Thanks for reviewing and giving your comments.
Here is my reasoning.
Bajaj Finance –
Initially at the time of allocation (around 800 levels) weightage in bajaj was quiet less. Comparatively to portfolio it run well, which increased the weightage. Also in recent month (around1900-2000 levels) i was able to increase my holding by 1/3rd of existing.
NBFC is a leverage play and any leverage play has its own risk. Thus all banks (less risk because of rbi regulations) and nbfc has their own risk.
Bajaj seems to be one of the better placed while managing risk. They are well diversified, uses technologies in best way, cross sell with in their own customers. To avoid further risk, they are now distributing loan to 70% of their existing customer (very less npa for these customers or no npa). Also this reduces customer acquisition cost also.
Consumer lending is one the growing sector (at least for next 2 decade), which i cant ignore.
Being in fin-tech sector, i have a bit understanding of fintech industry and bajaj seems to be a best play among that (atleast for me). Also my margin of safety is quiet good and i can hold it comfortably.
Seems i have talked too much in favour of bajaj. I think only being nfbc is the risk against bajaj and superb management is doing their job perfectly.
SBI CARDS –
This is very newly listed company, so dont have a much to talk about it. But these are factor which make be to invest in it.
Credit Card penetration is least penetrated in India when compared to developed countries. So huge market is waiting for it. Today its only 700-750+ above CIBIL scores are allowed to opt for credit card. But might be in future the eligibility is eased and new set of customers will be available. Also personal loans are less risky in nature.
Since it is backed by SBI bank so bursting out is very unlikely to happen. And pandemic (like covid) is helping big companies to grow more as smaller competitors are leaving market.
Cost of distribution and working capital will be decreasing as nature of business will be digital completely. Also i can see lots of co-branding and some special cards like 7% cash back when used with ola. This shows that they are tracking the market and comping up with solutions to cope up with and to remain in main stream.
Here my buying average price is around 550 levels. so again some margin of safety. Also i might exit this SBI card if things are not happening as per expectations and might increase stake in bajaj or hdfc bank or some new stock in future.
I think LTTS has many verticals (Healthcare, Telecom, Industrial, Plant Engineering, Media/OTT) and well diversified company and in future companies don’t want to setup their own RND system/Campus and may be using on a cost basis and its cost effective.
Recent news where LTTS is helping Microsoft to transform their campus to smart campus-- https://www.moneycontrol.com/news/business/lt-technology-services-expands-collaboration-with-microsoft-to-offer-workplace-transformation-solutions-5643411.html
I think many more such deals are likely to happen, where LTTS might help companies in term of campus, R&D Labs, Plant engineering, etc.
L&T as parent group would be helping to achieve this. Also this industry is less competitive when compared with traditional IT companies.
Traditional IT i am not interested as i am waiting for product bases (or SaaS based ) companies (Fresh Desk, ZOHO, etc) to get listed.