Stock Review: First Leasing

Mainly from the fundamentals. What we have in place for the company is the financial performance or the fundamentals in place because EPS of Rs 16 for FY11 with a book value of Rs 120, so, that translates into a P/E multiple of 5 price to book of 0.7. What we have all been missing is this company has been the growth because if you see the company has been posting flat performance, maybe for last two-three years with a EPS of ranging about 15-16. But now I think the time has come, NBFCs have come on flavour or on radar of all the promoters also to expand to grow. First Leasing being the first company, I don't think that they will be left behind.

When you have the comfort on the fundamental side, it is seen risky to venture into that stock. Maybe with the growth announcement plans getting announced by the company or even could be as an acquisition target, this share can give a good upside from hereon of about 30-40% in a year.