks from the banking space come at a time when the sector has lagged IT on Dalal Street. In 2021 so far, for instance, the banking index has not only stayed behind its IT counterpart by a wide margin but also been surpassed by the 50-scrip benchmark.

This is in sheer contrast to 2019 when a 12 percent rally in Nifty50 was backed by the banking index’s 18 percent return.

Disclaimer: The CNBCTV18.com editorial team does not engage in speculative or active trading in stock markets and follows its Code of Conduct on securities trading and investment. Any investor/ viewer is advised to carry out necessary diligence on their own or through a certified registered financial advisor for investment decisions.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Investment Guide: Which IPOs to invest in?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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There is an initial public offering (IPO) rush – dozens of issues that have already come to the market and many more are awaiting. According to estimates, issues worth more than Rs 24,000 crore are awaiting to hit the markets in the month of July alone. It is a good time to step back, think about the way to invest in an IPO without getting burnt.

This episode of Investment Guide is about the big IPO gold rush. Gurmeet Chadha, co-founder and CEThis episode of Investment Guide is about the big IPO gold rush. Gurmeet Chadha, co-founder and CEO of Complete Circle Consultants, shared his views.O of Complete Circle Consultants, shared his views.

For the entire show, watch the accompanying video.

To watch other videos in this series, click on the CNBC-TV18 Investment Guide tab below.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IPO watch: Complete Circle’s Gurmeet Chadha assesses the debutants

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Four fresh initial public offerings (IPOs) hit the market this week and they will collectively raise around Rs 9,100 crore. Shyam Metalics and Sona Comstar opened for subscription on Monday, and Krishna Institute of Medical Sciences and Dodla Dairy will also open in the next few days. Gurmeet Chadha, Co-Founder and CEO at Complete Circle Consultants, shared his assessment.

“If you have a clear view that electrification is going to be the future, Sona Comstar could be the one,” he said.

“You need to have a long-term view, and maybe build over it over a period of time. The environment is such that the listing is likely to be good. We need to have a more staggered buying approach over the long-term,” he added.

When asked for his order of priority among these four IPOs, he replied, “For long-term, it would be Sona Comstar. Whenever you go for an IPO, you are either on the long side or on the tactical or listing side – tactically speaking, Shyam Metalics looks good if you want to play the larger side.”

On Krishna Institute of Medical Sciences, he shared, “Being a regional player, it gives you a lot of strength in terms of the retention as far as the doctors and staff go, but hospital is a very gruesome business, it is a long cycle, and you need a player that has better agile formats – it should be like a capital goods stock in a healthcare sector. So, I agree health infra will go up. I think better opportunities will come in APIs, in diagnostics, even in some of the medical devices and equipment players.”

For the full interview, watch the accompanying video.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Add HDFC or Can Fin Homes; accumulate PNB Housing Finance if you get opportunity, says Complete Circle Consultants

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

PNB Housing Finance is locked in 20 percent upper circuit post its fundraising plans.

Gurmeet Chadha, co-founder and CEO, Complete Circle Consultants, shared his views.

“I am in general positive. The entire space will grow. The entire space looks pretty exciting over the medium-term to long-term,” he said in an interview with CNBC-TV18.

“If you get an opportunity to accumulate this over the next three-six months, it is something you can add after HDFC or Can Fin Homes,” he shared.

“There is a housing revival, they will be focused on the affordable housing segment and you have something like PNB with change in management, with great valuations,” he added.

PNB has a great presence. They are in nearly 65 cities, 105 branches and they have the muscle power to scale the home loan business, he said.

For the full interview, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow