GreenEdge Wealth Services founder Digant Haria on Wednesday, January 17, expressed caution on Bajaj Finance while being optimistic about the commercial vehicle (CV) finance sector.
According to Haria, Bajaj Finance has been a champion in the traditional lending space, reaching new customers with loans.
However, the digital world is bringing new challenges and competitors.
Haria highlighted concerns raised by the Reserve Bank of India (RBI) about the personal loan space.
He pointed out that Bajaj Finance faced hurdles, such as a credit card extension restriction with RBL partnership.
Despite reporting positive numbers for the past two quarters, Haria anticipated a phase of consolidation for Bajaj Finance.
He suggested that the company might stabilise without significant growth in the coming quarters.
However, he said, “There's no reason to be negative on Bajaj Finance in my view, nor should we expect any magic from Bajaj Finance."
In contrast, Haria expressed bullish sentiments towards the commercial vehicle (CV) finance space. He identified Shriram Finance and M&M Finance as promising players in this sector.
Haria cited the strong prices of used trucks and increased rural infrastructure activities as positive factors.
With these conditions, the cash flows for individuals using trucks and tractors are expected to improve.
Haria further pointed out that gold is poised to reach a lifetime high, providing tailwinds for gold finance companies.
In the current heated market, he added that investing in housing finance could offer a favourable risk-reward balance for medium to long-term investors.
(Edited by : Anshul)
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