Now Reading: Mirae Asset Sharekhan recommends 11 BFSI stocks to buy
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Mirae Asset Sharekhan recommends 11 BFSI stocks to buy
The Story in Brief
Mirae Asset Sharekhan has recommended 11 stocks from the banking, financial services and insurance (BFSI) space to buy for the long term, following the first-quarter results of FY27. The brokerage said NBFCs and AMCs reported healthy numbers, while insurance company results were mixed. It noted diversified lenders, vehicle financiers and gold loan providers led profitability, while housing finance companies improved and power financiers lagged.
The stocks include Can Fin Homes, Bajaj Finance, HDFC Life Insurance and Nippon Life India Asset Management. The brokerage said NBFCs began FY27 with strong loan growth, expanded margins and lower credit costs. It cautioned that the RBI's proposal to ban revolving credit could impact growth for some lenders.
Indian Opinion Analysis
Mirae Asset Sharekhan's picks span the full BFSI spectrum, but the list is notable for what it omits: no public-sector bank makes the cut, reflecting a long-running market preference for private lenders with cleaner books. The RBI's proposed ban on revolving credit, flagged by the brokerage as a risk, would hit the business models of small-ticket lenders and fintechs hardest. Investors watching the sector will track the RBI's final decision on that proposal, expected later this year, and the September-quarter results for confirmation of the NBFC momentum the brokerage cites.
The brokerage's highest target upside is on Can Fin Homes at 36%, suggesting the housing finance sub-sector is seen as undervalued despite its recent improvement.
Source: livemint.com
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