Remain bullish on HFCs; continue to hold Happiest Minds, says Deven Choksey

Deven Choksey of KRChoksey Securities believes there is a reason to remain bullish in the housing finance companies (HFCs) space. He thinks the demand for newer houses will pick up.

"We are having a cheaper cost of funds. The developments are happening into the economy as a result of which the buyer is coming into the market. I would think that demand for newer houses will gradually pick up. I think it is a good space to be into as far as investment is concerned. I feel safer investing in HFCs than investing money in real estate companies. We will remain bullish. This is a space, which should do wonders in next three-five years,” he said.

Choksey likes some of the midcaps IT names.

“They have been in our portfolio except the fact that they have probably ran up quite sharply. That includes names like Tata Elxsi, Cyient Technology. The recent addition to our investment in the midcap space is Happiest Minds. This is one company that deserves a position in the portfolio. This would remain one of the better performers going forward. This is one new addition which we had to post IPO and we will continue to hold it,” he mentioned.

Deven thinks Reliance is trying to capture the lower end of the market, which is dominated by the feature phones.

“It is about 30 percent of the customers who are still operating the feature phone market and that is why they are trying to capture it. Not completely surprised. In a way, it is good that they ended up buying a little higher spectrum. I would think that the business conditions would expand far significantly and that is why the quality of the service will bring the customers to the network,” he stated.

“No change in approach as far as our investment outlook on the company is concerned,” Choksey mentioned.