ET NowIn a chat with ET Now, Nitin Raheja, CIO, AQF Advisors, shares his views on Edelweiss Finance. Excerpts:
ET Now: A quick call on where you are comfortable allocating capital.
Nitin Raheja: We like broking company Edelweiss Finance as such. If you look at the valuation, it trades at 1.3-1.4 times book. It has been growing its credit business. It drives almost 70% of its revenues from the credit side. It has got a great commodity business, on which it earns very high return ratios.
The broking industry is going through its cyclical upturn and that is going to add incremental numbers sitting on. So we would not be surprised if you see this growing at 50% plus in terms of earnings and the valuations, when you compare to its peers as well as NBFCs, are far-far cheaper.
ET Now: A quick call on where you are comfortable allocating capital.
Nitin Raheja: We like broking company Edelweiss Finance as such. If you look at the valuation, it trades at 1.3-1.4 times book. It has been growing its credit business. It drives almost 70% of its revenues from the credit side. It has got a great commodity business, on which it earns very high return ratios.
The broking industry is going through its cyclical upturn and that is going to add incremental numbers sitting on. So we would not be surprised if you see this growing at 50% plus in terms of earnings and the valuations, when you compare to its peers as well as NBFCs, are far-far cheaper.
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