NBFCs Q1 Results Preview - To Be Slower In Growth; Pressure On NIM Sustains: Nirmal Bang

Nirmal Bang Report

Q1 FY25 is likely to see some disruption due to elections/seasonality. We expect covered housing finance companies to deliver strong loan growth, driven by Housing/loan against property segments.

We prefer Home First Finance Company India Ltd., PNB Housing Finance Ltd. and Repco Home Finance Ltd. as our top ‘buys’ in the space.

While growth in the used commercial vehicle portfolio is expected to support margins for CV Financiers, rating upgrades and NHB refinance will help control the cost of borrowings for HFCs. Opex is likely to remain elevated.

Overall asset quality environment remains benign, with some pockets of stress visible in MFI/Vehicle Financing, particularly post elections.

In our view, following will be the key monitorables from Q1 FY25 results of NBFCs –

1. FY25 growth guidance,

2. NIM movement in subsequent quarters,

3. Asset quality and collection efficiency trends.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.