More Bullish On Aditya Birla Capital Than Tata Capital, Says Vikas Khemani

Aditya Birla Capital offers a more attractive risk-reward profile compared to soon-to-be-listed Tata Capital, according to Vikas Khemani, Founder and CIO of Carnelian Asset Management and Advisors.

Speaking to NDTV Profit, Khemani said that while Tata Capital is a 'strong company', AB Capital stands out in the space for its superior growth prospects and better return on assets (RoA).

“Tata Capital is a good company, but we always look at things from a risk-reward perspective, and in that sense, Aditya Birla Capital has always been our top pick,” he said. “We like the risk-reward profile of this company more as it provides better growth and better return on assets."

Khemani's statement comes against the backdrop of Tata Capital's IPO, which opened for subscription on Monday.

Tata Capital is looking to raise over Rs 15,000 crore, thus making it the biggest issue of this calendar year. Subscription for the issue closes Oct. 8, with the allotment of shares to IPO investors likely to be finalised on Oct. 9.

The issue had been in focus, especially after reports of unlisted shares being gobbled up at a price exceeding Rs 1,000, only for the issue price to be in the Rs 310 to Rs 326 range.

Talking about the surge of unlisted share trading, Khemani cautioned investors.

“The unlisted market has seen huge traction in the last one to one-and-a-half years,” he said. “Investors are buying in the unlisted space without understanding the valuations. We always look at the risk-reward while purchasing.”