Stocks to buy: UBS picks 4 NBFC shares with upside potential of up to 36%
UBS anticipates a robust cycle of unsecured credit growth in India, primarily fueled by personal loans. The brokerage emphasizes the strong asset quality in banks and non-banking financial companies (NBFCs), coupled with sufficient liquidity in the system. Investors might consider four recommended NBFC stocks, like Shriram Finance and Poonawalla Fincorp, as they promise substantial upside…
UBS has identified four Non-Banking Financial Company (NBFC) shares with significant upside potential. The brokerage sees a strong unsecured credit growth cycle emerging in India, driven by personal loans. This growth is supported by robust asset quality across banks and NBFCs, stable unsecured household leverage, ample system liquidity, and a more risk-on approach from lenders.
The brokerage's targets suggest potential upside. For one stock, a Rs 1,220 target price implies an upside of over 21% from current levels, with the stock having delivered over 60% returns in the past year. Another target price of Rs 2,100 suggests nearly 20% upside.
The third stock is targeted at Rs 380, forecasting a 25% upside from current levels, having risen over 20% in the past year. Lastly, the most bullish target is Rs 640 per share, which implies a whopping 36% upside from today's market prices. However, this stock has declined slightly, by 3% in the last year. The article notes that the writer, Veer Sharma, is not a SEBI-registered Research Analyst or Investment Adviser, and the views are solely those of the brokerage.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
