Raamdeo Agrawal Stock Recommendation: Raamdeo Agrawal, Chairman of Motilal Oswal Group, has said that he likes the financial services and recommended investing in banking stocks amid the war.
"I like financials. Financials are not that much impacted," Raamdeo Agrawal said in an interview with ET NOW.
He said that the Middle East war has impacted the sectors like FMCG the most, where packaging and logistics-related costs have gone up due to supply disruptions.
"The direct impact is on the physicals. For the FMCG, the packaging cost has increased instantly, and the logistics cost has gone up. But if you are in the financial services, the impact is comparatively less. Financials have also been impacted, but the intensity is very low," he said.
Raamdeo Agrawal Stock Recommendation: Financial Services
"Financial services as a sector is not disrupted much because of the war. If the war continues for 2-3 months.... obviously the impact will increase," he said.
"Before the war, in my history of 40 years, I have never seen banks with the lowest possible gross NPA and net NPA. Delinquencies are literally zero. Banks are in terrific shape. Now this stress has come, but more than the stress, the valuations have corrected," Raamdeo Agrawal said.
For Stock Markets News - Click Here
"FIIs are invested in a lot of banks. In the private sector, FIIs own 40-50 per cent. So they are just dumping and therefore the banks are under pressure," he said.
Raamdeo Agrawal Stock Recommendation: ‘Great Time To Buy Bank Stocks’
Raamdeo Agrawal said that this is a great time to buy bank stocks, and also, earnings visibility is very good. He said that stocks like the State Bank of India (SBI) are available at a very cheap rate.
"This is a great time... banks are available at less than 20PE, maybe at 15PE. SBI is available at 10-12 PE. Banks are growing at a good rate, and the credit growth is at 14-15 per cent. We are looking at a profit growth of anywhere between 15 and 25 per cent," Raamdeo Agrawal said. (Raamdeo Agrawal Stock Recommendations)
"That's where you can hide or those kinds of things you can buy," he added.
