Top NBFC stocks to buy: As the second quarter earnings season has started, brokerage firm HDFC Securities has recommended non-banking financial companies (NBFC) stocks to add in the portfolio ahead of Q2 results FY27.
The brokerage firm highlighted that NBFC credit growth has sustained the growth momentum in Aug-26 (16% YoY), driven largely by retail and services segment.
“Not withstanding the global headwinds, the credit revival has remained strong across Banks and NBFCs in FY27, with industry segment driving the growth surge for Banks. Retail segment across vehicle, housing, unsecured credit and gold continue to witness uptick in loan growth,” the firm said in a note.
The brokerage firm further highlighted that global challenges, including inflation risks and supply chain disruptions, continue to weigh on the outlook. The RBI’s 25 basis points repo rate hike and its shift to a “calibrated tightening” stance suggest that more rate hikes may follow.
“We expect a further 50 bps increase, which could raise borrowing costs for non-banking financial companies (NBFCs). We expect our NBFC coverage universe to clock ~19% AUM CAGR during FY27-FY29E along with steady profitability. Our top picks in NBFCs are BAF (BUY) among diversifed NBFCs, CIFC (ADD) among vehicle financiers and AAVAS (BUY) and CANF (BUY) among HFCs,” the firm added.
Here are top NBFC stocks to buy as recommended by HDFC Securities –
The brokerage firm has assigned an ‘Add’ rating to L&T Finance, Piramal Finance, Aditya Birla Capital and Tata Capital, with target prices of ₹320, ₹2,000, ₹416 and ₹360, respectively.
Cholamandalam Investment and Finance Company has also received an ‘Add’ rating, with a target price of ₹1,950, while Mahindra & Mahindra Financial Services and Shriram Finance have target prices of ₹400 and ₹1,200, respectively.
Among other companies, Standard Surfactants has been assigned an ‘Add’ rating with a target price of ₹5,000, while CreditAccess Grameen has a target price of ₹1,570.
Aptus Value Housing Finance India and Home First Finance Company India have target prices of ₹315 and ₹1,250, respectively. All four companies have received an ‘Add’ recommendation, reflecting the analyst’s positive stance as indicated in the table.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
