Samir Arora of Helios Capital is bullish on non-banking finance companies. He expects micro-finance lenders like SKS Microfinance to be multibaggers. (Watch full interview)
"All the NBFCs we own without any efforts will grow their earnings literally by 20 per cent plus every quarter not over the previous year but on quarter-on-quarter basis."
Explaining the premise as to why these companies will grow, Mr Arora says, "The loans are of order of Rs 9,000 and in some case of up to Rs 12,000... let's be shameless about it from stock market point of view, till you continue to put more money, the old guy will never default because he will not suddenly stop paying and you know if he gives back Rs 9,000 then you say under your loan system you are entitled for loan of say Rs 12,000 or Rs 15,000, and this will continue for a long-long time, till the ability of that borrower to handle that debt is gone."
Meanwhile, Mr Arora remains bullish on markets in general.
"I am bullish on markets because the government has passed the Bankruptcy Bill, which is good, and in addition, we hope there will be good monsoon rains," he said.
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